the essence of buying a house with a loan is to borrow the capital lever to realize the demand for buying a house in advance. Pay the price of interest for this convenience.

It is more cost-effective to buy a house with a loan than with the full amount, mainly from the perspective of the preciousness and leverage of cash.

the cost of buying a house includes:

cash cost+opportunity cost+interest cost

the benefits of buying a house include:

moving into the house in advance (security, household registration, face, etc.)+the possible appreciation space of the house

The cash cost is your down payment and other related house purchase expenses, and the opportunity cost means that you can't invest in other higher-yielding channels, such as stocks, after paying the house price.

for example, if you have 1 million yuan and a suite just sells for 1 million yuan, if you buy it in full, you will have no cash to invest in other things. At the same time, we must bear the risk that the house may not appreciate in the future. On the other hand, if you pay a down payment of 3, yuan and then repay the principal and interest every month, the bank interest rate is assumed to be 5.4%, which is about several thousand yuan per month. However, the remaining 7, cash levers can leverage other investment income, such as stocks and funds, and the yield is usually higher than the bank loan interest rate.

finally, the loan part can avoid the risk of RMB inflation. The cash in hand will also depreciate.