The two most common ways to buy a house are to buy a house with full payment and to buy a house with a loan. Each method is suitable for different people. Some people think that buying a house with full payment saves worry and money, while others think that the down payment can be used as leverage to borrow more money from the bank. So which one is more cost-effective, buying a house with full payment or buying a house with a loan? This starts with the difference between buying a house with full payment and buying a house with a loan. This article will introduce which one is more cost-effective for buying a house with full payment and taking a loan.
Buying a house with full payment
1. Buying a house with full payment saves money
When you buy a house, you will find that if you use full payment, the developer will If more discount space is given, the discount space may reach 3% to 4%. Judging from the house price of 1 million, it means that you can save 30,000 to 40,000 yuan at once. From a numerical perspective, it does cost a lot of money.
2. The procedures for buying a house with full payment are simpler
Since buying a house with full payment does not involve a bank loan, the procedures are simpler. Generally speaking, as long as the home buyer is optimistic about the house, they can sign a contract with the developer and pay the payment.
3. It is easier to resell when buying a house with full payment
Since the house is purchased with full payment, the house is not mortgaged in the bank, so the buyer can easily obtain the complete property rights after buying the house. , it will be more convenient when selling your house. Second-hand home buyers prefer homes without loans and mortgages.
4. Buying a house with full payment is financially stressful
Buying a house with full payment has many advantages, but it is not suitable for every home buyer. If your financial ability is limited, buying a house with full payment will face greater difficulties. economic pressure. Even if you can borrow money, paying it back is a cumbersome process.
Buy a house with a loan
The total price of a house with a loan is high. When buying a house with a loan, the buyer not only has to pay the original total of the house, but also pays the bank's interest. Take a commercial loan as an example. If you take a loan of RMB 1 million with a repayment period of 30 years and adopt the equal principal and interest repayment method, then the total interest of the commercial loan will be approximately 910,000 yuan (the commercial loan and mortgage interest rate is calculated as 4.9%).
1. The monthly payment pressure for buying a house with a loan is high
Although you only need to pay a down payment in the early stage of buying a house with a loan, the monthly payment is also quite stressful for home buyers. of.
2. It is more troublesome to buy a house with a loan and resell it
When buying a house with a loan, the other rights certificate of the house is mortgaged in the bank. Therefore, if the house buyer wants to sell the house, he must first pay off the bank loan. De-mortgage. The process is complicated and cumbersome, and second-hand home buyers generally do not like to buy a house with a loan.
3. The risk of buying a house with a loan is small
Buyers who apply for a loan to buy a house will go through the bank, and the bank will check the qualifications of the developer. If the project is not standardized or legal, the bank will It will not be easy to get a loan, so the risk of buying a house is smaller.
By comparing buying a house with full payment and buying a house with a loan, you should know the difference between the two. Buying a house with full payment for the first time requires a lot of money and a lot of pressure, but it also puts financial pressure on you every month. The down payment for buying a house with a loan is small, but the monthly payment is stressful. You can decide which payment method is more suitable for you based on your family income and savings. The best way to buy a house is to choose the one that suits you.