Forums » All Categories » Investing » FL » Broward County » Deerfield Beach » I am a first time home buyer. I have no debt and $250K cash so I can pay for a house upfront. Should I do this, or pay 20% down and get a mortgage? Additiona info: (1) the home is for my 88 year old father (for now) and Im not 100% sure Id live there afte
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I am a first time home buyer. I have no debt and $250K cash so I can pay for a house upfront. Should I do this, or pay 20% down and get a mortgage? Additiona info: (1) the home is for my 88 year old father (for now) and Im not 100% sure Id live there afte
(Deerfield Beach, FL)

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Michelle C. posted on 6 Feb 2012 02:57 AM

I am a first time home buyer. I have no debt and $250K cash so  I can pay for a house upfront. Should I do this, or pay 20% down and get a mortgage? Additiona info: (1) the home is for my 88 year old father (for now) and Im not 100% sure Id live there afterwards... (2) Im not sure of how good my credit is these days.. havent lived in the US for over 10 years.

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Answered (Not Verified) Equity Depot replied on 15 Mar 2012 10:27 PM
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Michelle, even though you have 250k in cash, it is better to put down 20% or more and get a mortgage. As housing prices go up you will reap the benefits of that decision. For example if you finance a home for 250k and put 50k down you will actually finance 200k. If the property goes up 8%, it now worth 216k and you have an appreciation of 16k. You can take the 200k and put in a commercial REIT (real estate investment trust) or start investing in property yourself. If you credit score is 680 or above you can get a good rate as an investor and potential purchase 2 to 3 other properties that you can rent out to receive rental income. If you would like to discuss any of these options contact me (DC) at equitydepot@gmail.com I am an investor and partner in a local real estate fund that buys, sells and rents in South Florida. Good Luck
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interested in foreclosures replied on 30 Mar 2012 07:48 PM

I see that some homes sold for 30k in Edgewater, Fl where I used to live. The estimated value is 99k. There are a few like that there. I wonder if I could buy a home, put 20% down, and rent it out. I'm a bit confused though. When I look at some homes in NC, there is something called a "transfer price" and there's the estimated value. Let's say the transfer price is $140k and the estimated value is 65k. What would an investor probably pay for that home? I just wondered how that works. Surely nobody would pay more than the estimated value for the home, right? Yet, I look at the sold prices on a lot of homes and it's higher than the estimated home value. Do you see why I'm confused? Let me know your thoughts.

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