More and more people prefer to buy housing without mortgage before that request the bank credit. The reason? That many users do not want to go into debt because expectations about the future are uncertain. After the housing crisis, many people already don’t want to have to be paying monthly mortgage interest to a bank. But there are other important detail. And it is that now those who buy homes are rich, because they see the opportunity to buy property at low prices, while the poor to abstain from buying and tend more to rent.
With this scenario, I want to introduce you in this post the options you have if you also are considering buying a home without applying for a mortgage to a bank. You will see that it is not so much difference, although you should remember that you set the relationship directly with the owner of the property.
Is it crazy to buy a home in cash?
No, it isn’t. Almost half of the houses they are buying now are buying in this way. Usually, inverter’s profile is usually a person of middle class, with more than 55 years. It is people who have been working and saving almost all of his working life, some of them single or divorced, which do not need a House too big and expensive to live. In addition, they are people who distrust of banks and do not want to purchase debts with them.
Of course, the idea of buying a flat without the intermediary of a bank is minority among young people, since they don’t usually have enough savings to buy a flat spot, except the rich. Neither the unemployed people can opt for this option, and generally all those who do not have enough financial freedom.
Buy home without mortgage: ways and alternatives
The more usual option when purchasing a floor without applying for a mortgage is have saved money and pay for the House in cash. There are people who can afford buying a home of these prices without having to apply for credit, or rely on anyone. With the advantage that the housing prices have fallen, now savers come with better eyes pay those amounts, because before a House as good by those prices was not obtained.
As mortgages increase housing with the interest payment, it is better for the buyer to opt out of purchasing without mortgage. And if you want to know more about loans to buy a House please click here. Well, those who do not have much money saved can now search other formulas for the acquisition of an apartment without applying for a mortgage. For example:
You can rent an apartment with option to purchase, so that you pay every month to the owner an amount, which accumulates to pay the full price of the dwelling at the end. It is an interesting possibility, because you don’t have a mortgage with the Bank, and at the same time distribute the payment over several years to avoid having to spend all at once.
You can buy a flat under auction. Although winning a floor in a real estate auction is not easy, because they also compete entities hunting for real estate investments, it is a place to find apartments that banks do not want and which have arrested someone who could not afford.
You can ask for grants. Instead of applying for a loan to a Bank, you can check what are subsidies that gives the State to persons or families with specific characteristics for the purchase of housing. Researches on the Ministry of housing in Spain, or anyone who is the Secretariat in your country, and requested information on aid for the purchase of housing.
Advantages of buying in cash and without mortgage housing
Buy cash has many advantages that you do not always have. Let’s see what are:
Less risk for your economy. Don’t you owe money to no one. They can not seize the House for non-payment.
You save paying interest to a Bank, which makes you go up in price. But that also you must not forget that the Euribor and interests may increase over time, so at the end you don’t know what you’re going to pay.
Advantages to find best prices. Interest to many property owners who pay them cash, and above all, because they have urgency to sell. The market situation is not good, and if they find a buyer willing to pay it all at once, they will care him fondly and will try to close the transaction. “do 45,000 euros for the floor? I leave you in 40,000 if you give it me tomorrow morning”. I hope to have a clearer now the options you have and why it is a good idea to buy a home without having to apply for a mortgage to the Bank.