The dream of Owning a lifetime home for the family is a goal for every person who seeks to secure comfort and stability for his family members by ensuring a decent housing suitable for them and at the same time their future haven, but many of us are confused when seeking to achieve this dream in choosing the most appropriate matters, as buying a house requires securing a large amount of money. Thus, it is imperative to answer an important question, which is whether to buy that house with cash (if available) or go towards banks and real estate finance companies? To answer this question, there will be many advantages of each option, which must be taken into account before answering it, as the focus of the conversation is on the price of the residential property and how to secure it.
<Those who have the necessary liquidity will have the ability to buy as soon as the right property is available to them and the most appropriate price with their financial capabilities, while on the other hand, those who wish to finance will have to determine the amount of the financing amount, the appropriate profit margin percentage and the availability of the down payment, and here the subsidized financing programs from the Real Estate Fund and the Ministry of Housing also play an important role in helping the citizen to buy as they cover up to 100% of the financing cost (for 500 thousand riyals and below).
Advantages of buying in cash
1- Maybe one of the most important advantages is the freedom of choice without being tied to financing conditions and so on, which is an important and influential advantage.
Maybe one of the most important advantages is the freedom of choice without being tied to financing conditions and so on.
2- Effective investment, buying a real estate (house), even if it is for the purpose of housing, is at the same time an investment because real estate prices are relatively stable and many of them increase in value over time.
<3- Cash often loses its value over time, so converting it into a fixed asset will preserve it.
4- Freedom to dispose of the property in the future (real estate), meaning having full freedom to make any decision, such as selling, adding or modifying the property, and this is an important aspect in the future.
5- The speed of obtaining the house since paying in cash can be done in one or two days at most.
1- Saving cash, which means you can put it in an investment project that generates monthly or annual profits that will reduce the cost of financing or cover it completely, God willing.
2- Saving rent payments, meaning that paying the installments of ownership with an acceptable profit margin is better for you than paying rent for the real estate property you live in with your family.
3- If you choose a property with more than one residential unit (one floor and two apartments, for example), this will generate an income that contributes to paying part of the installment and financing costs as well.
4- There are many financing programs supported by the Real Estate Fund and this will bear a large part of the mortgage costs for the applicant.
We can say that the decision to buy is an individual decision for the person wishing to do so, and it is he who decides to buy in cash (if his financial solvency is appropriate) or apply for real estate financing if he does not want to pay cash, as decisions may vary from one person to another according to his situation, who is in a hurry and has the financial ability will not mind paying cash to obtain that housing and on the other hand the person wishing to finance must search for the most appropriate and compatible financing entity to apply for it and complete the deal to buy the home of a lifetime, God willing. Real estate financing is the only way to buy a home in the future.
PhD in Strategic PlanningBenefits of getting a mortgage
After reviewing the advantages of buying a residential property in cash or in installments through banks and finance companies, it must be noted that there are some notes on real estate financing if compared to buying in cash, perhaps the most important of which is that financing is subject to certain conditions that must be met by the applicant and the real estate property, and on the other hand your stability in the house is directly related to the extent of your commitment in making monthly payments and thus a concern for some from the future, especially for non-permanent or seasonal jobs or entrepreneurs.
