(The author discusses in Part 1 of the Advantages of Buying with Cash and summarizes them as effective investment, preserving the value of cash by converting it into fixed assets, and the freedom to dispose of the property in the future—in addition to the speed with which one can acquire a home by paying in cash.)
Advantages of Obtaining a Mortgage
1- Freeing up cash flow, which means you can invest it in a project that generates monthly or annual profits, thereby reducing your financing costs or covering them entirely, God willing.
2- Saving on rent payments: Paying mortgage installments with an acceptable profit margin is better for you than paying rent for the property where you live with your family.
3- If you choose a property with more than one residential unit (a house with two apartments, for example), this will generate income that can help cover part of the installment and financing costs as well.
4- There are many financing programs supported by the Real Estate Fund, which can cover a significant portion of the mortgage costs for the borrower.
Conclusion
After reviewing the advantages of purchasing residential property in cash or in installments through banks and finance companies, it is important to note that there are certain considerations regarding real estate financing when compared to purchasing with cash. Perhaps the most important of these is that financing is subject to specific conditions that must be met by both the applicant and the property itself. On the other hand, your ability to remain in the home is directly linked to your commitment to making monthly payments; consequently, this raises concerns for some about the future, especially for those in temporary or seasonal jobs or for entrepreneurs.
We can say that the decision to purchase is a personal one for the individual seeking to do so, and it is therefore up to them to decide whether to pay in cash (if their financial situation allows) or to apply for a mortgage if they do not wish to pay in cash. Decisions may vary from person to person depending on their individual circumstances. Someone who is in a hurry and has the financial means will not mind paying in cash to acquire that home; conversely, a person seeking financing must research the most suitable and compatible lender to apply to and completethe deal to purchase the home of a lifetime, God willing.
Specialist in mortgage financing and performance.
