Friday, 13 July 2012

Paying Cash for Homes you Buy

People haven't been parking their money in investment properties for a while now. The economy has been shot and real estate agents in second-home destinations like Palm Beach and Palm Springs have complained of being particularly badly hit. The only bright spot on their otherwise dull professional calendars has been the occasional sale made to customers interested in buying a second home for themselves.

Home Sales

The surprising thing about these home sales has been the way they have been paid for: almost every buyer in these markets usually pays for homes with cash. Of course, these aren't families that struggle for money. These aren't families where putting money up towards a house will mean taking it away from somewhere else where it could be needed. In families that have a good bit of discretionary income, staying clear of tiresome mortgages has become an important consideration when buying a second home.

Pay Cash For Homes

What does it do for someone to pay cash for homes they buy? Of course, it isn't surprising to learn that being able to put cash on the table is something that brings a whole host of advantages with it. To begin with, if you don't need a mortgage, you won't find yourself hanging around every bank in your neighborhood trying to get a little understanding – which, by the way, can the notoriously difficult to come by. The banks are reporting that they've approved less than half as many mortgages this year as they did before the recession. Add to that the fact that prices have fallen on the kind of homes that people look to for their second-home purchases - waterfront homes and the like - and paying cash for homes doesn't seem like such a far out idea anymore. Why, sellers on the higher side of the market with homes to sell, insist these days on cash-only deals. They want to reassure themselves that they're dealing with people who are wealthy enough.

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