All Forum Posts by: Eric Justice

People buying a property in all cash can help future generations. I think it can help improve homelessness. 

Quote from @Vasudev Kirs:

Quote from @Eric Justice:

Quote from @Vasudev Kirs:

Quote from @K S.:

I would not buy a condo in san diego with all cash regardless of how high interest rates were/are. what was your reasoning behind buying it with cash - just curious.

The reasoning for all cash seems to have benefits. I think this would even make an entire economy better. If someone were to buy a property in all cash, there would be less of a need to rely on steady income to pay for housing/living. If someone only had to pay for homeowners insurance and property tax, savings would increase substantially (owner does not have a mortgage). A mortgage is, “a legal agreement by which a bank lends money in exchange for taking title of the debtor’s property. The conveyance of title becomes void upon the payment of debt.” (New Oxford American Dictionary)

If you pay for a property in all cash, there is no need for a mortgage. There is no interest rates when you have no loan. The owner would hold title. 

I agree. My statement was in reference to a condo which can have other expenses like HOA and low appreciation compared to a house.

I’m not too familiar with the San Diego area for real estate. I have visited there a few times though. Appreciation is an increase in monetary value. If you look at home prices around 30-40 year span, they increase substantially. In 1964, the average single family home prices were $20,000. In year 2000, the average single family home prices were around $200,000. That’s a 900% increase over the span of 36 years. 
I would assume apartments or condos have similar data in terms of numbers. 

Quote from @Vasudev Kirs:

Quote from @K S.:

I would not buy a condo in san diego with all cash regardless of how high interest rates were/are. what was your reasoning behind buying it with cash - just curious.

The reasoning for all cash seems to have benefits. I think this would even make an entire economy better. If someone were to buy a property in all cash, there would be less of a need to rely on steady income to pay for housing/living. If someone only had to pay for homeowners insurance and property tax, savings would increase substantially (owner does not have a mortgage). A mortgage is, “a legal agreement by which a bank lends money in exchange for taking title of the debtor’s property. The conveyance of title becomes void upon the payment of debt.” (New Oxford American Dictionary)

If you pay for a property in all cash, there is no need for a mortgage. There is no interest rates when you have no loan. The owner would hold title. 

I like the buy & hold strategy for real estate and stocks. 

I also want to add that by using leverage, that makes the property become debt. If you own the property out right (buying with all cash), then you own an asset. I do not think real estate debt is a bad thing. 

I would also state that I believe this would improve the cost of living. 

@Mark Cruse you’re comparing a successful investment versus a failed investment. I would recommend trying to sell the property that you paid for with all cash. That’s not investment advice. 

I believe buying with all cash is the best investment option. 

@Mark Cruse using a loan will just prolong your return on investment. 

@Melanie P. Securing a loan is not an option for some people also.