People haven’t been parking their money in investment properties for some time now.
Economy is shot and real estate agents in secondhome destinations like Palm Beach and Palm Springs have complained of being particularly badly hit.
These aren’t families where putting money up wards a house will mean taking it away from somewhere else where it might be needed. These aren’t families that struggle for money. And therefore the surprising thing about these home sales had been way they are paid for. Anyway, while staying clear of tiresome mortgages has become an important consideration when buying a second home, in families that have a decent bit of discretionary income. Only one bright spot on their otherwise dull professional calendars had been occasional sale made to customers interested in buying a second home for themselves. Let me tell you something.
Add to that fact that rates have fallen on kind of homes that people look to for their ‘second home’ purchases -waterfront homes and so on -and paying cash for homes doesn’t seem like this kind of a far out idea anymore.
So banks are reporting that they’ve approved less than half as many mortgages this year as they did before torecession.
You don’t want to wait for a decision by tobanks, or pay closing costs -you get a great deal of negotiating power when you hold actual money in your hands and can speak authoritatively about what you think about price you’re being offered.
What does it do for someone to pay cash for homes they buy? Top-notch part of going with cash when you buy a home is that you are left without debt or mortgage interest payments to deal with. Why, sellers on higher side of market with homes to sell, insist these days on cashonly deals. Notice, if you don’t need a mortgage, you won’t find yourself hanging around any bank in your neighborhood doing best in order to get a little understanding -which, virtually, can notoriously difficult to come by, in order to As a result, they need to reassure themselves that they’re dealing with people who are wealthy enough.