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Started By
Message
Cash or mortgage?
Posted on 2/12/19 at 1:35 pm
Posted on 2/12/19 at 1:35 pm
So my wife and I are planning new construction and I'm kicking around whether to pay cash or go with a mortgage.
We have retirement investments which are more than adequate, we have 500k set aside for the house.
Doing this also wont strain our finances as we also have over 250k in savings besides our retirement investments.
Both in out early 30s and this will be our "forever" home.
We have retirement investments which are more than adequate, we have 500k set aside for the house.
Doing this also wont strain our finances as we also have over 250k in savings besides our retirement investments.
Both in out early 30s and this will be our "forever" home.
14
Posted on 2/12/19 at 1:56 pm to TigerDat
Ask your mom and dad since they gave you the money in the first place.
Posted on 2/12/19 at 1:59 pm to TigerDat
Will 500K cover your full construction costs, including land ?
Posted on 2/12/19 at 2:00 pm to birdieman
quote:
Ask your mom and dad since they gave you the money in the first place
Wow so funny. No our parents didnt give us the money dipshit.
Posted on 2/12/19 at 2:01 pm to AUjim
quote:
Will 500K cover your full construction costs, including land
Already have 13 acres and build cost after speaking with a few contractors should be in the 400-450 range
Posted on 2/12/19 at 2:02 pm to TigerDat
I'd go for a mortgage on at least some of it. A house is illiquid....all your cash tied up in one place. Depending on the market & location, it can also take a while to sell a $500K house, esp if it's semi-rural and there are few buyers at that pricing point (or it's overbuilt for the area).
If you've got that much cash, carrying a mortgage for a while won't matter, and you'll keep your nest egg working for you rather than sitting in a house.
If you've got that much cash, carrying a mortgage for a while won't matter, and you'll keep your nest egg working for you rather than sitting in a house.
Posted on 2/12/19 at 2:09 pm to TigerDat
When I built, I used cash for land and a lot of add ons that wouldn’t necessarily add value to the home if/when we decide to sell (not likely, but you never know).
Took a 15 year fixed rate mortgage out on the rest.
This was the first home I’ve ever built, and had a great architect help me plan for future add ons.
Took a 15 year fixed rate mortgage out on the rest.
This was the first home I’ve ever built, and had a great architect help me plan for future add ons.
This post was edited on 2/12/19 at 5:43 pm
Posted on 2/12/19 at 2:23 pm to TigerDat
Damn 7 downvotes on a question. Bunch of jealous people here or something?
Posted on 2/12/19 at 2:23 pm to DuckManiak
Thank you hubgryone and duckmaniak for actual input
Posted on 2/12/19 at 2:29 pm to TigerDat
What do you do for a living to have $750k in cash set aside @31-32?
I may be interested in a career change.
I may be interested in a career change.
Posted on 2/12/19 at 2:32 pm to Displaced
quote:
What do you do for a living to have $750k in cash set aside @31-32?
I may be interested in a career change
Was in a very traumatic accident at work. Wouldn't wish it on anyone
Posted on 2/12/19 at 2:34 pm to TigerDat
OK, so I see this cash is due to a settlement.
Are you able to work? Wife? What does your income potential look like going forward?
One-time cash being used for one-time purchases isn't a terrible strategy, but I'm curious about your earning potential and how that affects the on-going costs of a 500K house.
Are you able to work? Wife? What does your income potential look like going forward?
One-time cash being used for one-time purchases isn't a terrible strategy, but I'm curious about your earning potential and how that affects the on-going costs of a 500K house.
This post was edited on 2/12/19 at 2:37 pm
Posted on 2/12/19 at 2:34 pm to TigerDat
I would use the 750K to work for me, and mortgage the house.
Posted on 2/12/19 at 2:35 pm to LSUFanHouston
quote:
This seems like a troll thread which explains the downvotes. If it's not... I'm very curious
Read previous post.
Bad accident.
Posted on 2/12/19 at 2:37 pm to bawbarn
quote:
would use the 750K to work for me, and mortgage the house
That's how I normally look at things but the savings in interest would be pretty big is my thought.
Already have an even larger amount in investments for the future but I could also see the advantage of investing more
Posted on 2/12/19 at 2:41 pm to LSUFanHouston
quote:
Are you able to work? Wife? What does your income potential look like going forward?
Yes still able to work. Wife works as well
At the moment I'm still employed with the same company unfortunately make a little less yearly because I'm in a diff position. Future plans is to get out on my own with my own gig and my earning will go up
Posted on 2/12/19 at 2:56 pm to TigerDat
you can make a nice fat DP and use low interest rates for a nice PITI note. milk the mortgage. let other money work for you. pay everything else off tho.
10 to 15 years down road then re exmine if you want to pay off.
you can send my consultation fee to my paypal account
moneymaker@yahoo.com
10 to 15 years down road then re exmine if you want to pay off.
you can send my consultation fee to my paypal account
moneymaker@yahoo.com
This post was edited on 2/12/19 at 2:59 pm
Posted on 2/12/19 at 3:02 pm to Fat Bastard
quote:
you can make a nice fat DP and use low interest rates for a nice PITI note. milk the mortgage. let other money work for you. pay everything else off tho
That's kinda been the plan, but after doing so reading was thinking maybe full cash option.
Think we may just stay with that plan and like you said revisit in 10-15 years.
Posted on 2/12/19 at 3:10 pm to TigerDat
quote:
That's kinda been the plan, but after doing so reading was thinking maybe full cash option.
i am ok with that only with a much cheaper property than what you are buying. what is the cost? 500k?
quote:
Think we may just stay with that plan and like you said revisit in 10-15 years.
get a 30 year and do exactly that. or pay extra towards principal for 15 years and it may be paid off then anyway. that way you are not stuck with 15 year amortization. However, it almost sounds like you would be good with a 15 year mortgage also. less interest! sounds like you would have cash easily to pay notes. just see what works best for you. I just cannot see myself dropping that much cash into a non cash flowing investment.
This post was edited on 2/12/19 at 3:12 pm
Posted on 2/12/19 at 4:00 pm to TigerDat
What about putting a big down payment, then get a 15 year note?
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