Should I Pay Cash or Get a Loan?

Here’s why you should get a loan if you can afford to buy with cash.

The data we have tells us that over 20% of home sales are bought with cash. I often get asked about whether one should pay in cash for a house or get a loan, so today I want to answer that question. 

If you pay in cash for a house, you’re not taking advantage of the current low interest rates. Right now, they are at about 3.25%, so it’s a good time to lock in that rate. Interest rates will likely rise to 4.5% over the next six months. Meanwhile, the rate of appreciation in Scottsdale is about 6% per year, so if you paid cash, you’d be losing money. If you have enough money to pay for one house in cash, you should have no problem getting a loan to buy two houses and put 50% down or buy four and put 25% down.

If you have any questions, visit my website and reach out to me by phone or email. I look forward to hearing from you.