Cash or Finance? A Buyer's Guide to This Question


In today's robust real estate market buyers are paying cash for their real estate transactions... more than ever. It makes sense, right? Well, maybe it does but not necessarily. Let's look at the options:

We all know, the bulk of today's buyers in Naples are 'Baby Boomers.' After all, this well endowed segment of the buying demographic has a few things going for it, such as dual income retirement funds, kids who are out of college and relatively self-sufficient and a bit of inherited wealth from deceased parents. This combination of income brings cash heavy, northern states buyers to our beautiful, warm, beachfront town with an ability to pay cash for just about any type of real estate they may want. Therefore, if you don't need to get a mortgage loan why would you? Add to that the often tenuous and time consuming process of applying for a loan at a local bank or lending institution. With banking/lending regulations implemented after the 2008 recession getting a loan can be painful and sometimes not worth it to some buyers.

However, if you're patient and have a fairly good credit rating, obtaining a home loan may be the best way to go in the long run. Interest rates are holding steady in the 3+ percent range for 15-30 year fixed rate loans and there is a variety of products out there that can fit just about any buyer profile. Plus, nowadays banks have their 'private' bankers who provide personalized service such as portfolio loans or loans against your financial assets and investments.

When it comes to giving an answer to my buyers as to whether they should pay with cash, credit or a combination of both, the best advise I give my buyers is to consult with their accountant and financial advisor. They are the experts and know their clients financial situation better than anyone. There is one caveat however, some accounting rules vary from state-to-state and it may be advisable to consult with a local tax, estate or planning attorney in order to be in the best buying position possible.

For more informnation on this and any other real estate needs please contact Broker/Associate Mitch Norgart at 239.404.7007 or 239.404.7007.

Mitchell L. Norgart
Broker/Sales Associate
Gulf Coast International Properties
Naples, FL. 
[email protected]


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