By admin 
With a well-stocked bank account, you may be lucky enough to have to ask yourself the question of a real estate purchase in cash or on credit. Whether it is to buy your main residence or for a rental investment, even if you have the financial resources, the question of a real estate purchase without a mortgage is not so quickly answered . Indeed, it will depend on several financial factors that we will address, but also psychological: some people may have a hard time dealing with the idea of debt.
So, when choosing, should you make a property purchase in cash or with a mortgage?
We will look together at the advantages and disadvantages of a cash property purchase, distinguishing between the purchase of a primary residence and a rental investment. Let’s start with the advantages of buying your RP without a loan…
What is a cash real estate purchase?
A cash real estate purchase means purchasing a property by paying the entire sale price in one transaction, without resorting to a mortgage.
This method of payment in “cash” implies that the buyer has the necessary funds to cover the total cost of the property, including additional costs such as transfer taxes, notary fees, and other expenses related to the acquisition.
What are the advantages of buying your house or apartment in cash?
Buying your primary residence in cash has undeniable advantages arising from the absence of debt. In addition to reassuring the seller about your ability to complete the sale, you save on the interest on the property loan and the cost of borrower insurance.
The absence of a suspensive loan condition, an asset for winning sales
If you have ever been a seller, you will certainly remember the uncertainty that weighed on you throughout the entire period of the sales agreement, particularly due to the suspensive condition of a loan in favor of the buyer.
Indeed, since the vast majority of real estate purchases are made on credit, most sales agreements can only result in an actual sale from the moment the buyer obtains a loan offer from the bank . In other words, following the sales agreement, the seller will have to immobilize his property while waiting for you to obtain your financing without having the certainty of selling it to you. Failing that, he will have to find another buyer, pushing back the sale date by at least 2 additional months…
From the moment you buy in cash, you can waive the suspensive condition and, if you choose, the seller will always favor cash buyers . In areas with high real estate tension (Paris and Île-de-France), making a cash real estate purchase will allow you to stand out from the multitude of buyers.
Note : If you plan to borrow for your property purchase, Helloprêt can provide you with a financing certificate to reassure the seller about your ability to obtain the necessary financing. A significant competitive advantage compared to other buyers on credit who do not have one 😉
A gain in peace of mind for a cash real estate purchase
Let’s not lie to ourselves, getting into debt for 20 years can quickly make your head spin. Since no one knows what the future holds, having a monthly loan payment to repay over such a long period can worry more than one person.
So, buying your apartment or house without a loan allows you to avoid this monthly axe.
However, tell yourself that a monthly loan payment is similar to rent: you have to live somewhere! The advantage of a loan is that you capitalize on your accommodation, whereas rent is an expense, a dead loss.
Additionally, if you borrow and have the equivalent of the loan in your account, the risk of not being able to pay your monthly loan payments should not be a major concern.
Speed up the sale with cash purchase
Simplified banking procedures: When a purchase is made in cash, the buyer does not need to go through the lengthy process of applying for credit. This includes saving all the steps involved in obtaining a loan, such as checking creditworthiness, negotiating loan terms, and waiting for loan approval.
Faster Transaction: Without the delays of loan approval, the transaction process can be significantly accelerated. Cash transactions can often be completed as soon as legal checks and inspections are completed, and the parties have agreed on terms.