The Big Move: ‘Home prices where I live are close to $600,000.’ Is it a smart move to buy a house with all-cash — or better to take out a mortgage?

by | Aug 26, 2022 | Stock Market

Dear Big Move, I’ve recently been thinking about purchasing my first home at 35.  I have a nest egg of about $1.8 million that I’ve accrued over the past 14 years. This money is completely invested in a select number of stocks that have done extremely well during this time. 

About $400,000 is in profits through investments, post-tax, and $120,000 in savings. I’ve also kept my vehicles low-cost and have lived semi-transiently over the past six years, while not paying rent. My total income between dividends and employment is around $175,000. I’m now in a serious relationship with my significant other who has several children. We would need at least four bedrooms and two baths as our current single bath setup is too tight.  Being that mortgage rates are so high, and average home prices where I live are close to $600,000, is it a smart move to buy a house with all-cash, or better to take out a mortgage? Nomadic No More ‘The Big Move’ is a MarketWatch column looking at the ins and outs of real estate, from navigating the search for a new home to applying for a mortgage.Dear Nomadic No More, Going in with all-cash may not be the best idea at this point, given your uncertainty about where the market is going. I’d say go in for a 15-year fixed-rate mortgage with a bigger down payment. “It’s always better if you can use someone else’s money to buy property because this allows you to use your cash for other investments,” Clint Coons, founder of Anderson Business Advisors, to …

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