We have the cash to purchase a $300,000 active adult retirement home, is this a good time to buy a home?
Answers | 3
Can you elaborate on your understanding of "a good time?"
As I understand your question, you are considering paying cash for a $300k retirement home. Is this correct? Well, as an Investment Manager, I love making equity investments -or in this case buying a home with cash and no mortgage (debt financing). Well done.
Now. let's dig a bit deeper and make certain that after buying this great investment -you have done your homework on this house and determined the intrinsic value meets/exceeds your needs, right?
Do you have adequate cash flow to cover your expenses? Lot's of possibilities here.
Using $300K, this could bring in around $30-60K in cash flow on a yearly basis. (using a simple 10-20%). Of course this is before taxes and if $300k is all you have, Well, owning the house debt free and having enough cash flow for lifestyle needs may not yield the lifestyle you deserve. We call this house rich & cash poor. We prefer you to be house rich, cash rich & debt free. You decide their order of importance?
Feel free to contact us directly to discuss your situation in greater detail. No obligation. We also have plenty of no cost educational material designed to help get you where you need to be financially. We look for low risk and high return.
It's not what you make, It's what you keep that determine your lifestyle