Buying your first home with a mortgage or cash?

Selling home is not a Hercules task

Paying in cash avoids taking on a debt with a bank , but this choice can leave little liquidity available. Conversely, with the mortgage you pay little by little – so it is certainly a more sustainable solution for most Italian families. On the other hand, however , the commitment to the bank can take a very long time : the mortgages can last from 5 to 30 years during which you will also have to pay the interest expense

Many today choose to buy part of the house in cash and part with a mortgage, so as to be able to maintain liquidity to face notary fees , taxes and furnishings, in addition to daily expenses and unexpected ones that can always happen.

First home purchase in cash: advantages

The first condition for buying a house by paying in cash is obviously economic availability : you must have a lot of money aside or you must be able to count on a loan from a family member (parents or grandparents).

Being able to choose it, this solution is advantageous because it avoids having a debt with the bank for many years .

Furthermore, paying the house in cash has lower costs – compared to the mortgage – because you do not have to pay interest to the bank and fees and taxes to the notary and the state. So, in fact, the house costs less than buying with a mortgage.

From the point of view of the management of the family economy, although the mortgage obliges us to organize family expenses in the best possible way, it also allows us not to affect any savings accumulated to manage unexpected expenses.