Pay cash for an investment or finance it?
Pay cash for an investment or finance it?
A few weeks ago, I saw a discussion on Facebook that asked the age old question, is it better to purchase an investment with a mortgage or all cash? I decided I should ask the REAL experts on the subject.
The totally fictional scenario is:
- A married couple, with excellent credit,
- Has $100,000 in savings and
- They are looking at a $90,000 house (this is their final loan amount and, for the sake of math and the story, all other costs are covered by the seller).
Do they pay all cash for the house or put a 20% ($18,000) down payment and take out a $72,000 mortgage, then invest the rest?