| by Kenneth Chase | 7 comments

Buying Property For Cash-What Are the Advantages (If Any)?

this video that are making from
Amsterdam always my holiday weekend and I’m away for the weekend here was a
Pride Festival on in the city it’s very exciting
in a city just have to do a walking tour there no but in this video I wanted to
touch upon a question that’s been raised there on my youtube channel I just had a
look at this morning over breakfast and that was the question of buying property
for cash what advantage is there or is only advantage but clearly there is an
advantage and the advantages are really twofold one when you go to buy your
property now you’re going to be going to the auctioneer and they be able to say
to the option here we are cash buyers ran a cash buyer the significance of
that is the auctioneer can tell the vendor that these people if you accept
their offer is are able to move quickly on the purchase it’s not dependent upon
a bank fighting finance there’s no requirement for them to get life cover
for example there’s no evaluation of courage for a bank there’s no hoops
through which to have to jump the cash buyers and if they want to go ahead and
if you do deal with them then you’re off to the races
that’s gonna put you in a slightly strong position slightly stronger
position with the auctioneer because to say the auctioneer can go to the vendors
and say this can be a quick deal fast deal and you gotta be waiting around
beating around the bush wearing a self-evaluation server for the bank
perhaps the issued or an approver sometimes known approval is only issue
in principle and the the never of offer and so on has to be has to be issued and
that can take a player and I can be frustrating for somebody who’s selling
their property I know things have gotten sale agree that’s the first thing second
thing is our second reason higher cash buyer is in a stronger position would be
does if there’s any little imperfections or infirmities in the property from a
planning perspective or from a title perspective the purchaser is electronics
courses are can see it to the auctioneer or can see it to their so this is or
other look I’m happy enough to go ahead they understand the risks I understand
the difficulty they understand the imperfections or infirmity in title or
in planning both in mechanic’s hash buyer you don’t have to worry about a
bank you don’t have to worry about giving an undertaking to a bank you
don’t have to worry about giving a certificate of title to the bike and
therefore the solicitor talking of the go-ahead invited the purchaser who’s
instructing them knows what the issue is and are happy to proceed so there are
two advantages if you are charged buyer one you can move quickly and you can
satisfy the option here that you can move quickly and you might get a better
deal because as I say the vendor doesn’t have to wait around for Bank approval
and for any other potential purchasers and to any infirmities are imperfections
you can say to your own solicitor look with a another I
know what’s going on and the cash buyer I’m happy enough I know that no planning
for the conservatory or for whatever happy to go ahead there are two
advantages of being Ashburn hope you find this video useful and I would
recommend Amsterdam is a lovely little city nice taste walk around Katy canals
just on a walking tour there this mornin really enjoyed it and as I said it’s a
real buzz around the place a real cause of tolerance of liberalism of all sorts
of stuff good place I must say like it’s not the most striking from an
architecture or Wow part of you in terms of architecture has a good vibe has a
good feel about us and hope you find this video useful if you do give it a
thumbs up down below thanks a lot


Sianna MacDonald

Aug 8, 2019, 7:38 am Reply

Terry, thanks so much for this. We're coming to Ireland in a few weeks to purchase a house and will be cash buyers. This is really helpful, thanks again. (Trish MacDonnell)

Dee Fresher

Aug 8, 2019, 9:48 am Reply

Thanks Terry, great info simplified, I just discovered your channel recently and love it so keep it up the good work. ?

Astonish Astral

Aug 8, 2019, 11:09 am Reply

Thanks terry , have a great day and then weekend ?

Employment Law Cork

Aug 8, 2019, 5:19 pm Reply

Excellent effort, Terry. Your videos are so helpful and relevant!


Aug 8, 2019, 5:10 pm Reply

Great video!!
Cash buyers are definitely in a more advantageous position in any market.
But I would mention that for long term investors leverage can be a great tool to achieve capital growth.
Basic example:
if you had 200k in cash to invest and there were 2 houses for 200k. You could use leverage from a bank at 50% each. 100k deposit plus 100k mortgage. Due to the 50% LTV ratio you can also negotiate the interest rate on the mortgage as the risk to the bank is less than someone with a 75% LTV.

Rent both properties this allows 2 rental yields and good cashflow month to month…Plus capital growth on 2 properties in the long term.
This strategy is particularly effective in a depressed market where property prices are falling/ currently low. It's like a 2 for 1 deal.
This is because of the inflation effect on money. Because inflation is eroding the value of money overtime, the value of the overall debt is eroded with time. However if you get a good deal on the 2 properties, their value will rise.

It all comes down to personal choice and each person's long term and short term goals.

Karim longuar

Sep 9, 2019, 9:06 pm Reply

Is buying a property in cash is beneficial to rent ??? Also is it a good time to buy?

nguyenxuan nam

Sep 9, 2019, 1:59 am Reply

Thnk u for your information. I will arrive ireland next year. As a newcomer, could i buy a house 50% by cash and 50 % by mortgage?

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