What does it mean to pay for a house in all cash?


Buying a property in Kolkata is one of the best investment decisions that an individual can take when it comes to real estate. This is because the city of Kolkata not only has the distinction of being of one of the most affordable cities to live in India but also has excellent infrastructure. It is also great culturally. In fact, in the last 5 years it has been the fastest growing city when it comes to home valuing 50 lakhs or less. One can find such affordable home readily on Housing.com, India’s leading online property website that caters to the needs of all sections of society.

Housing has a unique distinction of being the first site to start the trend of hosting only verified and genuine properties on its web portal and the city of Kolkata is no different. It features thousands of new and resale properties in this region, all of which are 100% confirmed authentic and substantiated assets. One can get some of the finest properties available in the market exclusively on Housing.com. Having said this, the actual transaction is offline and there is no interference by Housing, unless the help is needed by either the buyer or seller to execute the deal. The guidance or help can be for legal stuff, administrative or for mortgage. Since, the actual deals take place offline, the decision with regards to mode and duration of payment is totally dependent upon the terms and conditions agreed between the buyer and the seller. Many times buyers prefer to pay for a house in all cash and this how it can be helpful –

Bigger discount

One thing with cash payments is for sure and that is the buyers stand to gain some good discounts. In general, the discount for cash payment ranges from 5% to 15% on the transaction value and differs from case to case. In cash transactions, the payments are mostly done upfront. Nonetheless, one must always be aware of the legal hassles and must take into account that paying bearer cheque or physical cash worth lakhs of rupees is a crime. Cash payment in real estate only means making the payment from the earnings and the mode of payment can be net banking, demand draft, cross cheque, etc.

Complete ownership

Making cash payment all by self means that an individual has a complete ownership of the home and there is no fear of the rights being lost if the equated monthly installment (EMI) is not paid for few months. This is in itself is a big relief!

No money is lost

The home loans even though are a help to property purchasers, they come at a cost. The repayment amount on these loans can easily be more than double the amount of the sanctioned sum in 20 to 25 years period. This basically means than a person who takes a loan of 50 lakh rupees for a period of 25 years at the rate of 10.00% will eventually end up repaying more than 1 crore rupees. And hence, buying a house in cash makes all the more sense.

Conclusion – Cash payment is a good option for home buying but its needs judicious execution and impeccable guidance, preferably by property experts like Housing.com. After all, the transaction worth few lakhs or few crores need to be well thought off beforehand rather than repenting at a latter stage.

Source – http://www.wsj.com/articles/SB1020269229643159720

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