Cash is king when buying a house. I always use cash to buy a house and the builder throws in bunch of upgrades for free.
Large builder margins can easily be 15% ~ $50,000 on a $350,000 house.
Absolutely. Cash is the way to go. As I mentioned in my previous post, starter homes in my area are close to a million. And there are many, many people who just dip into their checking account, write a million dollar check and scoop up a house for themselves.
My only concern is that I feel there are a lot of young working people who can’t actually pay cash for a house today (they probably buy too much coffee at Starbucks).
I think we need to find a way to push the institutional investors out and somehow find a way for ordinary working Americans to reach for that American Dream. Or we could just totally screw our children and grandchildren and tell ‘em “Screw you. I got mine.”