Are you considering of using investment funds to purchase a home instead of taking out a mortgage? It’s a strategic move that’s gaining traction in today’s market. With mortgage interest rates hovering around 7%, many are looking for low- or no-interest ways to finance a home. Liquidating investment funds to buy real estate can bypass the financial strain of a mortgage and position investors to benefit from real estate appreciation and the liquidity of their remaining portfolio. However, before making this decision, you have to consider factors such as your age, employment status, and investment time horizon. Consulting a financial advisor to weigh the benefits of immediate homeownership against the opportunity costs is highly recommended. Also, it’s important to be aware of the tax implications and potential penalties, especially when it comes to using retirement funds for a home purchase.
The decision should be tailored to individual financial goals and market conditions to ensure a balanced and forward-thinking strategy. We highly recommend having a financial adviser along with a real estate professional to work on what’s best for you.
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Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
