Do you desire to own a luxurious home located in a desirable location, constructed with high-end materials, and meeting exceptional architectural requirements? Are you specifically looking for a high-end property with larger floor plans, a lavish and elegant exterior, and a spa-like bathroom?
Finding such a dream home may not be a hassle. However, it can cost a fortune to procure such lavishness and exceptional value. Read on to know three primary ways to pay for your dream, a high-end home.
Recent stats indicate that approximately 36% of home purchases in 2021 were paid in cash. The average price of luxury homes is $6.5 million, 12 percent less if you pay in cash. When you pay for your high-end home in cash, you save on the interest payments and closing costs. In addition, you avoid the burden of making monthly payments, stay debt-free, and strengthen your credit rating.
A luxury home cash purchase gives you an edge over other buyers, mostly when the seller wants to make a quick sale. You call the shots because you’re not relying on loans to finance your new home. Sadly, it can take years of self-denial and commitment to save enough money to buy a high-end home.
Unless you luckily win a tender or contract worth that amount or have accrued enough savings over time, it would require an aggressive saving plan and self-denial to save $6.5 million. Remember the following pointers when saving to buy your dream luxury home:
- Direct most of your paycheck to your savings account
- Reduce your satellite and cable TV expenditure
- Budget for every coin you earn
- Do not spend lavishly
- Relocate to a cheaper rental home
Secure a Private Loan
Another way to secure one of the luxury apartments in North Dallas is by acquiring a private loan to pay for the house in cash. If you do not fancy a mortgage or your credit rating is too low to secure a mortgage loan, you can consider seeking help from peer-to-peer or private investment lenders. Private lenders demand less from their customers, but they often charge higher interest rates. The high-interest rates of up to 20 percent cater to the high risk of lending money to clients with low credit ratings.
If you are not ready to deal with high-interest rates and the trouble of being pushed around by a private lender, you can also secure a loan from your moneyed friends or family members. However, this route is only possible if you have already saved a bigger percentage of the amount and would want a small loan to top it up. If all these fails, you might want to consider private home loans as they offer flexible payment terms and affordable interest rates.
Secure Owner Financing
Some property developers and owners offer financing to qualifying buyers. The owner-financing option uses the same mortgage module but offers lenient and friendly payment terms and interest rates. It works such that the property buyer pays the monthly dues to the property owners on the agreed dates.
Property owners offering this kind of financing are often established in the industry and know the legalities and specifics to be observed to avoid issues that may pop up in the future. The funding is usually documented in writing through a legal real estate purchase agreement signed by both parties.
Like mortgages, you will not get the title deed for your home until you pay the whole lump sum. However, before you make the final payment, you will be given a warranty deed that acknowledges you as the property owner. Finding a property owner ready to sell their luxury home through this kind of agreement won’t be a walk in the park.
Whichever route you take to become a proud owner of a high-end home, ensure you get everything documented in writing. Get your lawyer to clarify anything you do not understand to avoid being taken for a ride by cunny property developers or home owners. Paying your luxury home in cash is the most recommended way out but that’s if you have the cash ready. If you cannot afford the home in cash, you should consider getting loans from private lenders or opt for owner financing.
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