# are there special considerations for somerone buying a house outright



## qc_riderfan87 (Apr 30, 2011)

Here's my situation. 

I got about CDN $105,000 in cash.
Unemployed, I'm committed to my art right now but it doesn't pay.

Monthly expenses are

1200$ for rent
300$ for food
350$ for gas/power/phone/cell

I have a 20,000 car I own outright, I can use that as collateral if I need to. 

so conservatively... 120,000 to spend on a house.

The houses in thiis price range aren't too good you have to live in the hood. 

I decided it doesn't make sense to rent it's just wasted money and I'm only getting 2% interest at the bank. As much as I hate moving, especially to a not good area, and probably alot smaller place then my split level 1000 sq ft townhouse in a -great- area.

I hired a realtor, I told him I want a deal! lol

Should time be a factor? I don't want to rush but I also don't want to wait months to find a deal... 

I want a half decent house, ready to move in, which I can live in and hold for 5 years and get a house in the area I'm living in now average price is 375,000 for a 3 bed, 2 bath. 

So with all that being said, is there any special considerations one who is paying all cash should make? 

What other questions should I be asking???


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## dogcom (May 23, 2009)

Everyone needs an income at some point so you need that to live longer term.

I wouldn't rush to buy in a bad area because you might get all your art stolen. I also wouldn't rush in at this point with the possibility of a recession or slowdown coming and you don't have an income which means you may have to sell in desperation. 

Get your life together have solid plans to make some money either with your art or something else. Or why can't you do both like a lot of people do and that is work and do the art thing as more of a part time thing.


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## marina628 (Dec 14, 2010)

I would sit where you are give yourself another year to 18 months to develop your art , if nothing happens by then you should adjust your life so you are working and bringing in money to cover your living expenses while working 'part time ' on your art. My daughter is an artist so i understand how you may have to spend hours doing nothing to get an hour of good work in.Definitely don't even attempt to buy a house with no source of income.


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## Potato (Apr 3, 2009)

There are other cash costs to owning (utilities/maintenance/condo fees/property taxes) even without a mortgage, plus the rest of your budget (food, etc) so if you're unemployed and use up all your capital in the purchase, what will you live on?

If you end up having to work at something other than your art, how sure are you that it would be in the same city/area where you buy the house? As a renter you're free to move to chase a job...


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## Plugging Along (Jan 3, 2011)

I am a little confused. Are you saying you have $120K to buy a house outright, or that is your savings, and you would like to buy a $375K house out right?

Honestly, I think buying a house, while you have no income even if it's outright, is a really risky thing to do. I think the general rule is that you should NOT buy a house unless you have an income to support the maintenance and operations AND your living for at least the time you plan to not be working.


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## Cal (Jun 17, 2009)

One question I would be asking is how am I going to pay for property taxes/repairs/furnishings with no income.


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## MikeT (Feb 16, 2010)

"wasting money on rent" is a line of b*llshit that realtors use to sell houses to people who can't afford them.

You can't afford a house yet. Get yourself employed full-time and then buy if you want.


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## the-royal-mail (Dec 11, 2009)

^ I agree with MikeT.

Also, $105K isn't really as much money as it seems. If you organize that money into 4 tiers it will be there when you need it in case of emergency with some for a down payment on a nice place if you really want one once you get back working.

There is no law that says every individual must own a house. If you're unemployed the bank won't give you a mortgage anyway. But even if they would, you take away your mobility when you commit yourself to a 25 year mortgage.

Living in a bad neighborhood for cheap property is not something I would ever choose to do.


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## financialnoob (Feb 26, 2011)

MikeT said:


> "wasting money on rent" is a line of b*llshit that realtors use to sell houses to people who can't afford them.


I love this line. I wish there was a way to get this line engraved and framed and put at the top of the Real Estate sub-forum.


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## MoneyGal (Apr 24, 2009)

I personally like "you can rent space, or you can rent money" 

(and then there would need to be some kind of proviso about "and which is best for you depends on your personal circumstances and macroeconomic factors out of your control...don't assume your model captures all the relevant factors"...etc.)


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## MikeT (Feb 16, 2010)

Sorry I was a bit short there. It's true, but I could have expanded a bit and I was tired. Figure out your goals. You sound like you are all over the place. What is the priority for you? Your art? Or home ownership? 

If you really want to spend time on your art, then reduce your expenses as much as possible. Cell phone? No need. Cable tv? Why, just entertain yourself with your artistic passions. Maybe get a part-time job just to sustain yourself (two-three days a week maybe?).

Buying a house will not help your art goals. Keep your eye on the prize, don't get distracted by realtors and the crap they spew.

If home ownership is your goal you have a great down payment already. Get yourself a full-time job and find a nice place to buy.

Doing half of one and half of the other will give you half as*ed art and a half as*ed place to live.


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## Berubeland (Sep 6, 2009)

One benefit of paying all cash for a property is that you can buy a property that is not mortgageable, something that is severely distressed perhaps with no water, no sewer, land or something like that.


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## Montrealer (Sep 13, 2010)

There are two factors when paying cash and looking for a deal:

You get a deal on a property when you...

1) Pay cash for the property 
2) Have little to no conditions
3) Are willing to notarize within 30 days or less 

Good luck with $105,000.00 though, that can't even buy a condo outright in some parts of the country.


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