Cash or Credit: Which is a Better Type of Payment When Buying a Loft?

Do you have a plan to buy a new Loft? If you are thinking of buying a new Loft by paying in full cash, you should think again. The same thing applies if you are planning to purchase it with a mortgage. 

There are different factors that you should consider first in buying a Loft, whether through cash or credit. Since there is no exact and better method, you must weigh in all their respective pros and cons to make a better decision. 

To help you out, we listed their advantages and drawbacks that you need to study first before jumping into a conclusion. 

Key factors of paying in cash 

If you come to think of it, paying a new Loft in full cash seems to be a far-fetched idea, but various advantages of this plan might convince you to buy a new Loft in cash. 

Here are some of them: 

No need to handle monthly repayments

This has to be the best convincing factor why many potential home buyers wanted to buy a new house in full cash. When you have your home on a mortgage plan, a significant portion of your monthly earnings goes directly to it. But if you paid in full, you don’t have to worry about the monthly repayments anymore. 

Interests turn to be savings

Another good thing about paying in full cash is turning the possible added interest that is compounded in your mortgage plan to savings. This gives any homeowners an advantage, especially in the mortgage interest rate. The possibility of turning the interest rate to savings and making use of it for other investments is a great advantage.

Cash buyers are attractive to sellers

Cash sellers look for cash buyers, and that’s the ratio present in the home market. If you are a cash buyer, you get the upper hand among potential buyers. Also, it increases your negotiating power when it comes to purchasing the property. 

Drawbacks in paying cash 

Paying in full cash might sound perfect, but there are also drawbacks if you are going to traverse on this road, and here are a few you need to think about. 

Loss of tax advantage 

You might not be paying monthly repayments with interest, but surely you are not exempted from paying all the compounded taxes when you purchase your new home. Taking out a cash purchase excludes you from enjoying tax deductions when compared to having a mortgage. 

No liquidity 

It is worth noting that after you made a full cash purchase of your new home, you still have remaining assets that can be utilized for other expenses. Remember that there are still other expenses that you need to handle after buying your new loft, such as homeowner’s insurance, property taxes, and the homeowner’s dues. 

If you have a comfortable cushion of cash, even after making the purchase, this would be less than your problems. 

Key factors of turning into Loft financing 

Loft financing has always been the trend in getting a new home, but what makes home financing a good option for a potential homeowner? Here are some of the reasons.

Flexibility and liquidity 

Even if you have all the purchasing power to pay in full cash, the flexibility and the liquidity of financing your loft allows you to enjoy both of it. You don’t need to put a tremendous amount of money into one asset, and that’s what home financing can do to your financial status. 

Shopping for a mortgage can be a tedious task, but lending firms such as CreditNinja can offer you professional assistance to process it efficiently. 

Take benefit from tax implications

When you file for a mortgage plan, you can enjoy the tax deductions that come with it. Even though having a tax-deductible is only a small factor, having less responsibility in paying taxes never hurts. 

Drawbacks of home financing 

When there are reasonable factors that you can benefit from home financing, there might as well drawbacks that you need to look out for. 

Difficulty in securing a mortgage 

While Loft financing is available, it doesn’t necessarily mean that it is easy to secure a loan. Other members of the lending industry impose stringent security in choosing who’s worthy of getting a loan. This makes it difficult for potential homeowners to secure a slot and eventually lose their prospected property along the way (if and if they don’t have the cash to purchase it in full).

Hassle monthly repayments 

It is no doubt that every homeowner’s greatest struggle is to handle the monthly repayments of their Loft financing. Some face a lot of trouble to make sure they meet the deadline and not to incur additional interest. Furthermore, if faced with a financial crisis like losing a job or other unfortunate events, monthly repayments are another burden to carry. 


As there is no right or wrong on how you want to purchase your new home, it is still worth taking time to handle and weigh all the factors that concern your decision-making. While the two can offer you significant advantages, there are also substantial drawbacks that you need to be aware of. Hence, it would help if you took the time before making big decisions that will significantly affect your financial stability. 

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