If you can afford an EMI with ease, its wise to invest in a property. A pays a rent for a property worth Rs 70,000,00. Whereas B has availed a home loan of Rs 50,000,00 for the same property. The rent increases at the rate of 10% p.a. so the rent becomes Rs 2,37,000 the next year.
Moreover, do dealerships prefer cash?
In most cases, car dealerships that are focused on the sale of their offered vehicles are the ones that tend to prefer cash because it's a quick way to close the deal. Sellers that prefer cash-based transactions usually offer discounts or other promotions that are not available to credit payments.
Also Know, is it better to finance through dealer or bank?
Benefits of Your Bank That's especially true if you finance through a small credit union or a local bank. The bank's main advantage is that it doesn't mark up its interest rates. Since you're dealing directly with the lender, there's no middleman — the dealer — and the rates are likely to be better.
Is it better to buy or finance?
The advantage to financing is that you'll usually end up with a better car than you can if you're paying with cash. The only drawback is that you'll need to make monthly payments in order to pay off the loan that allowed you to buy the newer, more expensive vehicle.
What happens if I don't have a downpayment for a house?
You can only get a mortgage with no down payment if you take out a government-backed loan. You may want to get a government-backed FHA loan or a conventional mortgage if you find out you don't meet the qualifications for a USDA loan or a VA loan. Both of these options will allow you to make a low down payment.