How to buy a new house without going into debt
As we grow up and picture our lives, we often think about getting married, having kids, and owning a home. One thing we don’t focus on is how we are going to pay for that home – simply because society tells us you pay for a home through a mortgage (loan) from a bank or lending company.
With generations being more aware of the financial hardships that come with large amounts of debt, they’re getting savvier about finding ways to pay for things they want without getting loans to do so.
So, how can you become savvy enough to purchase a new house without going into debt? Let’s tackle a few ways together.
- Live with family – rent-free or at a discounted price. One of the easiest ways to save cash is by living with family. If you live with your parents, you may be able to work a deal out with them for you to pay rent in chores, by purchasing groceries, or even by simply paying a small ‘rent’ of say $100. Get creative and negotiate ways for you to save money without sacrificing thousands on rent each month.
- Purchase a fixer upper. Another great way to purchase a new house with cash instead of debt is by purchasing a fixer-upper and living in it while you remodel the home. Depending on where you live, you may be able to purchase the fixer-upper for the price you’d pay as a down payment on a mortgage.
- Downsize from the beginning. It’s easy to think we need a home that’s large, has 7 bathrooms, or a huge backyard, but in reality, if you purchase a new house that fits your lifestyle needs now – not in the future – you have a better chance at slashing asking prices and getting something that’s much cheaper.
- Pay as you go. An easy way to pay for a home that you don’t have to go into debt for is by purchasing something outright that’s maybe smaller than you initially preferred, or that’s a fixer-upper, and each month using what you’re saving in a mortgage payment to go towards fixing up the home.