this video i want to take a look at buying property for cash and what are the advantages
now i've previously done a property video about buying property for cash and you'll find it
somewhere on my channel but i just thought i'd do an updated one today is the first
day of january actually 2021 and i know a lot of people are going to be buying property obviously
and looking to buy property in the coming year and so on and so forth but what i'm going to discuss
here is my observations and sort of general principles around buying property for cash there's
three huge advantages i believe if you are lucky enough and fortunate enough to be a cash buyer
the first heading of advantage would be speed and certainty
firstly you know where you stand in terms of what you can afford you're not waiting for the bank to
look at a valuation survey they're not look you're not looking for the bank to
have a look at your earnings your wage slips your self-employed income for three years five years
you don't have to jump through any hoops for the banker for a lender clearly
that's a big advantage from your perspective but it's a big advantage from the perspective
of the vendor as well because the vendor knows that if you can come to an agreement then you'll
be in a position to move and move quickly on the property you're not waiting for a bank
you don't have to fulfill any requirements in relation to life assurance home insurance
property valuation and so on there's no low impact to vote there's no solicitor to
worry about that either so there's speed obviously involved here under certainty the second part of
the sort of speed and certainty advantage that i see is that if you do come to an arrangement with
vandar then you can move quickly to not just go sailor grade but to complete the purchase
so again the whole thing is going to be shortened if necessary if it suits both parties and
it may or may not suit the vendor but you'd have to assume that if a vendor puts a property on
the market then they'd probably want to sell it fairly quickly and move on to do whatever they're
going to do so that's the first broad heading of advantage i see with a cash buyer the certainty
in speed the second broad advantage or category of advantage is to do with the property itself
and to do with any problems with the property if there's any problems with the property as to its
structural integrity or planning or title or any of those things if there's any problems in general
then if there's a bank involved the bank will have to be advised and the bank will have to approve
because the solicitor acting for the purchaser will be looking to qualify his or her undertaking
to the bank the cash buyer doesn't have that worry doesn't have that concern doesn't have to
worry about what the bank will say or do the cash buyer can overlook the problems to the property
that may not be a wise thing to do but he can if he wants to or she can if she wants to
the problems as they say could do it could be to do with title
could be to do with access could be to do with planning could be to do with the structure of the
property itself could be to do with any work that might be required on the property in the future
all of these things a bank would be concerned about whereas the cash purchaser doesn't
have to worry about those because the cash purchaser is to a great extent his own bank
so you know the property then will have or may have problems for example a very small planning
problem might be a small extension porch or something out the back or out the front
or maybe an unauthorized garden shed or something they're relatively minor planning problems however
there could be bigger planning problems for example the conversion of an attic which doesn't
comply with billing regulations if that's the situation it's a much more serious thing and the
purchaser's solicitor will be right into the bank looking to qualify title so that again problems
of the property is the second broad range of problems or broad broad range of advantages
that i see a cash purchaser having the third broad range of advantages i see with a cash purchaser
will be to do with the estate agent eruption here he or she will recognize if he's a she is
an experienced estate agent the value and the benefit of having a genuine cash
buyer and let's face it the state agent only gets paid when the sale closes just like a solicitor
so it's in the estate agent's interest and it's in the solicitor interest that the sale will close
if you have a cash purchaser then the sale should be able to close
all else being equal and you certainly don't have to worry about the bank pulling the plug
or not being satisfied with the valuation or something of that nature
so the cash purchaser will find that it has a friend in the estate agent even though the
estate agent's client is the vendor even though the estate agent does not act for the purchaser
it's likely that the estate agent will be putting forward the cash purchaser's offer and
the benefits and advantages of dealing with a cash purchaser versus perhaps a person a potential
purchaser who has loan approval or may only have loan approval in principle or may have to get
loan approval so that's the value so three broad categories of advantages for a cash purchaser
certainty and speed he's able to or she's able to move quickly to go sale agreed and to complete the
purchase secondly problems with the property the cash purchaser can overlook them it might be wise
to overlook them uh but he can overlook them and he can remedy them later on if they are capable of
being remedied that may not be the case but that's another day's work that gives you an advantage
uh problems with the property he can look overlooked and the estate agent and the estate
agent essentially will be putting forward with a fair degree of favor the bid and the benefits
a say of working with and dealing with and go on sale agreed with the couch purchaser
hope you find this video useful if you do i'd appreciate if you gave it
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