Buying a home without a loan means you won't have to deal with mortgage payments, interest rates, or the long-term financial commitment that comes with a mortgage.
Avoiding a mortgage means you won't pay the interest that accumulates over the life of a loan. This can potentially save you a significant amount of money.
The home-buying process can be quicker when you don't have to go through the mortgage approval process. This can be advantageous in competitive real estate markets.
Sellers might prefer cash offers since they don't have to worry about a buyer's mortgage getting approved, which could give you an advantage in negotiations.
Paying for a home in cash ties up a large portion of your liquid capital. This could limit your ability to invest in other opportunities or handle unexpected expenses.
If your cash is tied up in a property, you might miss out on potential investments that could yield higher returns.
Investing all your available funds in a single property can lack diversification, which is a key principle of sound financial planning.
Mortgage interest is often tax-deductible, providing potential tax benefits that you would miss out on by not having a mortgage.
There's an opportunity cost to using a large sum of money for a home purchase. You might have been able to use that money for other purposes that align with your financial goals.