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Is it more convenient to buy a house by paying for it in cash or by opening a mortgage? What are the advantages and disadvantages of one or the other choice? All the answers to the questions

When you decide to buy a house, in addition to the excitement of a new start, worries can arise. One of the most frequent and most legitimate doubts concerns the choice of payment method. Visit for more knowhow.

Buying your first home with a mortgage or cash?

Paying in cash avoids taking on a debt with a bank , but this choice can leave little liquidity available. Conversely, with the mortgage you pay little by little – so it is certainly a more sustainable solution for most Italian families. On the other hand, however , the commitment to the bank can take a very long time : the mortgages can last from 5 to 30 years during which you will also have to pay the interest expense.

Many today choose to buy part of the house in cash and part with a mortgage, so as to be able to maintain a liquid availability to face notary fees , taxes and furnishings, in addition to daily expenses and unexpected ones that can always happen.

According to the data published by the Observatory, in the first quarter of 2018 mortgage applications decreased, but those aimed at buying the first home are more than subrogations and occupy 48.1% of the entire sample surveyed.

According to the Observatory, then, the incidence of shorter (cheaper) durations is growing , and the volume of the average amount of the request is slightly decreasing, equal to € 126,377 compared to € 128,581 in the fourth quarter 2017.

Finally, the Observatory traces the profile of those who apply for a mortgage : they are mainly from northern parts(46.5% of cases), are between 36 and 45 years old (44.1%) and have permanent employment (82, 1%) with a salary between 1,500 and 2,000 euros (37.4% of the sample).

But in the end, what should we do? In the post we will see the advantages and disadvantages and related tax breaks for each solution , but first it is good to remember that for those who buy their first home there are some tax breaks – called first home bonuses – which allow you to save on taxes.