Pay outright or get a mortgage?

Hi guys,

first post so hopefully it's in the right forum!

recently came into some cash and so can now afford to buy my own home - something i've wanted for a while now, and the thought of being able to live mortgage free sounds great! however, somebody advised me that i might be better taking out a mortgage, to avail of tax relief etc. in interest repayments rather that actually paying for the house with my own money. and obviously then, investing the cash... i hadn't even considered this possibility tbh and was wondering is it slightly outlandish or is it sth that should be considered/looked into at the very least?

thanks a lot

What is your attitude to risk? What is your overall fiancial situation like (savings, investments, pensions)?

Do you think you can earn more on an investment than it will cost in interest on the mortgage? If so, then invest the money.

What about a split? Use some of the money to buy the property, invest the rest?

Or buy the house outright and invest the money that would have otherwise gone on future repayments.

It's a good problem to have-best of luck no matter what you decide.

ccovich has put it well.

Mortgage finance is cheapest loan available to you.

If you have other 'asset' opportunities (and property is merely one form of asset) then the return available might be worth taking out a mortgage.

Tax relief is now fairly minimal, though better in yout pocket than that of Revenue, though you have to pay the interest.

thanks for the advice guys... as im *very* risk averse i think i'll go with using the cash for the house, and then feeding my savings (from not having a mortgage) into other investments
cheers

Sounds like the best option. All the best.