I want to buy a property back in my hometown. The cost will be between $35,000-$45,000. Should I get a loan, or should I pay for the property out of pocket?
If I use all of my liquid money (savings/checking accounts) I could come up with the total. However, is that a smart decision? If I do that, I will only have about $5,000 left for emergencies.
If I get a loan, I would still have access to all of my "immediate" money. I could have flexibility if something catastrophic/unplanned were to happen. I hate the thought of having debt, and I have always avoided loans/borrowing. But a big part of avoiding debt has been making sure that I have plenty of "emergency money" on hand. Also, I have never gotten a loan before, and I've heard that could help improve my credit score (current: 782).
This property is just something that I want. The buildings are ancient and would require tons of work before they would be safe to do anything with. I want to buy it and begin fixing it up. Eventually when I retire, I would like to go back home and have everything set.
I am an extremely financially responsible person. I have a career earning $60k + annually. No debt. I have a Roth IRA and an investment account. (neither will be touched for this purchase) I have a retirement plan through work as well. No kids.
What would be the most responsible way to move forward? Thank you in advance for your advice.
