Buying property in a better area by paying 50% of the property

Just out of curiosity, is there anything that stops someone who is able to get a lot of cash on hand with a low borrowing capacity from buying a better property by paying for the majority of it themselves?

e.g. Let's just say someone only had a borrowing capacity of 300-400k and 700k cash.
300-400k would probably get you something crappy but if they paid more than 50% of the property value by cash, they could get something so much better.

Is this how people born rich get nice houses at a young age?

 

You just add your cash to your borrowing capacity and that is what you can buy.

If your borrowing capacity is $100k you could still buy a $1mil property if you had $900k cash.

But the more expensive the property the more rent you are likely to receive so the borrowing capacity might increase as your go up on price.

 

...are you asking if there's anything stopping someone from buying property if they have lots of money?

Umm - what?

 

Apologies, definitely could have been clearer! I was just thinking how a young adult with a privileged background can own a property in a good area. Early in their career they wouldn't have a lot of borrowing capacity if judging purely by their income stream.
Normally people would only pay 5%-20% of the deposit. To take an extreme example, would there be someone who pays 80% as a deposit and only borrow 20%?

If I'm not making sense, happy to delete the thread to prevent confusing anyone further!

Terry_w did pretty much answer my question though

 

That's not really an extreme example. There's lots of young people with rich backgrounds that get a nice house paid for 100% from their parents or families. No banks required!

 

Some young people also have exceptionally high incomes and are able to save a big deposit quickly. And inheritances.

 

There is no one size rule on this one - some are fortunate enough to have sizeable funds gifted to them, some are fortunate enough to have very strong incomes at an early age to be able to borrow with aid of a parental guarantor to make up for the missing equity, some can find a way forward with parents as co-owners or (for one lender) as servicing guarantors.

 

Or even older people who pay cash for houses.

 

Provided that the "cash" is not sitting under the mattress rather tan in a bank/other financial institution or investment, there's no issues.

Cash on the other hand may be a reportable transaction.