Sell And Rent Back - Easy Way To Tap Equity
- Date: 2007-10-07 - Word Count: 428
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The housing market is changing every day. With the outlook of the housing market only getting better it is easier to make long term decisions with your property. One newer technique people are using to free up the equity in their homes is the sell and rent back technique.
Sell and rent back is a term used for the process of selling your home to another party and then arranging an agreement to rent the same property back from that person. This means that you are able to sell your home and free up the equity in the home without having to find a new home to move to. This is the primary reason that people utilize the sell and rent back technique. Another reason is to stay in the same area, or keeping their financial affairs to themselves rather than having to tell friends or relatives that they are having to sell the property for whatever reason.
All over the country, people are buying residential property for the purpose of becoming a landlord by renting it back to other people. During the housing boom, many renters purchased their apartment as condominiums in order to gain equity, and the benefits of home ownership, while still enjoying the many benefits of apartment living. Now, with the recent market downturn, many of these people can't keep up on their monthly mortgage payments, and are opting to sell back the same property while staying in their homes by renting the property back from the buyer.
Living in a small apartment is an ideal option for many people. Maintenance is done in your home for free by the landlord or management staff, who retains a key so they can come inside and fix things as necessary -- very convenient. Rooms are usually smaller and easier to clean too. The apartment dweller is not responsible for outdoor maintenance either. Also apartments are often situated nearby cities and employment opportunities.
Many people are finding that in their attempts to get equity from their homes by refinancing, they are subjecting themselves to substantially higher monthly payments and possibly even a higher interest rate. They would love to find alternative ways to get at their equity without having to experience these financially-unfavorable side effects.
The only other way you can access your home's equity is by selling it. Usually this would involve having to move and buy a new home, eating up your equity. However, the sell and rent back technique has changed this, by allowing you to continue to live in your home without paying higher interest rates or monthly payments.
Sell and rent back is a term used for the process of selling your home to another party and then arranging an agreement to rent the same property back from that person. This means that you are able to sell your home and free up the equity in the home without having to find a new home to move to. This is the primary reason that people utilize the sell and rent back technique. Another reason is to stay in the same area, or keeping their financial affairs to themselves rather than having to tell friends or relatives that they are having to sell the property for whatever reason.
All over the country, people are buying residential property for the purpose of becoming a landlord by renting it back to other people. During the housing boom, many renters purchased their apartment as condominiums in order to gain equity, and the benefits of home ownership, while still enjoying the many benefits of apartment living. Now, with the recent market downturn, many of these people can't keep up on their monthly mortgage payments, and are opting to sell back the same property while staying in their homes by renting the property back from the buyer.
Living in a small apartment is an ideal option for many people. Maintenance is done in your home for free by the landlord or management staff, who retains a key so they can come inside and fix things as necessary -- very convenient. Rooms are usually smaller and easier to clean too. The apartment dweller is not responsible for outdoor maintenance either. Also apartments are often situated nearby cities and employment opportunities.
Many people are finding that in their attempts to get equity from their homes by refinancing, they are subjecting themselves to substantially higher monthly payments and possibly even a higher interest rate. They would love to find alternative ways to get at their equity without having to experience these financially-unfavorable side effects.
The only other way you can access your home's equity is by selling it. Usually this would involve having to move and buy a new home, eating up your equity. However, the sell and rent back technique has changed this, by allowing you to continue to live in your home without paying higher interest rates or monthly payments.
Related Tags: sell and rent back, homes for rent back, rent back apartment
Recently, the sell and rent back technique has become more commonly used by homeowners looking to make use of some of their home equity. This is a process whereby one sells their home to another, and then arranges to rent the same home back from the buyer. If living in a condominium, rent back apartment is also possible. Your Article Search Directory : Find in Articles
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