Sell And Rent Back: Save Your Home

The housing market is a volatile entity with changes in outlook happening every day. When the housing market is getting better, you will be able to make decisions about your property more easily and with greater confidence. One method people have been discovering to access the equity in their homes is the sell and rent back technique.

The process where one sells their home to another, and then arranging to rent the same home back from that person is called sell and rent back. The primary reason sell and rent back is used is so that you can sell your home while freeing the equity in the home while you find another home to move to. Another reason this technique is used in real estate is so one can stay in their general area, or to keep your financial issues to yourself instead of telling friends or relatives what you are doing.

These parties buy houses throughout the country and rent them out. Another market in renting back the apartments has developed in recent years. In the late 1990s, thousands of people purchased apartments to gain equity and also reap the rewards of living in conveniently located apartments; now, to release the equity, people are selling these apartments and trying to buy back the same property.

Many people prefer apartment living due to smaller easier to clean rooms. Another reason is because any maintenance work is done by a management team instead of the tenant calling for work themselves. There is no outside work to perform and they are close enough to where people work in cities. In general, many people prefer to live in an apartment, but they still want to take advantage of freeing equity for other interests.

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 option to tap into your equity is to sell your home. However under conventional terms that means that you are now going to have to buy a new house and move. This is why the sell and rent back technique is so lucrative. You can continue to stay in your home while preventing your higher monthly payment and/or interest increase. And your neighbours and friends will be none the wiser that the property has been sold.

The housing market right now is extremely volatile, but the long-term outlook is improving. The sell and rent back technique has become more common among homeowners looking to make use of their home equity. This process is where people sell their homes for rent back purposes. The primary reason to do this is so that you can sell your home while freeing the equity in the home while you find another home to move to. Another popular item is the rent back apartment. Many people would like to continue to live in their apartments while freeing up the equity that they have built up for other investments or consumption.

- Peter Shukla

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