Selling And Renting Back Your Property
Posted on 11. Nov, 2008 by admin in Property
In you’ve never heard about selling your property and renting it back. I admit, it might sound a little odd. But in fact, it is extremely common. Many people are opting to sell their homes to cash buyers, especially in the current financial climate and then renting the property back from the buyer. I guess you need to think of it as selling your property to a company as opposed to an individual buyer, a buyer who wants to move in and live in the property. Such companies first and foremost buy your property to turn a profit. Whether they’re buying your property to flip it at a later date for a large lump some profit or they’re looking to find tenants for the property to live month to month, the rational is the same. This is where the option of selling your property to a cash buyer and then renting back the property from them comes in. You get a quick, no chain, lump sum cash payment for your property and you don’t even need to leave. The property buyer also gets a property investment and doesn’t need to bother locating their own tenants for their property. It’s a win / win situation which is the main reason for its popularity.
Like most deals of this nature, there are advantages and disadvantages. The biggest disadvantage is that you simply won’t get as much for your property when compared with selling on the open market. Cash buyers usually offer around 15 - 20% less than the market value for your property. But, when considering how long houses take to sell on the open market, particularly these days, that doesn’t seem so bad. The biggest advantage in such a deal is the speed at which they can be wrapped up. Most transactions in the sell and rent back market are wrapped up within a matter of days.