Can You Safely Sell Your Home And Rent It Again?
Plans that allow homeowners to sell their property and then rent it out are often called sell-and-lease or buy-back schemes. Simply put, the property owner sells the home and then continues to rent it out to the new owner. This means that the house will no longer be theirs, but they will continue to live in the same house without being forced to move.
A major factor contributing to why people choose this type of scheme is financial pressures. Although we have become accustomed to many luxuries and a certain way of life, this has by no means relieved the pressure on our pockets! In fact, many homeowners are feeling more affected today than they were years ago. These economic difficulties affect a large majority of the population and can make it difficult or impossible to continue with monthly mortgage payments.
When a homeowner is unable to pay their mortgage, for whatever reason, there is an instant concern that the bank will “knock on the door.” Instead of being left homeless, these struggling homeowners choose to sell their property. By choosing to sell and rent the property, rather than simply selling, all the hassle of packing up and moving is eliminated. There’s no need to downsize, pay moving professionals to transport your precious belongings, or desperately search for a house that you can afford. Selling your home and trying to find a new place to live while handling your usual daily responsibilities is not only stressful and exhausting, but also unnecessary. Plus, when you sell your home, you’ll enjoy instant financial relief and can use the funds to pay off your other debts or finance another investment perhaps.
It is important to note that these schemes are managed by private individuals and companies. As with any financial decision, it’s best to take the time to consider all of your options and read all of the fine print in the agreement before signing. Try to consult with at least three different people or companies who are willing to offer this scheme, and don’t be afraid to get legal advice to make sure the terms are in fact legitimate. An independent financial advisor will be better equipped to discuss your various options after considering your financial situation. It is important to seek this type of advice and make sure that selling and renting your property is the best option.