Should You Sell & Then Rent Back Your Home?

Many companies are offering the homeowners the 'Sell-and-rent-back' agreements where the homeowners sell their property to the company and then rent it back.

Although the companies offer the prices which is often below the current retail price of a house, this remains an attractive proposition for home owners, especially of they are in arrears and lenders are closing onthem to repossess their home. If companies are able to buy the house quicker than is possible via the open market then this is often considered a preferred option by many.

Many companies do not advertise he fact that the house has been bought. Many home owners prefer that because they do not want the extra stress having to explain their neighbours or relatives why they are having to sell the property.

Many home owners chosing to sell to these sell and rent back companies do not necessarily face financial hardship. Although a majority of people needing to sell wuickly are under strain to settle debts, others need to swiftly relocate, avoid a property chain breakdown, or face hardship selling their homes because they may be difficult to sell because of location of size of the property.

Indeed companies offering this service are in the business of making a profit thereby offering trade prices rather than what a retail customer will pay.

Clearly a majority of home owners do not need to sell in a rush and are able to wait till they get a price they are happy with. Therefore the sell-and-rent-back solution is not suitable for every one.

22 August 2008

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