Is a Sale Leaseback Right for You?
If you don’t understand the whole picture, it sounds pretty dumb. Renting your own home? It’s already yours, right? Why in the world would anyone want to do that? What could they possibly get out of it?
In fact, there are some totally tangible benefits that could come from renting your own home, commonly referred to as a sale leaseback.
Selling your home and then renting it back is a way to liquidate your home equity without affecting huge changes in your lifestyle. It puts cash from equity in your pocket without any of the drawbacks that normally come with selling your home.
If money is hard to come by due to job loss or other unforeseen circumstances, it can help you get back on your feet. The money you receive from the sale of your home can help you pay bills, pay off credit cards or student loans, or it can provide the capital you need to make the investment of a lifetime or start your own business.
Residential sale leaseback also has the potential to help bolster retirement funds. While reverse mortgages are pushed on retirees through TV advertisements, residential sale leaseback may be a more lucrative option for many retirees.
Whatever you decide to use the money for, it gives you access to all of the equity you worked so hard to build.
Offers Stepping Stone to New Home Purchase
Buying a new home can be daunting. Say you have the need to put your home on the market and it sells the next day. Where will you go? Are you looking forward to moving all your stuff a couple times as you transition to a new permanent place? Probably not so much.
With a residential sale leaseback, you can simply stay in your current home for the length of your lease and use that time to find your next home with cash in hand. No worry that you’ll have to settle for a house you don’t love to make sure you have a roof over your head!
You Don’t Have to Move
Moving is the worst. When people finally get all their junk moved into a new place, it’s almost a guarantee that the first thing out of their mouth is, “I’m NEVER moving again!” It’s a ton of work, it can cost a fortune, and where ever you plan to go next, the competition is likely steep. Finding a new place to live is hard these days.
If, for financial reasons, you have to sell your home, a residential sale leaseback agreement would mean that you didn’t have to move. There’s no need for your life to get shaken up, which is especially important if you have children.
These benefits are obviously dependent upon your situation. If you don’t have need of any of the benefits, they’re obviously not benefits.
Sell With the Market, Not Your Circumstances
The real estate market is booming! However, that won’t always be the case. A residential sale leaseback agreement will allow you to unload your home in peak market conditions, even if you’re not ready to move. Then you can turn around and buy at your leisure when prices are lower.
Renting Your Own Home: Is It Right for You?
With home ownership being something so many people strive for, a goal to be accomplished, it can be difficult to understand why anyone would want to rent the home they already own. There are plenty of instances where it’s not only a viable option, but preferable to continuing to pay a mortgage payment. Our Sell and Stay program is a great and flexible sale leaseback, that allows you to buy back or move at any time.
Tom BurchnellProduct Marketing Director
Tom Burchnell, Director of Digital Product Marketing for EasyKnock, holds an MBA & BBA in Marketing from University of Georgia and has 6 years of experience in real estate and finance. In his previous work, he spent time working with one of the largest direct lenders in the SouthEast.