Sometimes, if not too often we encounter difficult times in our lives and need a large sum of money. Sometimes it's about debts, sometimes we are keen on making investments that will make our life better in the long run. In these moments, the struggle is about providing a big amount of cash. In times like these, we turn to the banks. The banks are always open to give us a loan, but the terms are not always great for us.
If you're thinking about the problem in the same way, then you probably thought, how to make this thing happen without going to the bank and place a mortgage on the property in order to get the loan. There's a great solution for people that don't like standard bank loans and it's called sell and stay Australia.
So what this means really? When we say sell and stay Australia we're referring to people that already made a deal in which received a large amount of money and still didn't have to live their house or the property they chose. Sell and stay option is a great choice for both companies and regular people. The idea is to sell their property but still keep on living or working on the same property even though they don't own it anymore.
Let's say you have a house and you need money. You place the house for sale, a buyer comes and you make an agreement in which you sign a contract that you sell the house, but the new owner lets you stay in your house. So where's the catch? The new owner will be your tenant now, and you'll pay a monthly fee. The good part is, that you don't have to move, change locations, look for a place to live, hire professionals and pay them money to move your furniture and on top of everything, you get a large amount of money for this.
Another good part of the deal is that you don't need to care about the legal matter anymore. After you sell your house or other property you have, you no longer have the obligation to pay taxes. This might seem like nothing special to some people, but some really hate doing the bureaucracy.
In order to make a true sell and stay Australia agreement, you'll have to negotiate with the buyer of the property about the terms. Always ask for what's best for you at the moment. The buyer is obligated to let you stay and pay rent for the property in a classic sell and stay deal. However, it is up to you and the buyer how much time they'll be obligated and on which terms. The most important part of it is the amount of the monthly rent for the place.
Another thing you can add to the agreement is that if you are able to buy back your property later in life, the new owner will have to sell it back to you. This is something that's a standard part of the deal, so don't forget about it.