What is a House Sale And Lease Back Deal?
A deal known as a house sale and lease back is very popular in Australia these days. It is a great option and a terrific chance for everyone that needs a lot of money at once but for some reason does not like to take a classic loan from the banks.
What exactly is meant by saying house sale and lease back? It means that this is not a standard sell and buy deal you make with a company or a person. Instead, it is a deal in which you make a deal with a company or a person for selling your house that you own and live in, but under special terms.
So why would you do this? Of course, the main reason is that you need money. But why wouldn't you do a standard deal, the one almost everyone does - get a loan from a bank. Well, some people simply don't like banks and their enormous interests that will make you pay almost twice the value of your house when you fully return the loan. Some prefer the sell and leaseback option more because of the comfort it offers.
What is meant by this "comfort"? When you sell your house, typically you need to move out. Making a sell and lease back contract means you're staying in your own home even though it's not yours anymore. The key term for your selling deal to be a part of this is to agree with the buyer that they'll let you stay in the house for a fixed period of time. After this, you'll be able to renegotiate your future and the future of the property. A standard part of the deal is that the new owner is obligated to let you choose if you want to buy your house again.
Of course, after you officially sell, you'll have to pay rent to the new owner - amount that you should agree on before you make the deal. The best part of the deal, aside from the lump sum you have in your pocket, is that you no longer have to care about the legal matter, paying taxes and other bureaucracy. This is now something about what the new owner will have to think about.
Another great part in making a house sale and lease back deal is that you save a ton of time and money on looking for a new place to live and moving from your house to the new place. You practically end up with a bunch of money and you still get to live in your own home. Have the same lifestyle, keep your own habits and you don't even tell your friends you sold your house if you don't want to.
There are many other options for Australian citizens to get a large amount of money fast, but it seems like this is the best option by far because you don't need to get involved in deals with banks, there are no interests that you need to pay each month, and no additional problems.