How Do I Rent Back House That I'm About To Sell
If you're about to sell your house but would like to continue living in it, you need to sell it and rent it back at the same time. Some people ask themselves if this is even possible, and some simply don't think of this option, but the reality is that this is possible and many folks are doing it. You can rent back house that you just sold.
The deal is called Sell and rent back and is done pretty often in Australia. People are selling their homes to get a large sum of money and they rent it back. The deal gives the seller of the house lots of advantages and only one negative thing - being left without property that you can sell later in life for the same reason as you would do now.
The main positive thing, of course, is that you get a lot of money on your account that you can use the way you need them. The value of your house is one thing, but the price that you're willing to sell it for is yours to decide. You can sell your house for $200.000 and use the money to cover some debts. The rest can be used for the monthly rent that you'll have to pay after the house is sold.
Another great thing is that after you sell the house, with the rent back house deal, you don't need to look for another place to stay. Moving out and moving in a different house takes a lot of time, energy and of course, money. If you simply rent the same place that you just sold back, you don't have to do any of this. You also get to keep the same way and style of living that you had before. Actually, no one even needs to know you're selling the house.
When you sell your house, you don't have to worry about taxes anymore. You have no other expenses too. The only thing you need to worry about when money is concerned is the monthly rent that you and the new owner will agree on before you make the deal. Typically, the new and the old owner agree to the terms before signing the final deal. There's no rule on how the agreement should look like, but it's an unwritten rule that the new owner must agree on at least 6 months. That means you are guaranteed to stay as a tenant in your own home for at least half a year and after that, you can talk about the future again.
If the person that bought and rent back house to you ever decides to sell it again, they're obligated to ask you first if you're about to buy it back. Who knows where you'll be later in life. Maybe you'll be able to buy the place back the same you once sold it so this is definitely a good thing to have in mind while signing the deal.