Taking advantage of a sell-to-rent offer combines the flexibility of renting with as much stability as home ownership.
Renting a home is generally agreed to provide more flexibility than home ownership – and those who choose to sell to rent can benefit from that. Many people don't realise that it also offers as much stability as owning the property you live in.
Around 70 per cent of households in Britain are owner-occupied, and a house-ownership culture has grown up which equates home ownership with wealth and stability. This is an unusually high proportion compared to other developed nations; the USA has only 59 per cent home ownership (and property values are falling as its residents are choosing sell-to-rent over unfeasible mortgage payments).
Less than half the houses in Germany – 40 per cent – are owner-occupied, and only 29 per cent of houses in Switzerland – arguably the richest country in the world – are owned by their occupier.
Many reasons for sell-to-rent
There are many reasons why people in other nations choose to rent (and why many British homeowners are choosing to sell to rent).
The flexibility of renting can be enjoyed by anyone who chooses to sell to rent. It is far easier to move from one rented home to another than it is to sell a property and buy. This means renters are able to easily move up and down the housing scale, in accordance with the needs of their family, or relocate to higher-paid jobs.
It is the last fact in particular that encourages many Americans to rent through their working careers and buy a house with their savings on retirement (thus avoiding hundreds of thousands of dollars in wasted mortgage interest).
Sell to rent and get rid of the repair bills
Many homeowners find their mortgage takes up a huge proportion of their income – meaning there is little left over to fund improvements or even basic maintenance and repair. People who are deciding to sell to rent are tempted in part by the fact that renters enjoy the fact that a landlord is legally responsible for maintaining the property to a required standard.
A common argument against renting is that ownership is more secure – but this is widely considered to be a myth in other countries. Provided a tenant behaves responsibly and keeps paying the rent, they are unlikely to be evicted – it doesn't make business sense for the landlord to get rid of a good paying tenant.
Sell to rent and housing benefit
A mortgage payer is as likely to find themselves in trouble if they don't keep up the mortgage payments – and, if faced with unemployment, will not be able to claim housing benefit. In fact, mortgage problems in both Britain and the US fuel much of the popularity of sell-to-rent schemes.
The housing price boom of recent years has encouraged many people to buy as an investment, and property has a good history of delivering good investment returns over the longer term. But mortgage interest, the cost of maintenance and repair, and legal and administrative fees – not to mention the vagaries of the property market – can eat into the potential returns.
Investors choose sell-to-rent
Property is not a very liquid investment, either – you can get your money out of a savings account, or even a share portfolio, much more easily than you can your house. Many investors are choosing to sell to rent, investing their money somewhere that delivers equal or better returns without as much risk and where it is much more accessible instead.
Many financial experts – in wealthier countries than the UK – believe renting is, overall, preferable to property ownership – and a lot of people are considering the sell-to-rent option as a result.
Sell to Rent with selltorentltd.co.uk
If you're caught in a financial house-trap, selltorentltd.co.uk can throw you a life-line. Selltorentltd.co.uk offers a sell to rent back scheme for those who like living where they are and want to maintain stability but are facing mortgage arrears, repossession, bankruptcy and debt or concerned financial meltdown is looming. The sell to rent scheme is an alternative to selling up and moving, allowing you to stay put and find financial solutions. Selltorentltd.co.uk will buy your home and allow you to continue living in it as a tenant. Find out more, call Sell to Rent Ltd. today on: 08000 255 868