One question troubles many people who choose to sell to rent: what will we do with the cash?
It's a nice problem to have – but one question is troubling many people who choose to sell their home and rent it back (called "sell-to-rent"). What, they wonder, will we do with the money we get?
Sell to rent schemes are increasingly popular – especially as property prices are widely forecast to fall in 2008 (and 2009 and 2010, according to some experts). People with equity built up in their homes are deciding that now is the time to cash in on the rising prices of the last few years.
People cash in with sell-to-rent
And they literally are cashing in. A decade of rising prices means that many Britons are sitting on hundreds of thousands of pounds in bricks and mortar – and, once the mortgage is paid off by the sell-to-rent deal, even those who bought only a couple of years ago can be left with a cheque for a five-figure sum.
The problem can be added to by the fact that people who sell-to-rent hand the maintenance and repair costs for their home over to their landlord – freeing up more disposable income and adding to their cash sum.
Sell to rent and pay off debts
For those who have other debts that need paying off, the choice is simple – use the sell to rent proceeds to clear the debts and save a fortune in potential interest payments and other charges.
It's also worth considering that the rent still needs paying. Some people choose to fund so many months – or even years – of rental payments with the profits from the sell-to-rent sale. Again, this can mean more disposable income or lead to further savings in other areas in future.
Sell to rent and save for the future
People planning to return to the property market at some point – perhaps when house prices return to more realistic levels – often take advantage of current high interest rates. They're bad news for mortgage holders, but mean any cash put away in a high-interest bank or building society account can generate decent amounts of interest, which can help fund a decent deposit on a future house price purchase.
Many people wanting to invest money over the longer term choose an investment in the stock market, and there are many ways they do this. It can be a risky investment – one that can go down as well as up – but with added risk often comes better returns, and over the decades the stock market's performance has outperformed even that of the housing market.
Spend, spend, spend with sell-to-rent
For others, the sell to rent bonanza is there to be spent – and if you're going to buy a new car, a dream holiday, or other big-ticket item, it's certainly better to do it with savings than to run up a debt while juggling mortgage payments and other maintenance costs.
Of course, "money can't buy everything", as they say. But, as many people who sell to rent are finding out, it can buy an awful lot of things.
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: 0800 1313 999.