Real Estate - Real Estate Investment

One
of the major issues currently being discussed at the moment is the
sudden rise of sell home and rent back companies in the sector. As a
relatively new concept, it is open to much suspicion, especially as
it tends to blur the lines of the different market areas.

The
basic idea is that a person sells their house to a specialist cash
buying company and then rent the property back at local market rent.
Although debt management is the most talked about motivations for
this, there are a number of different reasons that people decide upon
this course of action, including divorce or separation, equity
release, expedient sales or emigration.

There
are advantages to sell
home and rent back for all of these motivations. Concerning debt
management, the ability for a sale to be completed within 48 hours is
advantageous when trying to stop house repossession. The rent back
company is also able to eliminate up to 80 percent of all unsecured
debt without using any proceed from the sale, due to a dedicated Debt
Management Department, a service offered as a part of the package.
With regards to equity release, the major benefit over traditional
equity release schemes is the ability to unlock 100 percent of the
property’s equity.