One of the most difficult things about retirement is being cash-poor but rich in terms of net worth. To anyone who has been paying down a mortgage for years, this is often the result. As your primary source of income dries up, it becomes necessary to look for another way to sustain your lifestyle.
One such method is performing a sale and leaseback on your home. This arrangement is already quite popular in commercial real estate as a form of financing. It allows companies to pull their money out of the real estate they invested in while still continuing operations in the same spot.
There are several benefits to a sale and leaseback. One positive aspect of a sale and leaseback is that you can negotiate to have the landlord take care of some of the home maintenance expenses. As some residents get older, it becomes very difficult for them to perform some of the more demanding tasks in the home, which makes this a great solution. Wouldn’t it be great to organize a gardening and snow removal service as part of your lease?
Renter protection laws will ensure that you are able to stay in your home as long as you would like as part of your initial lease. Usually you would sign a longer lease in the beginning and then renew it close to the end of the term. There are many investors who are looking for opportunities such as this.
Most of all, the prospect of being able to take some money out of the market to sustain a normal lifestyle is very appealing to those in later years, especially since you get to continue living in your home. This arrangement has not yet reached the mainstream in Toronto, but we are wise to the benefits and can help you find an investor.
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