Is Sell and rent back good enough for post retirement?
If you dream of a peaceful and secure life after retirement, you have to look out for every possible option to realize your dreams. Having enough cash in hand is always essential for leading a secure life in terms of health, children’s education etc. But sell rent back is one of the options you must look out for only if you are left with no other option but to go for it. There are quite a few reasons for which you should not go with this plan as you may not always buy back your house at a pre-determined rate and at times you may not be entertained as tenants by the firm.
The major drawbacks of this policy are as follows:
• There is every chance that you might get a lesser value for your property than the existing market value. The decision of the firm is final
• The investors usually offer 80% of the value of property as a pay back on account of the downward trends in the prices of the property
• In a few cases sell rent back schemes do not guarantee your tenancy, this might be a major disadvantage.
So, sell rent back policy should be the worst case criterion as it should not hamper your peaceful retired life.