Your Second Home Investment: Leasing Your Old House
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Posted On :
Mar-16-2009
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Article Word Count :
516
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If you currently own a house and would love to buy a new one, you would probably consider selling the old house and use half of the money to deposit down payment for the new home, while some of it, to buy new furniture, and the rest, to pay for bills and other expenses.
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If you currently own a house and would love to buy a new one, you would probably consider selling the old house and use half of the money to deposit down payment for the new home, while some of it, to buy new furniture, and the rest, to pay for bills and other expenses. But do you know that selling the old house is not always the wisest choice to make when you're considering changing your old, smaller, home to a new and bigger one? There's a way to have a second home without giving up the old one. As a matter of fact, your second home can work as your investment.
How can this be done?
Second home investment can be done by leasing your old house. Yes, you don't have to sell your old house for a lump sum and say goodbye to it forever. By finding someone to lease it for a certain number of years, the money you receive from the monthly 'rent' will serve as payment for your new home's monthly amortizations.
Why lease instead of sell
Selling a house is not always easy, especially if you will do it yourself. It will take time before you can find an interested buyer, what with your limited advertising resources and know-how in the field of real estate selling. Doing all the hard work that a team of learned and skilled agents and brokers have been doing for ages is a difficult feat and might lead to you shelling out more money than you have expected or worse, doing all these things and not be able to sell the house even after a year of being in the for sale market.
The easiest route to get the money you need is by leasing your old house. The reason, as many real estate agents would attest, it's easier to find lessees than home buyers.
Another advantage of leasing over selling is that with the former, you retain ownership of the old house while you are receiving money from the new residents on a monthly basis. So, as you pay with your new home's monthly amortization, you still enjoy the privileges of being the owner of the old house. This means, if you'd have an immediate need for cash, you could anytime mortgage the property for a short term or sell it after the contract of lease expired.
Find help
While it's true that it is much quicker to find a lessee than a home buyer, it doesn't mean that leasing your old house is as easy as finding someone to use your home and pay you for its use. The process involves a lot of legal documentations that you wouldn't want to risk writing yourself or signing without the counsel of an attorney. It would be best to find help, a professional one at that. Getting an agent to work with you will lighten your load. In fact, they can even do the lessee hunting, negotiations and closing, contract signing and all the works.
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Article Source :
http://www.articleseen.com/Article_Your Second Home Investment: Leasing Your Old House_164.aspx
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Author Resource :
About the Author:
Joe Cline writes articles for Austin real estate. Other articles written by the author related to round rock real estate and Austin Remax can be found on the net.
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Keywords :
Austin real estate, Austin Remax, round rock real estate,
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