That depends on the individual case. Certain properties (e.g. vacation homes) are in higher demand at certain times and are therefore easier to sell.
Is selling your property the right—and only—option?
Owning a home is a lifelong dream for many people. However, this dream also comes with costs: the mortgage must be paid off and renovations and repairs are regularly required. Many owners no longer want to bear this responsibility in their old age. Other life events, such as divorce, also present owners with challenges regarding what to do with a property that can no longer be maintained for financial reasons. But is selling the property the only option in such a situation?
Anyone who buys a property is entering into a long-term financial commitment. Not only does the mortgage have to be paid off, but experts also recommend setting aside a reserve for maintenance. However, certain circumstances can make it impossible to keep up with loan payments, savings, and ongoing costs: divorce, career changes, or unemployment—people in these situations often need to sell their property quickly. This often costs the owner a lot of money because the property is sold below its value, not to mention the fact that they would prefer to stay in their beloved home. Older property owners also face the question of whether their house or apartment is suitable for their old age and what should happen to it. Here we show you what options you have.
What should I do if I can no longer afford or no longer wish to continue financing?
Unpredictable changes in life can lead to financial hardship. Especially after a divorce or job loss, it is often the case that property owners can no longer afford to pay off their current loans. This does not necessarily mean that the dream of home ownership is over. Some real estate agents offer the option of a property swap. In this case, two property owners are brought together. So if you are having problems financing your large house, you can swap it for a smaller property that is cheaper to finance. This is also a good solution for older property owners who want to sell their property first and then take their time to find a new home.
For older property owners, property retirement is also an interesting alternative that allows them to continue living in their property while supplementing their pension. This is because you sell your home but retain the right to live there.
Real estate retirement: Rent-free living
If you want to increase your liquidity in the short term by selling real estate but still want to keep a roof over your head, a reverse mortgage offers the solution. With a reverse mortgage, owners can sell their property and still continue to live in it. To do this, they have a right of residence entered in the land register. There are two models for this: The right of residence can be valid for life, as in the case of a life annuity. Or it can be limited in time, as in the case of a temporary annuity. This is also an interesting model for capital investors.
The purchase price for the property can be agreed relatively freely. It can be paid as a monthly "annuity," as a one-time payment, or as a combination of both. Those who have to sell in an emergency situation may prefer a larger one-time payment. Calculating the monthly annuity is very complex, as it depends on various factors. The basis is, of course, the value of the property. This is best determined by a local quality real estate agent. If the seller opts for a temporary annuity, i.e., a right of residence for a limited period of time, the annuity is based on this period. In the case of a life annuity, the estimated life expectancy of the property seller is decisive.
Sell and continue living in your home
In most cases, you can of course simply sell the property to an investor and stipulate that you can continue to live there as a tenant. The investor then assumes responsibility for the maintenance and repair costs of the property, and you are only responsible for the agreed rent and the usual ancillary costs. To protect yourself against early termination, it is advisable to draw up a long-term rental agreement with the future owner. This allows you to continue living in your beloved home while still reducing your financial burden. For married couples going through a divorce, this can be a very good solution so that one of the parties can continue to live in the home—especially if there are children involved, who will not have to be taken out of their familiar environment.
To be on the safe side, get enough for the property, and retain the right to live there, it is advisable to seek professional help. As a real estate specialist, a real estate agent has contacts with investors who buy properties but never want to move in themselves and can support you with their network of lawyers and financial advisors in drawing up a legally binding rental agreement.
Are you experiencing financial difficulties and considering selling your property?
With over 20 years of experience as real estate agents, we have seen many cases where property owners in financial or personal distress or seeking a new direction at a certain age have been able to find a new property or opportunities have been created to enable them to remain in their homes. With a comprehensive database of interested parties consisting of capital investors and contacts to financial and banking specialists, we can find an individual solution and accompany you every step of the way. Feel free to contact us for a no-obligation consultation to find out which model best suits your situation. We look forward to getting to know you.