Updated: July, 14th 2023
Where does the real estate market go from here? That's the question that everyone wants the answer to. Buying a new home is undoubtedly a cause for celebration, but it's certainly a challenge these days with high-interest rates and even scarier prices! Quite a few people have lived in the same home for decades, this seller's market is certainly tempting, but finding your next move can be super daunting! When confronted with unexpected life events or financial challenges, homeowners often have to decide whether to keep struggling or sell and uproot their lives in order to stay afloat.
Luckily, there are new options out there. I helped one of my coworkers with some extensive research on home sale-leaseback companies. She ended up working with a great company called Truehold. With Truehold, you can sell your home for its cash value and continue living in it as a renter for as long as you’d like. I know, I know – it sounds too good to be true. We had a lot of questions: how easy is it and how does it work? To get to the bottom of it, our finance editors did a deep dive so you don’t have to. Here’s everything you need to know:
1) Who is Truehold?
Truehold is the nation's leading provider of residential sale-leasebacks. Unlike other real estate companies out there, their mission is to help people access their home equity without having to actually sell and move. Yep, they provide options to those who want to stay in their homes with their financial and real estate solutions.
2) What is a sale-leaseback and what are the benefits?
A sale-leaseback is a combination of two common transactions; a home sale and a lease. Basically, Truehold buys your house and leases it right back to you. It's that simple!
A sale-leaseback can protect your wealth against volatile home values and can help you diversify your investments into income-generating assets like stocks. More importantly, you have easy access to cash to use in the times you need it most.
3) Do I pay taxes on the sale of my house?
If you’ve owned and lived in your home for at least two out of the past five years, you generally don’t have to pay federal income taxes on your home sale's first $250,000 profit. For married couples filing jointly, you usually don’t need to pay federal income taxes on the first $500,000 of profit. We recommend that you first consult with a tax advisor as everyone’s situation is different.
4) How is rent calculated after the sale? How long can I lease my home?
Truehold uses local comparable rentals to set a market rent for your house and clearly communicates them at the time of sale There are no limits to how long you can lease your house. As long as you continue to pay rent and comply with the lease you have the contractual right to stay in your home as long as you’d like.
5) What can I use the money for?
Whatever you want!
Most people use the cash proceeds from their sale-leaseback to:
- Invest or diversify investments
- Pay off debt
- Buy or renovate another home
- Cover unexpected financial or healthcare costs
- Build a financial legacy for their children
Just the concept of selling your home can be overwhelming, not to mention scary. But during our research we found Truehold was there to answer any and all questions every step of the way.
Truehold’s exceptional sale-leaseback service has already helped thousands of people unlock their home equity and live debt-free. So, why not reach out to them to see if Truehold is the right solution for you to live your best life?