Equity Sharing Agreement vs. Refinancing vs. Selling Property Outright
When it comes to deciding what to do with your property, there are a few different options to consider – equity sharing agreement, refinancing, or selling outright. Each option has its own set of pros and cons, so it’s important to weigh all your options before making a decision. Here are a few things to keep in mind as you decide which route is best for you.
Equity Sharing Agreement
An equity sharing agreement is when you sell a portion of your ownership stake in the property to another party in exchange for cash. This option can be beneficial if you need money quickly and don’t want to go through the hassle of refinancing or selling the property outright. However, it’s important to note that you will no longer have full ownership of the property and will have to split any future profits with the other party.
Refinancing involves taking out a new loan to pay off your existing mortgage. This can be a good option if you have built up equity in your home and want to lower your monthly payments. However, it’s important to keep in mind that you will have to pay closing costs on the new loan, and it could take longer to pay off your mortgage if you extend the loan term.
Selling Property Outright
Selling your property outright is another option to consider if you need cash quickly. This option can be beneficial if you don’t want to deal with the hassle of an equity sharing agreement or refinancing. However, it’s important to keep in mind that you will likely have to sell at a discount if you want to sell quickly.