Equity sharing agreement vs. getting a reverse mortgage vs. selling property outright: what to consider
When it comes to deciding what to do with your property, there are a few different options to consider – equity sharing agreement, reverse mortgage, or selling property outright. Each option has its own set of pros and cons, so it's important to weigh all the factors before making a decision. Here are a few things to keep in mind when considering your options.
Equity sharing agreement:
With an equity sharing agreement, you can keep ownership of your property while still receiving some financial assistance. This option is ideal if you need help paying off debts or making home improvements, but don't want to give up complete control of your property. However, it's important to be aware that you will be giving up a portion of the equity in your home, so you'll need to make sure that you're comfortable with that before entering into an agreement.
A reverse mortgage can be a good option if you're looking for a way to stay in your home and supplement your income. With this type of mortgage, you'll receive payments from the lender based on the equity in your home. The downside is that you'll be accruing debt against your home, which could put it at risk if you're unable to make the payments.
Selling property outright:
Selling your property outright can give you a lump sum of cash that you can use for any purpose. This option is often best if you're looking to downsize or move to a different location. However, it's important to keep in mind that you won't have any equity in the property after it's sold, so this may not be the best option if you plan on staying in your home for the long term.