Is Leaseback a Good Idea

Residential leaseback agreements can be a good option if you need to sell your house but want to stay in it. You also benefit from no longer being responsible for ownership costs, like taxes and maintenance expenses.

What is the purpose of a leaseback?

In real estate, a leaseback allows the owner-occupant of a property to sell it to an investor-landlord while continuing to occupy the property. The seller then becomes a lessee of the property while the purchaser becomes the lessor.

What is the advantage of sale and leaseback?

The main tax advantage of a valid sale-leaseback is that rental payments under the lease are fully deductible. With conventional mortgage financing, a borrower deducts interest and depreciation only.