Sale and Leaseback

[buildup]

For a high-end residential condo, has anyone heard of sale and leaseback arrangements where the seller secures the right to stay indefinitely?

 

[AndreaPalladio]

Well, Lord Black just did that with his pile up in the Bridle Path.

 

[buildup]

It's what got me thinking - on a vastly smaller scale.
I'd consider selling my condo, providing I could lease it back indefinately.
Is this common?

 

[AndreaPalladio]

Until His Criminalness did it, I had only ever heard of it with respect to commercial properties, where it is a pretty common financial strategy.

 

[TOphotog]

I can't see any landlord locking themselves to a tenant long-term. Circumstances change where they may need to sell, and having a long term sitting tenant is not in their best interests as it will affect the sale price. In Toronto's rental climate, changing tenants can mean a substantial increase in the allowable rental rate whereas a sitting tenant will limit the landlord for rental increases.

 

[rbt]

For a high-end residential condo, has anyone heard of sale and leaseback arrangements where the seller secures the right to stay indefinitely?

I've seen this with inherited properties on a number of occasions. Father remarried, passes condo to kids but with a life-lease to his new wife.

I've never heard of a long-term leaseback like this for non-commercial properties, but that's probably because the present-value for this type of arrangement is going to be much lower than simply selling the property through normal channels. None of this negative profit with speculation about future pricing stuff that many small residential landlords are willing to accept.

HomEquity Bank does reverse mortgages which gets you partway to where you were thinking.

 

[buildup]

Thanks TOPhotog and rbt, that was helpful and informative.

 

[Saskia Wijngaard]

Hi My name is Saskia Wijngaard, I created a Sale and Leaseback Program call Sell ' n STAY. Over the past 3 years we have perfected the process and now teach it to a select group of Realtors. It has been designed to be a win win win for all parties. We have a database of investors, and homes and we match the investors to the homeowner. If you have any questions I would be happy to answer them.

 

[TOphotog]

Saskia, as a very inquisitive realtor, I'll give you a call this week to discuss what you do. It doesn't suit my clients (generally a younger set) but I'm anxious to learn more about it. It makes better financial sense than those 'reverse mortgages' which have scam interest rates which eat up all equity over time.

 

[Saskia Wijngaard]

Actually my last client on this program is 40 year old stock broker, his wife a doctor. They want to exit the market, without moving as her professional office is attached to her home. So this gentlemen, has no mortgage, and enough to retire on. He wants to do it to get the funds out. The rent is a wash because he will be able to make up the amount when he invests the entire sale into his chosen investment. I also train and license this program.

 

[ali90]

I dont want to hijack this thread but since the only option I guess for a new member is to post on existing thread this is the only option.

I am new to toronto and I am looking for an apartment for rent, I am a south asian and I am looking for areas where there are more of people from this region. I have seen that scarbrough and thorncliff has a good percentage,. Mississauga is also one of these but its expensive I guess, is there any other area apart from these 3?

 

[Saskia Wijngaard]

11% of South Asians live in Toronto so Toronto is convenient. Plus you are close to everything. There are many places that have very strong South Asian communities. Brampton is a choice that is cheap but then there is a commute. Here is an idea go on Meetup and check out south asian groups and see where they meet. Then go to a meeting ... you might make a friend or meet a landlord.