Photos: Burt Reynolds’ Home of 35 Years
From Yahoo News, September 11, 2015
This article recently ran in the homes section of Yahoo:
“Hollywood legend Burt Reynolds has finally sold the Florida mansion he’d owned since 1980. The buyer, who paid $3.3 million, reportedly says Reynolds will remain there and pay rent.”
Christian de Guigne IV, heir to a fortune made in chemicals who owns a Northern California property that has been in his family for 150 years — and in 2013, he sought to sell it for $100 million.
He had just one little contingency, not counting the stratospheric price tag:
He would live there until he died, whereupon the buyer could move in.
These are just two examples of the rich and famous needing to convert their homes equity into cash in order to maintain a lifestyle they have become accustom to.
Sometimes it just makes sense to rent rather than continue to own.
Even if you have no mortgage payment the cost of owning a home can be overwhelming.
- Property Taxes
- Maintaining basic homeowner’s insurance
- Property Maintenance
- Homeowners Association Dues
Not having to worry about these things can make the prosper of paying rent pretty attractive, right?
For example, consider my own home.
Where I live in Florida, there is no cap on property assessment.
Basic costs are:
- Florida property tax rates run about 2.5% of assessed property value.
- There is no cap on property assessment.
- Homeowners insurance is the highest in the country, meaning a rate of about $1.70 per month per $1,000 in value (what with the hurricanes and all…..)
- I can be assured that at least once per year, something will break or need to be replaced.
So, what does that all mean when you break it all down into dollars and sense?
Here’s an example of a simple two bedroom condo ($250,000) in North Palm Beach:
Now lets’ assume that there is also a $100,000 mortgage on the property which requires a monthly payment of $600.
The total monthly expense to live in the unit is now $1,735.
Also, there is $150,000 of equity tied up, illiquid and not doing you any good.
What if you could sell the unit, rent it back for $1,875 per month (so you remain in your home), never worry about mortgage payments, taxes or maintenance again and have all that equity in your pocket where you can use it for whatever you like?
Would liberating all of your equity while remaining in your home make living your life a little easier?
Sale and Lease back was the right solution for Burt…. How about you?