LANDLORDS BECOMING TENANTS

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R
ROE
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TWO scenarios-

I have come across a few cases where people decide to sell, then rent other properties till they buy another one. Is that not pouring money down the drain instead of waiting to buy another one then move on? I often wonder about the wisdom of such arrangements.

My nephew wants to rent out his property and in turn rent from another landlord.

In his case, he is moving to a bigger property and paying 100 more to his landlord than he is getting for his own property. I am no mathematician so I find it hard to see if there is any benefit with such arrangements especially in the first scenario above.

Your comments are welcome.




07/11/2013 09:22

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