The housing market is a volatile entity with changes in outlook happening every day. When the housing market is getting better, you will be able to make decisions about your property more easily and with greater confidence. One method people have been discovering to access the equity in their homes is the sell and rent back technique.

The sell and rent back technique is easily explained. You sell your home to someone else and then immediately draw up an agreement to rent the property back from the buyer. This will allow you to free up the equity in your home without having to move and thus sink the equity into another house. Also, many people don't want to leave the area where they are now living. Many people also don't want to tell friends, relatives, and others that they have to sell their homes; this way, only you and the buyer have to know that your house has been sold.

These parties buy houses throughout the country and rent them out. Another market in renting back the apartments has developed in recent years. In the late 1990s, thousands of people purchased apartments to gain equity and also reap the rewards of living in conveniently located apartments; now, to release the equity, people are selling these apartments and trying to buy back the same property.

Many people love to live in apartments, because smaller rooms are easier to clean, major maintenance is handled for free by the landlord, no lawns need to be mowed, and the locations are usually close to cities and workplaces. Thus, many people would like to continue to live in their apartments while freeing up the equity that they have built up for other investments or consumption.

Refinancing a home is a popular method for extracting home equity. However, refinancing can lead to higher interest rates, added fees, and ultimately, higher monthly payments. The decreased equity over time can end up costing the homeowner more down the road. Hence, many homeowners seek to tap their home's equity without paying more monthly.

The only other way you can access your home's equity is by selling it. Usually this would involve having to move and buy a new home, eating up your equity. However, the sell and rent back technique has changed this, by allowing you to continue to live in your home without paying higher interest rates or monthly payments.