The Secrets to Home Reversion Planning
Making the decision to retire can be a difficult and daunting task. Choosing where to live, how to invest your money, what hobbies you’ll spend time on, and which friends will become your support system are all important considerations in this life-changing event. But there’s one aspect of retirement that many people don’t think about: how will you pay for it?
Many seniors rely solely on their savings once they stop working full-time; but with the rising costs of healthcare and property taxes, this is no longer an adequate source of income for most retirees. Fortunately, there’s another solution – home reversion plan!
Home reversion plan is a type of reverse mortgage that allows homeowners to live in their property for free while receiving all the benefits and tax advantages. You can take as long as you want to make payments, but when it’s time to move on, your home will be sold so you have enough money saved up to retire comfortably!
This plan comes with many benefits, including:
Freedom from worrying about healthcare and property taxes (concerns that are sure to become more difficult as you age), the opportunity for a monthly income stream, even if your home is paid off! A guaranteed return on the equity in your home. If we’re able to sell it at market value then you’ll get 100% of what’s owed back. It doesn’t matter how much time has passed or when you decide to retire; in the end, this will be an investment worth making.
However, there are some drawbacks too, including:
The amount of equity in your home may be a concern – typically, the less equity you have, the larger monthly payments will be. And if we’re unable to sell it at market value then that would mean you’ll receive no return on investment. If interest rates go up while you’re making payments and selling-on is impossible because there’s nowhere left for people to buy property, then even though this plan offers more security than other options such as stocks or gold, it also entails taking risks like any type of investment does.