LAW OF THE LAND
With Nick Earl
As we age, our incomes often shrink and our living requirements change. A large family home, for instance, can become both physically and financially difficult to manage.
There are several living options to consider in your retirement years – your choice will be dictated largely by your health, lifestyle and personal preference.
Popular options are downsizing to a smaller home, moving into a retirement village, purchasing a property with your children that includes a ‘granny flat’ and staying in your original home but freeing up cash with a reverse equity mortgage.
As with any property purchase, it is important to consider the legal, as well as the emotional, implications.
Downsizing may mean a smaller house to maintain, but it can be a complete change to your surroundings and often requires the disposal of surplus furniture from your larger home, and renovations to align with the style you are accustomed to.
Retirement villages offer resort-style facilities and the opportunity to form new friendships, however at most villages you will incur a village contribution fee on re-sale, which can total between 20 and 30 per cent of your initial licence fee.
Moving into a ‘granny flat’ with family on your doorstep will give you the support you need as you age, but steps should be taken to protect any investment you make into the property.
A reverse equity mortgage can provide you with the means to lead a comfortable retirement, but can erode equity faster than you may have anticipated.
Your individual circumstances will ultimately determine how and where you choose to live, however it is important to seek sound legal advice when weighing up your options, so you can make an informed decision that best serves your interests.
- Weekend Sun, July 28, 2017
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