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It's your home. Yes, your very own property. You own it, so why not?
You can now draw on the capital value of your home, especially since it has increased over the years.
Why not utilise this readily available source to fund your retirement needs now?
You've worked hard and build up that value so you really have earned a good retirement.
You may have also benefitted from significant house price inflation over the period of your owning the
property, too.
So you have actually been making a very good investment of your money over the years.
Now you can draw on the combined effect and be able to afford to live a more enjoyable retirement
lifestyle, and afford the things you want or need.
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Home Equity Release is a relatively new financial facility in New Zealand. You won't have heard
much about this in our country until recently.
It allows you to draw down money against the value of your home without having to sell down and move,
disrupting your established network of friends.
It is designed for retirees aged over 60 and the money borrowed can be used for any purposes. You
choose.
The loan does not need be repaid until you choose to move out and the home is vacated voluntarily, or
the home owner or both nominated residents die.
There are some very responsible safeguards built in to the best of the available funding schemes.
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"Selling down" means selling your present home and buying another cheaper one just to get cash
out of the difference.
But you don't want to "sell down" just to get more money because it could mean loosing your
local network of friends, services and places that you've built up over years.
Now you don't have to. You can actually access the value that has built up in your present home by
using the home equity release option.
That's one of the aims of home equity plans. And it is really providing a great benefit to retired
people who own their own home.
I'm happy to provide you with assistance to find out about this.
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Yes, but you don't have to pay interest on the loan while you are still alive and live in your
home. That means it doesn't come out of your current retirement income. That takes away such a burden.
Interest accumulates on the loan and has to be paid when the loan is repaid. This could be -
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when you sell the house to move out to another place,
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when your estate sells the house after you have passed on.
In either case, the general inflation in house prices may well have seen a rise in its value that more
than covers the interest.
I can provide you with a schedule of likely interest that will allow you to see this effect.
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