Amongst all the challenges we are facing this year, a pandemic-induced-recession is likely to be a frightening thought for many. This will be even more concerning for those who were on the cusp of retirement, and now delaying their plans.
ABC Television's 7.30 program recently confirmed senior Australians have been among the hardest financially hit by coronavirus, as income and investment losses cause many to delay retirement.
Some key findings include the following statistics: "Roy Morgan data shared exclusively with 7.30 shows that in February this year, 10 per cent of 60-64-year-olds and 54 per cent of 65-69-year-olds planned to retire in the next 12 months.
"When the lockdowns took hold in March, that dropped to 8 per cent and 39 per cent respectively."
As senior Australians take stock and plan their next move, the family home may come into consideration as a source of funds. Fortunately for some, senior homeowners can keep retirement goals on track by accessing some of the equity in their homes.
Traditionally, accessing funds from the home has been difficult due to the "illiquid" nature of the asset, which keeps wealth tied up in the home, until sale. Older homeowners may consider downsizing and moving into a smaller home, but this may involve great compromise and sacrifice, with research suggesting most homeowners wish to stay in the home they love, if they can.
For over 15 years, Homesafe Wealth Release® has been a trusted solution which has remained different to other "equity release" products, by providing the ability to access a lump sum from the equity in the home, without going into debt. Thousands of Homesafe homeowners have used the funds to pay off debts, to live on, for in-home care, to fund crucial maintenance to the home, or even provide an early inheritance to family members, as some examples.
As a property transaction, the homeowner agrees to sell a share of the future sale proceeds of their home to Homesafe, in return for a lump sum payment today. Homesafe is not entitled to its share of the future sale proceeds until the home is sold by the homeowner or after the death of the surviving homeowner, with the unsold share of the sale proceeds retained by the homeowner or their Estate.
Homesafe is not entitled to receive any more than the agreed share of the sale proceeds, and if the home is sold earlier than Homesafe had originally assumed, the homeowner or their Estate may also receive some of the Homesafe share, via the availability of an Early Sale Rebate .
Homesafe Wealth Release is not a loan or a reverse mortgage, but a way to sell a share of the future value of your home - and receive the cash you need today*. There are no repayments and you remain the owner of your home until you choose to sell. Furthermore, as the share sold to Homesafe is capped, you have peace of mind that there is still a share of your home that you can leave to your family members. For more information please call Homesafe on 1300 307 059 or visit our website homesafe.com.au.
*Terms, conditions and eligibility criteria apply. Homesafe Wealth Release is available in 90% of eligible postcodes in Melbourne & Sydney.