Australian Property News

Retirement income can be found in the family home

Posted on Monday, February 01 2010 at 10:05 AM

Rising home values can benefit retirees, according to Homesafe Solutions.

Managing director Peter Szabo says many homebuyers don't realise they can unlock equity in the family home without selling or going into debt. "The family home is the largest asset for most retirees and equity release enables you to use it as a source of retirement income," he says.

"Many retirees have been battered by the sharemarket over the past year but for those with their own home, the silver lining has been strong house price growth."

Szabo says there are products available that enable you to get a much-needed injection of cash, but unlike a reverse mortgage you don't have to take out a loan.

Instead, in exchange for an upfront cash payment, homeowners agree to sell a share of the future value of their home.

Homeowners are urged to seek independent financial advice before acting on this information.