(21/06/2024)
Reverse Mortgages NSW: Loan Scenario of the Week
Graham (78) lives in his house in Southern Sydney. He has lived here for the last 25 years.
Graham is taking out a reverse mortgage to cover his everyday living expenses. Graham owns a second property in the Southern Highlands. However, the house is in a very poor condition and is uninhabitable so he cannot earn any income from it, but because he owns it Graham is unable to get the aged pension.
Graham has now run out of super. He has been living by selling of investments such as gold and pawning things, as well as getting some money from his son. However, this lifestyle has now become impractical, and he wishes to do a reverse mortgage to fund his lifestyle. He wishes to draw down $2000 to $3000 per month for the next 10 years. He also needs to pay some debts which he owes $20,000.00.
The loan will allow Graham to live comfortable for the next 10 years, when this timeline lapses or he uses all his facility we will re-evaluate. By keeping the investment property and doing the reverse mortgage Graham can continue to see strong capital growth from two properties as his house is worth over two million dollars and his investment property is acreage in a excellent location in the Southern Highlands. The amount of equity Graham is drawing from his property and the interest it will accrue should be tiny compared to the capital growth he will receive. Both Graham and his son have concluded that for the family the reverse mortgage is a much better option.
If you would like to know more about how a Reverse Mortgage can help you achieve your lifestyle aspirations please call Raymond on 0438 184 784 or Nicholas on 0438 184 785.
(Names, locations, amounts, & other personal details have been changed to protect the client’s identity. This post does not constitute advice.)
Reverse Mortgages NSW: Loan Scenario of the Week (14/06/2024)
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