AFFORDABLE HOUSING
How Does It Work?
To learn more about our affordable housing…
- Our affordable housing partners a retiree (or retired couple) with one of our accredited investors.
- The partnered investor will purchase your desired home and in return for a financial contribution which you make towards that purchase they will grant you a life estate over the property, entitling you to remain the effective legal owner, for life.
- The life estate is legally lodged as a caveat on the property title, leaving you with debt free ownership of the home for life.
- Only after your passing (or that of your surviving partner listed under the life estate) does possession of the home transfer to the investor.
- We manage and coordinate the entire process (with the exception of finding your ideal home – you get to do that) to ensure you get the most competitive outcome possible.
- You can stop the process at any point if you no longer wish to proceed.
How Much Does An Affordable Home Cost?
To get an estimate on how much an affordable home costs…
- Just as you and your desired home are unique, so is every Life Estate transaction so no precise or exact metric exists to determine this in advance.
- We are able to provide (at no cost) guidance on how much an investor would likely contribute to the cost of purchasing a home. This will help you understand your budgeting constraints in your property search.
- The key factors that influence how much investors will contribute are:
- The market value of your desired home
- Whether it is a house or an apartment
- Your age, and
- Your marital status
- As a rough guide, retirees aged 65 can typically expect investors to pay between 40-60% of the market value of their home with the retiree/s to cover the balance. Those aged 85 can expect investors to pay between 60-80% of the homes purchase cost, with the retiree/s to cover the remainder.
- We always seek out the largest possible investor contribution for you by presenting the opportunity to invest in your property (and your retirement) to our pool of accredited investors and soliciting competitive bids.
What Are The Advantages?
To learn more about the advantages of a life estate…
- Delivers a significant reduction in the cost of home ownership (typically 50%+ off the purchase price).
- Can be structured to reduce your financial assets and improve pension eligibility.
- Any home that is for sale is eligible – there are no constraints or requirements for you to buy within predetermined communities or villages.
- Security of tenure with legal ownership of your property for life.
- No debts or accumulating interests.
- No rents or additional on-going expenses beyond those typically associated with home ownership.
- You may rent out your property to generate income if it is no longer suitable for you to live in, and you receive the entire benefit of that rent.
- No complex settlement arrangements for your estate to manage on your passing and no debts to be repaid.
- Peace of mind knowing you own the roof over your own head.
