HOME EQUITY RELEASE
How Does It Work?
To learn more about our home equity release…
- Our home equity release partners a retiree (or retired couple) with one of our accredited investors.
- The partnered investor will purchase your home, paying you market value less an agreed discount. In return for this discount, you are granted a legal life estate over the home 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, plus, the agreed sum paid to you by the investor.
- 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 end-to-end process 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 Equity Can I Unlock?
To get an estimate on how much equity you could unlock…
- Just as you and your 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 equity we believe could be unlocked from your home.
- The key factors that influence how much investors will offer are:
- The market value of your 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 to receive offers of 40-60% of the market value of their home. Those aged 85 can expect offers of 60-80% of the market value of their home.
- We always seek out the best possible price 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…
- Access to substantially more capital than competing solutions (e.g. reverse mortgages or home reversion schemes).
- All proceeds are tax free.
- Proceeds may be contributed to super under the downsizer contributions scheme and used to generate tax free income in retirement.
- Security of tenure with legal ownership of your property for life.
- No debts or accumulating interests.
- No rent, ‘ground-fees’ or additional on-going expenses.
- 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.
Australia’s Retirement Rental Crisis: The Hidden Epidemic and Affordable Housing Solutions
Unlocking Affordable Housing and Pension Eligibility with Life Estates
Finding Your Forever Home: Affordable Housing Options for Australian Retirees
From Renting to Owning: How Life Estates Can Help Australian Seniors Achieve Home Ownership
Funding Your Future: How Home Equity Release Can Support Aged Care Choices
