Unlock your wealth

Written By Andrew Ford

13 July 2017

Money doesn’t grow on trees, but it can be harvested from your own home

The value of residential property in Australia this year has now reached $7 trillion, up from $6.5 trillion at the same time last year. This is over three times the value of all of the money held in superannuation and almost four times the value of the share market*.

The growth has been underpinned by strong increases in property prices in capital cities – in particular Sydney and Melbourne – where median house prices have increased 61.9% and 28.9% respectively over the last five years*.

Higher property prices can make it tougher for first home buyers, and a recent study showed that 30% of Australians expect their parents to assist them in buying a property*. However, it does help seniors in accessing funds during retirement.

Almost 85% of Australians aged 65+ own their home^ and, for most, it is their most valuable asset+. For these Australians, using the home to release some equity – through downsizing, selling a portion of the property (reversion) or a reverse mortgage – can be a great option.

The beauty of a reverse mortgage is that you continue to own 100% of the home, benefit from any appreciation in property prices and avoid many of the costs associated with downsizing such as real estate fees, moving costs and stamp duty. Many of our customers use the funds released to renovate and improve their property – adding further value and effectively investing in their biggest asset.

Other great uses include using funds to travel, refinance existing debt, upgrade a motor vehicle, or just to take the stress out of everyday bills. We are proud to have helped thousands of Australians enjoy a better retirement.

Whether you are an existing customer and have questions about your loan, would like to talk about applying for a Further Advance, or are looking at Reverse Mortgages for the first time, please feel free to contact our friendly team on 1300 889 338 or enquiries@seniorsfinance.com.au. We are here to help you.

 

*Information sourced from CoreLogic reports. ^Australian Bureau of Statistics 2015, Housing Occupancy and Costs, 2013-14. +Australian Government Productivity Commission 2015, Housing Decisions of Older Australians, Chapter 3.

 

 

 

 

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Andrew Ford, CEO, Heartland Seniors Finance

Andrew Ford is the CEO of Heartland Seniors Finance and has been with the Heartland group for over 15 years. He is passionate about reverse mortgages and the difference it can make to the lives of seniors.

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