Alan (aged 69) and Wendy (aged 65) live in their unencumbered home in Sydney’s Northern Beaches. They also own a holiday home on the South Coast.
Wendy is still working as a consultant. However, for the past 6 months she has been sick which has reduced their income considerably.
Alan is retired and they are reducing the self-managed super fund capital to meet their current living costs due to the drop in Wendy’s income. They have gotten a Reverse Mortgage to pay out the credit card debt they have (approximately $16,000) and then have funds available for living costs until Wendy recovers. Then going forward to have funds available if required for ongoing expenses if needed and one off discretionary costs.
They have plans to sell their Northern Beaches home and move to their holiday home on the South Coast in 5 years time.
As they have over $3million in assets and the loan maximum facility will be less than 10% of this they will most likely still leave a large inheritance and they will have funds to pay for aged care costs in the future, it is more than likely that the property will appreciate by more than the cost of the loan, especially if the sell and pay it out in five years time.
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.)