Page 77 - Workbook3E

Create your own retirement plan
• Sale or Leaseback . Also called “life tenancy arrangements.” This is when the owner sells the property to an investor, retaining the right to live in the house as a renter. The investor pays the owner in monthly installments over an agreed-upon period and covers such obligations as home insurance, taxes, and repairs.
• Deferred Payment Loan. Such loans are usually provided to low-income people at a low interest rate by a local government. Homeowners defer payment of principal and interest until they die or the house is sold.
• Homeowner Equity Accounts. These loans allow you to borrow against a portion of the equity. This lets the owner set up a line of credit secured by a lien against the home. The owner can draw on this credit using a credit card or by writing a check.
The major drawback to using your home as collateral for a loan is you open the possibility of losing your home. Good legal, tax, and financial advice is very important so consult with a qualified financial advisor before making a move to sell property after your retirement.
What If You Want to Move?
If you decide you want to move, review your options the same way you examined your lifestyle. Some of the options available are:
1. Single-Family Home
2. Home within Adult or Retirement Community
3. Manufactured or Mobile Home
4. Condominium
5. Cooperative or shared Home or Apartment
6. Rent a Home, Apartment, or Condo
7. Lifetime Care Housing with room and board, recreation, and medical care.
“Better one’s House be too little one day than too big all the Years after.”
~ Thomas Fuller
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