buy azur samui properties

Let’s say someone needs $800 or £800 a month to pay for their retirement home. There are a number of ways to achieve this. The two traditional ways are selling your family home and using the capital or getting a reverse mortgage. Another way though is to calculate the amount you need and pay this from investment income. Let’s look at these three ways.

1. Get a reverse mortgage on your property

    == > Rental income pays your retirement home

Without selling the family home, and perhaps renting it out instead, a retirement home can be funded by a reverse mortgage. A reverse mortgage enables a person to borrow money against their equity they have in their existing home,.

When the reverse mortgage is taken out, which means the borrower gets a large amount of funds to invest in their retirement home, they don’t have to make repayments. The interest charged is added  to the outstanding loan principal.

Because the interest compounds it erodes the equity value in the persons home. For this reason while it is a good way to get funding for a retirement home it is best to talk to your professional advisor.

2. Sell an existing family home and buy a place in the retirement village

     ==> Capital profit from your family home pays your retirement home

The most normal way to fund a retirement home is by selling the family home by downsizing and moving to a retirement village. Unlocking the funds to obtain the retirement home property is an excellent option for many residents. It unlock funds that would otherwise be difficult to get hold of.

3 Establish a revenue stream to fund the retirement home place

   ==> Investment income pays for the place in the retirement home

If a family home is sold and the money invested in a term investment the investor will only get 1 or 2 percent.

There are better investments available.

In fact investing in retirement homes can pay a steady income stream of around 8% that can be used to cover the monthly costs of staying at a retirement home.

Many retirees now live beyond the age of 90, Investing money in assets that produce a steady regular income is a good way to protect this situation.

Direct investments like investing in a Retirement home hey pay interest, usually a fixed amount,  to their investors and that yield is usually higher than what you can get from stock dividends.

As an example say a person needs $800 or £800 a week for their retirement care. that’s about $42,000 or £42,000 a year. If they invest and achieve 8% per annum they would need to invest around $550,000 or £550,000 to achieve this.

Find out more on Raughton Manor – a care home that offers an 8% return on investment tax free – here

Sharing is caring!