Life happens! How using home equity can help deal with the unexpected

Life happens! How using home equity can help deal with the unexpected

No matter how much we plan and try to prepare for the future, it’s impossible to predict and be ready for every possible event – especially when we are sometimes hit with more than one unexpected crisis or emergency at the same time.

Whether still working, semi-retired or retired, this can be especially difficult to deal with in your later years when you are faced with limited income and finite savings and resources.

Family illness is something that impacts almost everyone at some time in their lives and even more so when we are older. Knowing this however does not make it any easier to deal with and despite having all the right medical insurances in place, there are often service gaps and other hidden costs such as home modifications and expensive equipment (i.e. mobility scooters, walking aids, wheelchairs) that are required to care for loved ones at home. It might even be the case that a higher level of care or full-time care is now needed.

What if you’re already dealing with big ongoing medical costs and are suddenly faced with another unexpected turn of events that impacts on your wellbeing and finances?

This was the case for Sydney builder, Jeff, who continues to work and run his own successful business at the age of 72.

An unexpected halt to a building project along with the associated flow of revenue was the straw that almost broke the camel’s back according to Jeff: “when combined with a continuing drain on finances due to a family medical condition.”

“The extraction of equity from the private residence ensured the continuity of operation of my business,” he said.

“I was very fortunate that Smooth Retirement was able to be of such timely assistance in securing some equity from the house to keep us going during a challenging time.

“Scott and the team made it very easy for me to withstand the storm at the time and I am still impressed by their professionalism and friendly approach to doing business.”

Smooth Retirement CEO and Managing Director Scott Phillips said using home equity via a reverse mortgage could be a sensible solution for over 60s in managing unexpected costs or drains in cashflow – in this case, the persistent cost of a high level of care that was, in part being funded via a loan from the company.

“If you own or mostly own your own home, accessing some of the value in that property now can make all the difference to your situation,” Mr Phillips said.

“It can take the immediate pressure off, solve short-term cash flow and capital problems and mitigate the need to sell the home and move, particularly at an already stressful time.

“As always, the right planning and advice is all important when considering using home equity in this way.

“It’s crucial that you fully understand the process and all the outcomes and that you are provided with the right assistance and guidance so that it is not only your immediate concerns that are addressed but there is provision made for your longer term needs as well.”

For more information, book a free, no obligation Reverse Mortgage Eligibility Check or call our team today on 1300 510 015.

Smooth Retirement Pty Ltd is an independent service providing expert guidance in equity release and retirement income planning Australia-wide. ABN: 46 619 010 445; AFSL 510015; Australian Credit Licence: 510015; smoothretirement.com.au; info@smoothretirement.com.au; 1300 510 015. Terms, conditions, fees and charges apply. 

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