Retirement should be a time to relax — whether it means finally getting around to that passion project of yours, heading off on a Fiordland trip, or just spending time with the grandkids. However, there are still many important (and sometimes difficult) decisions to be made once you hit retirement.
One crucial thing to consider is what kind of living situation you want, either now or in the future. Here are some of the most common options.
1. Selling or downsizing
Some people use retirement as an opportunity for a fresh start, whether it means selling their primary residence and downsizing to a smaller place, moving in with family, or moving out to their bach. Selling is a great option for people who aren’t too attached to their family homes, would like a little more cashflow in retirement, and don’t mind possibly moving further away from friends and family in the local community.
2. Moving into a retirement village
Another path many people choose during retirement is to move into a retirement village. This is a good option for those who might be tired of managing a large house or property and would like to be involved in a new community of likeminded people. It is important you understand the terms and conditions of the retirement village, including that you are not going to benefit from any capital gains (like you would in your home).
3. Ageing in place
For many people, there is sentimental value in the family home — not to mention in the relationships with neighbours and the local community. For these reasons, more and more people are wanting to age in place from the comfort of their home.
This can be a real challenge for those who don’t want to leave or sell their house but have the majority of their wealth tied up in the property.
Reverse mortgages can be a great way for Kiwi homeowners to age in place and still be able to fund their dream retirement. By accessing some of the equity in your home without needing to sell, you can continue owning and living in your home and community for as long as you choose.
One of the biggest benefits of a reverse mortgage is you are not required to make repayments, as the total loan amount (including accumulated interest) only needs to be repaid when you move permanently from your home. Some lenders also offer the option of a cash reserve facility, which makes it quick and easy for you to access further funds as and when you need them.
Over 20,000 Kiwis have chosen to age in place and fund a more comfortable retirement through a Heartland Reverse Mortgage. To find out more about applying or getting more out of your reverse mortgage, get in touch with their customer care team on 0800 488 740 or reverseinfo@heartland.co.nz to discuss your options.
Applications are subject to loan approval criteria. Heartland Bank Limited’s responsible lending criteria, fees and charges apply