“My Property Is My Pension Fund”.
“My property is my pension fund” has been said countless times and all too often is not the case at all. In fact, the opposite is true, the property becomes a cost burden limiting the owner’s ability to use the money locked inside their property after working hard during their working life to enjoy it.
Over the years, clients have explained that as they approach retirement all the things they are going to do once they reach that new and exciting stage in life at retirement. Travelling, how they wish to help their children or grandchildren with financial gifts, or even just enjoying nice meals out with friends without worrying about work or money.
All too often none of their dreams become a reality because they remain living in a valuable property and never unlock the capital to enable them to realise those dreams.
How to unlock that value.
There are a number of solutions to unlock the value of your property and enjoy those retirement dreams. The most obvious way to unlock the value in your property would be to sell and repurchase at a lower value. For example, a property value sold at £800,000 and a purchase at £500,000 releasing £300,000 to use as you wish. The difference could be used for any of the following as just a few examples;
- Investing to create an additional monthly income
- Investing for access as and when needed
- Invest for inheritance tax planning
- Gifting to family to help the next generation
- A mixture of all of the above and many more options