Money Matters:
(NC)— Home is where the heart is. Knowing this, many seniors want to spend their retirement in the home they have lived in for years. Often, however, the loss of income brought on by retirement makes this difficult and seniors consider downsizing.
While downsizing may seem like the best option for seniors in a cash crunch, this is not always the case. There are so many costs associated with downsizing, including purchase or rental price of the new home, real estate commissions, legal fees, and moving expenses, that the return may not be as great as originally thought.
Another simple and sensible alternative for those facing financial struggle in retirement is CHIP Home Income Plan, which allows seniors to access the equity they have built up in their home, while continuing to live there. With a CHIP Home Income Plan, Canadians 60 years and older can access up to 40 per cent of their home equity tax-free, and maintain ownership and control of their home.
“So many times I meet with potential senior clients who are hoping to gain and save money by selling their family home,” says Kelly Healy, a Toronto realtor with Sutton Group. “Once I understand that their motivation is purely financial, I will suggest they research a CHIP Home Income Plan and compare its costs and benefits to that of moving so they can determine which option is best for them.”
Adds Healy, “My experience has shown me that very often seniors prefer to stay in their home, a place that is familiar to them and around the people and places they love. The truth is, by unlocking the value in their home, seniors can often receive the same amount of money they'd save by downsizing, or even more. And they still continue to benefit from the future appreciation in the value of their home.”
More information on this topic is available at online at www.chip.ca or by calling 1-866-522-2447.
Source: www.newscanada.com
Visit Eddie the Dalmatian's Blog: www.frameyourpets.com
No comments:
Post a Comment