{"id":1283,"date":"2016-10-14T15:16:00","date_gmt":"2016-10-14T04:16:00","guid":{"rendered":"http:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/2016\/10\/14\/5-ways-to-release-capital-from-your-house-to-fund-retirement\/"},"modified":"2016-10-14T15:16:00","modified_gmt":"2016-10-14T04:16:00","slug":"5-ways-to-release-capital-from-your-house-to-fund-retirement","status":"publish","type":"post","link":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/2016\/10\/14\/5-ways-to-release-capital-from-your-house-to-fund-retirement\/","title":{"rendered":"5 ways to release capital from your house to fund retirement"},"content":{"rendered":"

\"\"<\/h3>\n

1.\u00a0\u00a0\u00a0 Downsize<\/h3>\n

Approaching retirement, you\u2019re likely to have a substantial amount of equity built up in your home, or you might own it outright. When you consider the expenses involved in upkeep of your family home, and the work you need to do to maintain it, downsizing can be an attractive option.<\/p>\n

Downsizing could reduce your bills while freeing up more cash for your retirement. You can then use this money to invest \u2013 for example, in shares, term deposits, managed funds or superannuation, or even an investment property that pays you an income.<\/p>\n

2.\u00a0\u00a0\u00a0 Consider a change<\/h3>\n

Perhaps you don\u2019t want to downsize, but you\u2019d like change of scenery? If you live in one of Australia\u2019s capital cities, taking a sea or tree change could also free up cash for retirement, without necessarily having to downsize.<\/p>\n

A sea or tree change doesn\u2019t need to involve moving a great distance \u2013 just moving further out from the CBD can make a big difference. Make sure you consider what\u2019s most important to you \u2013 including the availability of healthcare. You may want to try renting in a new area first to decide if it\u2019s for you \u2013 as mistakes can be expensive.<\/p>\n

3.\u00a0\u00a0\u00a0 Build a backyard granny flat<\/h3>\n

If letting go of the family home seems too much or isn\u2019t financially beneficial, why not build a granny flat in the backyard to bring in some extra income? In most Australian states, you can build a granny flat up to a defined size in your backyard without having to subdivide \u2013 check with your council to find out the rules in your area.<\/p>\n

4.\u00a0\u00a0\u00a0 Convert your home to dual occupancy<\/h3>\n

If your family home is large, you could consider converting it to a dual occupancy, or rent out some rooms. Depending on the way your house is set up this could be cheaper and easier than building a granny flat, although you would need to give up some of your space or privacy.<\/p>\n

5.\u00a0\u00a0\u00a0 Take out a reverse mortgage<\/h3>\n

If you have a good amount of equity in your home and need cash, a reverse mortgage may be an option. Here\u2019s how it works: you borrow against the value of your home, and the lender pays you the amount equal to the equity that is released from the home. Once you decide to sell or the last surviving borrower passes away, the outstanding loan must be repaid.<\/p>\n

There are some disadvantages and risks you\u2019ll need to explore, for example, the interest rate on reverse mortgages is usually higher than on home loans, or you may run out of money if you live longer than expected.<\/p>\n

Get advice<\/h3>\n

Remember, all these options can have unintended effects on your tax, your age pension entitlements and your financial wellbeing. So it\u2019s important to speak to a financial advisor to make sure you fully understand the benefits and risks, and to help choose the best option for you. Call us today on |PHONE| to discuss your options.<\/p>\n","protected":false},"excerpt":{"rendered":"

1.\u00a0\u00a0\u00a0 Downsize Approaching retirement, you\u2019re likely to have a substantial amount of equity built up in your home, or you might own it outright. When you consider the expenses involved in upkeep of your family home, and the work you need to do to maintain it, downsizing can be an attractive option. Downsizing could reduce […]<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[19],"tags":[],"class_list":["post-1283","post","type-post","status-publish","format-standard","category-general-articles","entry"],"_links":{"self":[{"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/posts\/1283","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/comments?post=1283"}],"version-history":[{"count":0,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/posts\/1283\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/media?parent=1283"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/categories?post=1283"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/tags?post=1283"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}