Thinking of Homeownership? Consider Property Equity Release
There are many reasons to buy a home, but homeownership also has its drawbacks. One of these is the eventual need for money to fund retirement living costs or medical expenses. Property equity release can provide funding without having to sell your property and give up equity in it.
This type of loan can be used to fund retirement living costs or medical expenses. It is an alternative that may appeal to people who don’t want to sell their property and lose equity in it.
You should seek legal advice before going ahead with any such agreement, as there are specific laws governing the release of equity from your home.
You might wonder, “why should I strive for homeownership when I will have to get equity release later”?
It’s a question many people ask themselves when considering how they will finance their future life without relying on family members for money. If you’re not sure if homeownership is right for you yet, here are some reasons why it might make sense: You get help paying off your mortgage more quickly than renting would allow, your kids have stability and a sense of belonging, you have stability in your neighborhoods and schools, and there are tax benefits to homeownership.
Homeownership can be advantageous because you get help paying off your mortgage more quickly than renting would allow, giving you the freedom to retire with less debt or pay for college tuition without taking on loans.
The financial advantages may not always outweigh other considerations like the amount of time spent commuting or what neighbourhood is best for raising children.
Tenants don’t need capital gains taxes, but they do lose out on some property tax deductions, which renters could claim if their home were assessed as a second residence (this varies by province).
You should consider all these factors before making any decisions.