Generating income from your home
There are ways you can access money tied up in your home without giving up on home ownership. You can:
Trading down
Moving to a lower value home can provide money that will improve your lifestyle in retirement.
Make sure trading down your home is worth it
If you decide to trade down your house to provide you with more money over your retirement ensure that the expenses and other hassles associated with moving do not outweigh the benefits of the move.
Reverse equity mortgages
Equity release is a way to borrow money using your home as security that the loan will be repaid. When you die, or move, the house will be sold to repay the loan. For a clear outline of the types of equity release products and things to consider have a look at Sorted's equity release section.
Selling your home to family or whanau
Selling your home to family or whanau is an alternative approach. If you intend to leave your home to them anyway, they might be willing to provide you with financial assistance during retirement in the knowledge that when you die they will inherit the house. To protect yourself and your family you should get legal advice about making this a formal arrangement. Also make sure it's taken into account in your will.
Check these alternatives out very carefully. Get legal and financial advice.
