| A reverse mortgage is a widely misunderstood | | | | mortgage (lump sum cash out option) and pay off |
| financial tool. For those of us who understand this | | | | their home mortgage - and never make another |
| new loan program we wonder, when will the tipping | | | | payment as long as they live in this home, never. |
| point of consumer education occur? When will more | | | | With the additional $150,000 cash out they can buy a |
| people choose to embrace this incredible loan | | | | condo hotel, possibly free and clear. Use it luxuriously |
| program for seniors? | | | | for 30-60 days when the winter winds blow. The day |
| For me a reverse mortgage is simple, I get my cake | | | | the senior checks out of his condo, the hotel |
| and to eat it too. I get to keep my home 'until the | | | | seamlessly rents the property and the owner shares |
| day I and my spouse die' without any mortgage | | | | in the rental income. Conservative figures in many |
| payments, and I get my money out and liquid for | | | | properties may produce $6,000+ a year in income |
| other investment, or use, for the rest of my life. | | | | above the condo dues, and tax expenses. |
| The main question to ask is: "what could I do with | | | | This is potentially $6,000+ in tax deferred income |
| my home equity that would safely generate more | | | | since property depreciation will help offset rental |
| income for my lifestyle?" | | | | income. |
| Here's where another new real estate innovation | | | | Reverse mortgages and condo hotels are complex |
| comes in, the condo hotel. Condo hotels are suite or | | | | financial tools and should not be entered into without |
| condos within the luxury of 4-star or higher hotels | | | | understanding all the details and how these loans may |
| that individuals can own, use, and rent as part of the | | | | effect your unique personal financial situation. Real |
| hotel on a nightly basis - without any rental hassle. | | | | estate speculation is risky and should be considered |
| The hotel rents your condo whenever you are not in | | | | as such, this article is not meant to sell any specific |
| residence. The hotel management handles all the | | | | property. These figures are not in any way based on |
| maintenance, and treats the owner-guest to luxuries | | | | any actual property and are just an example of an |
| that are beyond typical vacation condo ownership. | | | | idea which many baby boomers will wish to explore |
| Here's how the math might work. If a senior wants a | | | | further as they search for the right retirement |
| second home/condo in a warm and sunny destination | | | | residence options. Being creative and open-minded |
| for 30-60 days a year, but always wants a home in | | | | about new options will benefit the lifestyle of future |
| the northern location, but doesn't want to drain their | | | | retirees. |
| savings and certainly does not want to be payment | | | | These and other creative retirement home strategies |
| strapped with 2 homes, expenses, utlitlies, decorating | | | | are explored in a new book called "Besting - Better |
| expense etc. | | | | Nesting" about new forms of retirement and vacation |
| Let's say the "midwest home" is worth $300,000 and | | | | ownership like - condo hotel, fractional, private |
| has a $50,000 mortgage with $700/mo in payments. | | | | residence clubs and timeshare. |
| The senior can borrow $200,000 on a reverse | | | | |