Week K Cue Cards

Question	Answer
What is house rich cash poor?	Home value - Mortgage Balance Retirement = drop in income, all money is in equity of home
Three forms of Home Equity Conversion	Reverse Mortgage Life Estate Sale Leaseback
Why move into retirement housing?	Too much space in home, Want accommodations Don't want ownership chores Live with similar aged people
Three Retirement options	Loan Stock Arrangement Shared Equity Arrangement Life Tenancy
A loan stock arrangement is where the tenant pays an interest free loan to sponsor of house project. Then it is refunded upon Death. T/F	True
Shared Equity is where the tenant buys a part of the dwelling and receives a portion of appreciation too. T/F	True
Life Tenancy is where senior prepays rent on a unit in lumpsum. Price of tenancy is based on age, marital status etc. T/F	True
What is a Life Lease?	Buying the right to live somewhere (not own it) and then you can sell rights to live there at market value
What is good about life leases?	Sense of community with board/property management etc.

Resource summary

	Created by dylan_earl over 9 years ago