Reverse Mortgage Scheme for Senior Citizens

[Dheep Chawla]

How do you think the reverse mortgage scheme can help the senior
citizens in times of their retirement ?
If we are talking about mortgaging their house against the loans for
the perodic income, is it worth ? as this may be the only asset they
might have and as Indians people are very adamant when it comes to
their property because they would obviously like to leave it as estate
for their heirs..

Again, when we talk about the reverse mortgage scheme, though it is
still at a very nascent stage in India, it will pick up pace soon but
a point to be considered is that the senior citizens will have to
mortgage their house for their living.

So what is the solution to this ? are there any other schemes
available specifically for the senior citizens that can take care of
them in the golden years of their life?

[naveen fernandes]

Dear Dheep,

You seem to be emotionally interested in the subject. More of us
should be!

I might not be the originator of the idea, but I recommend my clients
to plan 2 home purchases during their working life. The key is good
location, NOT the size of the home. One house would be for self
occupation, the other for rent. There are good tax breaks for this and
that will help reduce the cost of the houses. One house in the primary
ownership of each spouse.

Let both be offered on reverse mortgage, which will bring 2 income
streams, plus another from the renting of one house - 3 income
streams!

The progeny can pay to get the properties after parents death. That
way they may also feel that they have earned some portion of the
house, having "taken care" of the parents cash needs in their old age.

Here you have also taken care of the Estate to children part.

Regards

Naveen

[Dheep Chawla]

Thanks Naveen !

And what do you think about the reverse mortgage scheme ? How easy or
difficult is it going to be for the common man to accept this scheme?