Harris, a financial planner and his colleague, Sean Ryan, an Adelaide-based solicitor, have developed a model that allows a senior homeowner the ability to use their home to generate cash flow for their future without the risks and worry that reverse mortgages present.
Dubbed a ‘popi’, the model does not erode existing equity, unlike other equity release products which involve either a loan or a part sale.
“It is not a reverse mortgage, there is no loan, no change of title, no corporate failure risk and a controlled release of funds. Further, there is no restriction on the use to which the cash can be put thereby allowing the homeowner to benefit from it according to their own needs as driven by the various stages of retirement. Early retirees may use the cash to travel and thereby experience a better quality lifestyle, whilst older retirees may want the cash flow to assist with the costs of in-home care."
“To preserve the desire of many to stay in their home rather than downsize the increased cash flow can assist in maintaining the property, which is a common concern amongst those living in bigger family homes.”