Cash in your equity (CHIP), or not ?
I've spent the last couple hours sifting through the CHIP website (http://www.chip.ca/index.cfm?id=103) -- Canadian Home Income Plan.
As you know, I recently earned the SRES designation (Seniors Real Estate Specialist), so I thought maybe I would write about a program which permits home owners to remove up to 50% of their equity in their home to use as a liquid asset. Those eligible are home owners over the age of 55.
In my opinion there are many merits to CHIP, but I think the age minimum should be at least 62. Obviously, everyone should anticipate living to at least 80 years old.
The CHIP link is included here for your homework.
Keep in mind, the purpose of this program is to assist a home owner in the 'aging in place' idea, which means there is nothing wrong with taking a couple vacations or buying a car, but the monies should be earmarked to both daily living expenses and home improvements -- perhaps a fully accessible bathroom.
At the end of the day, I firmly believe all home owners should stay in their residence until they require some type of assisted living like an apartment. Even then, consider purchasing the apartment (condo) to continue to hold equity in real estate. The difference from selling a house could then be utilized for daily activities.
Every case is different. Call me if you want to discuss this CHIP idea versus down-sizing your home ownership.
Mark Schadenberg
Royal LePage Triland
(519) 537-1553
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