Equity Release

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Andrew Krajewski

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Equity Release

by Andrew Krajewski » Thu Jan 29, 2015 7:44 pm

Equity Release is a way of giving your children some inheritance money early
possibly to use as a deposit for their first home.

On the face of it and excellent idea
and maybe for some families it's the only way of helping their children
get on that property ladder.

For me it would be the last resort
because you are handing control of your home to a business
and you don't know how your circumstances might change in the future

I'd be interested to hear from anybody that has gone down this route
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Joan

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Re: Equity Release

by Joan » Wed Oct 28, 2015 7:44 pm

Many people over the age of 55
are finding that they are asset rich
but cash poor due to poor pension performance

Consequently using equity release is on the increase
In the period June to September 2015
a staggering £5 Million a day was unlocked from homes.

The withdraw money being used
to boost pensions, help off-spring get on the property ladder, care home fees, etc
as well as treats such as holidays, cars, etc

Please read the SMALL PRINT
because the costs are pretty steep
and the penalties for withdrawing once in a scheme can be eye-watering
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Anneq

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Re: Equity Release

by Anneq » Thu Mar 24, 2016 12:54 pm

it is always best to look at how to get a better performing pension before looking at other options. Your pension should be working hard for you, if it isn't you have a right to ask why
Anne Quinn
Anti Poverty Advocate
Skype annemariequinn
Facebook page Essentially Animal
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Peter

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Re: Equity Release

by Peter » Fri Mar 25, 2016 7:36 pm

Anne I couldn't disagree more with you.

Why put money in a pension plan over which you have virtually no control?

Most pension funds invest in shares and we all know how volatile the Stock Exchange is
which is why many pension funds have been loosing money.

To my mind, property is a much better investment
because it continues to perform well, I understand it and control my property portfolio
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Andrew Krajewski

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Re: Equity Release

by Andrew Krajewski » Wed Mar 30, 2016 6:53 pm

Peter you're right.

I've just read that almost £6bn has been taken out of pensions since the reforms,
and of that up to £800m has been diverted into property.

In total a third have withdrawn to reinvest,
while a quarter have paid off debts
and a fifth have used pension withdrawals as income.

Of those that re-invested
42% have reinvested their money into new property purchases or improvements.

Clearly property is a big pull for people that feel
a pension fund is not the best vehicle for their retirement

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