The Family Home

the-family

We have huge under-utilised assets in the family home; why shouldn’t it be used to accumulate wealth for those still earning a living and contributing to the system? If we take that away where will the money go? Certainly not in to our shaky share market with dismal results – maybe offshore to greener pastures? The worst possible outcome for home owners and our economy.

Our personal homes are a store of wealth and it provides more for self-funded retirees than anything else. Many baby boomers have worked hard to pay off their houses and yet are most likely to be the ones who will suffer the most having built up small holdings over the last 30 years.

The family home is the biggest asset most people will own in their lives and yet it is often overlooked as a way to build wealth or to form part of a financial plan, why? Are owners afraid to us this wealth due to risk factors or possible an old school mind set of passing the home to the next generation which forms part of their inheritance?

From renting a room to a reverse mortgage, the family home can be used to build wealth without a huge amount of risk involved.

Treasurer Scott Morrison has a plan in his “tax reform” to encourage home owners to release billions of dollars locked up in our homes. His idea is one in which retirees could sell the family home for a smaller property and pocket some or the entire surplus without reducing their eligibility for the pension and other government benefits. Sound too good to be true perhaps? Would letting go of your biggest asset, and one that can be used to build further wealth, be something attractive to you?

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