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This equity is a source boomers can tap inretirementfor everything from additional income to investing purposes.
Experts explain how boomers canmake the most of their equity in retirement.
The major question, whether youre a boomer or not, is how to access that, he said.
But an equally important question is why are you accessing it?
To move, to invest it, to leave it as a legacy?
Are you really downsizing or going to some rental?
The hard part is rents are also pretty expensive in a lot of markets.
Its not like a lot of times you could rent for drastically cheaper than you could own for still.
So that is always a pretty personal choice for that homeowner.
You also must keep tax implications of a sale in mind, he urged.
Ultimately, this decision should be made strategically.
Another option, which his company offers, is a vehicle called ahome equity investment.
So its not a debt product, it doesnt matter what your income level is, he said.
Theresno monthly paymenton it, so they can get into the equity as they just, he explained.
Most people use it to pay off debt because things have gotten expensive.
So this is a perfect product to do that.
Then youre not changing your monthly cash flow as you age.
He shared that theres also a new company calledPadSplitthat effectively turns a normal single-family residence into a boarding house.
This could be a solution to cities that are cracking down on short-term rentals like Airbnb.
This can be an innovative way to access funds while minimizingimmediate repayment burdens, he said.
Real Estate Syndications
Another effective strategy is to consider local real estate syndications, Waters said.
Boomers like this option because they can pass the unit on to their families after they die.
Its aneasily managed assetto guarantee cash flow every month and it helps with capital gains taxes, if applicable.
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