Equity release from property

investment

whats your rental return - need to go through each property case by case

lopin10 said:

Taking the total value of the properties of €2.5 million and if the property were to increase by 33% every 5 years it would give me an income excluding rent and based on 60% equity realease of about 100k pa.
Is this a good way to finance my retirement any similar people with good advice

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No no no! depending on equity release for a retirement fund is asking for trouble
have you considered other ways of investing your money?

Thanks Blind justice.Why is releasing equity from property such a bad idea? What better investments are there ? You cant use most pensions until you are 65 want to retire at 55 im now 46

Equity release is debt creation. For every 1E you release in equity, you increase your debt by 1E and that debt has to be serviced. Nor can you rely on banks allowing you to release equity - so if you need the property to fund your retirement, you may have to sell the property rather than increase the outstanding debt on it.


Personally I wouldn't touch the idea with a barge pole. I'd get the principles paid off ASAP and then cash in the properties and deal with cash rather than property but then I'm not a risk taker.