Originally Posted by
percy
Questions for you Baa Baa.
Great uncle Baa Baa is 75 years young.
He has a mortgage free property in Auckland with a market value of $1.1 mil.
The only income he has is super.
He would like to visit friends one last time in UK.
He loves where he lives.Near his doctor,his bank and supermarket.Loves his house and does not want to leave it.Prefers to live alone.
Borrowing approx $80,000 he can do up the bathroom,have his trip and some other things.
No bank will lend him $80,000 as he does not manage on his super.
So $80,000 at REL interest rate of say 8% is $6400 pa.
Now how much pa do you think his property is increasing in value pa.10% would be $110,00.pa
So staying in his house,not paying huge fees to trade down he is miles better off.
He lives to 90. Please compound how much better off he/estate will be by him staying put.!
As we can see old great uncle was where the Baa Baa family brains came from.