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Arn't work every day. I got mouth, I got fee, so I'm gonna make sean everybody is. I got big Polly's built.
Find my test day looking like a mouth. All the little kids run around. I can hear this comach's crowd. There's a full moon out to my card house. Says it gonna leave me and Pa'll come home at fifty thousand.
All then then well then on then oh man a man, old man.
A man.
I had a very good afternoon. If you've just joined us, this is the Weekend Collective, you're like, it's five o'clock, just gone five o'clock. Anyway, I'd say that because of course the show starts at three. We had Politics Central Chris Pink talking about the reform in the whole building consent process, followed by Shane Jones, who, among other things, we're talking about the loss of the jobs at the in Timaru and just the reasons behind that, as well as just be a bit of quick catch up on
the change to the fishing limits as well. The previous hour with Kent John's from Kent John's Health for the Health Hub about Mental Health Week and now you can catch those by the way, just go and look for the podcast, look for the Weekend Collective on our Heart radio or the news talk Cippy website. But right now it is time for smart Money and my guest is financial author of a truckload of books. Actually I think it's nineteen. I kept forgetting I filed at Underway of Lots.
It's like Nevaretti Marner when we ever on the panel. How many wards is it? Neva thirteen fourteen? How many books is it?
Martin Hawes It's twenty three?
Oh, twenty three?
Sorry, yeah, and the twenty fourth has gone into the publisher, so when that's published it will be twenty four.
Now I suggested a title for the last last time. I think I have no idea what it was. But have you got a working title for it yet?
Well?
Yeah, I think the final title is something like retirement. Ready. You know, the book is about disruption of my life, my own personal life, left Queenstown, moved to christ Church. And when you have a disruption like that, you should have a look at all the aspects of your finance, and at the same time, I wanted to make sure that I was ready for retirement. I don't necessarily think I'm going to retire anytime soon, but you're only as good as your last doctor's visit when you get to
a certain age. So I sort of thought I needed to be retirement ready. So it's the steps I took to be retirement ready and to get my finances in good order.
Has your perspective changed when you go and have it, I don't know if you do this sort of yearly or whatever check up with the doctors, Has your perspective changed on those visits, like here we go, yes, give me the bad news.
Yeah, it really has really over the last fifteen years. I used to get a blood test and sort of basically forget that I'd had to think and never never think about it again. Now I get a blood test and I'm waiting for the GP to ring and tell me the results of it. So I do. I do think quite differently about my health then I did, say a decade or so ago.
Yeah, that is interesting. I mentioned the change here. Is there anything particular that triggers it? Or is it just say you have one little incident you think, oh, my goodness, me, that's it.
No, I think it's it really comes from friends and family who I have seen get bad results. So I always thought my results wan didn't They always come back and as usual they say you're perfect. But there's no reason that my blood tests would come back perfect. You know, I'm of an age now where imperfections are arising, and I guess I've just seen so much of of bad test result, bad medical test results, and yeah, you know, one day that'll be me.
It's funny. It's a I mean the philosophical point of view. I was chatting to a friend, you know, about the bereavement and things like that, and it's like like there's a big, long queue and when you're young and healthy, you know, the queue for the you know, for the wrapping things up, it's a long one. And it feels there is a slight change when your parents die, and so when my parents start, it's almost like, oh, right, I've just moved to the front of the Q sort
of thing. I don't know what that means anyway. Look, we're not going to focus much more on this, but it's interesting because I mean, actually you're because your books, you sort of you help people out with the titles of your books, because they're generally fairly literal, aren't they. You focus on what's the messages, and here we go, it's retirement ready.
Yes, yes, that's right, yeah, yep. And it needs to be that. It needs to say what the book is about. You know, that's probably marketing one on one, I should think.
I guess, so, yeah, well, actually, because what we want I wanted to talk about the for this hour to kick it off, is reverse mortgages. I well, there's a story about it where the Retirement Commissioner commission should I say, has said some pensioners. It's talked about how much you can boost your income by up to fifty percent. I'm thinking that's probably looking at the lower end of the scale in terms of boosting a low level of income.
And every time I see the notion of reverse mortgages, I've always loathed the idea because it seems like one of those things where you get to borrow a little bit against the equity of your home, and over the course of time while you're living on that, the bank just gradually eats into the rest of it. And I sort of think there's got to be a better way
of funding your retirement. Of course there are better ways, but I mean they've got a better, be better late resort because it seems like that is that is an option of late late or last resort, isn't it?
Yes, yes, it is in the this is it's really it's really a thing for people who are asset rich and cash poor. And people wins about that, but it's actually a choice because if you are, if you own a house and not a lot else, you can do something about that. You can downsize the house, or you can go into some form of home equity release of wiser and now you'll be pleased to hear two forms.
There are other reverse mortgages, which is what you were talking about, But there is now a new one called wait trot home reversions not not a terribly sexy sort of name. Now a full disclosure.
Home what home?
What home? Home home reversion?
A home reversion.
Yeah. Now, I'm a director and a small shareholder of the company that has launched this new form of home equity release. Okay, and it's not borrowing, but instead it's selling. Over a ten year period, it's selling a small amount of the house each year to make up over ten years?
Are you selling thirty five percent of your house? So if you started at an age seventy, each year you would sell three point five percent of your house and you would get an amount of money for that, and that would effectively provide an income for you for a decade.
So from perhaps age if you entered into this at age seventy two, that would run till age eighty two and then the income would stop and lifetime the company of which I'm a director and the shareholder would own thirty five percent of your house.
Actually that who thought of that idea? Because common I'm happy to dig into it as well. I know you've and you've declared your interest in it. Is it it's something you borrow from overseas?
Is it?
Or?
Yeah? Yeah, very common in France and other parts of Europe and a few other places.
And the.
The good thing about this is that there's a little bit more certainty because the problem with a reverse mortgage is that the interest rate a is quite high. I think the current one for Heartland's reverse mortgage is ten point ten point five. But also it varies over time, so you can't calculate exactly what the cost of this is going to be over let's say the next twenty years. The one the home reversion one that lifetime income has
done only last for ten years. But it's working on the assumption, and the assumption is supported by a lot of studies and so forth, the assumption that as you move into your eighties, your expenditure and retirement will naturally fall. You will do less shopping, you'll do less or maybe even no travel, and so forth, And all the studies show that there is a retirement spending is a V shape that it gradually drops off as you move through retirement.
It might go up a little bit, but again right at the end of retirement, as you move into care or something like that, but generally there's a fall and expenditure in retirement.
How so that's because I actually was about to the other and I guess the broad heading. So I keep on chopping myself off because my as moving too quickly. But it's about late late retirement planning or last minute retirement sort of strategies. Because what's it called again, the
reverse mortgage. I must say I don't like it, And it wasn't because I didn't like it when my parents alive, because I didn't think that would work, not that they ended up doing that, but I don't like it either from the sake of the fact that would eat into my equity is for what I could pass onto my kids.
But the other thing is I just I've always thought that just putting your one to the side, just for a second, that one of the key if you are I guess it depends on where you're living and what the market is you're living in and what your options are. But if you have, over the course of your life ended up in a reasonably pleasant home, that's got quite
a value to it. I would have thought that the first thing you'd do is, well, okay, my house is worth a million and a half, maybe I can find something for half a million bingo downsize.
Yeah. The problem with that is it it's to take get any capital out of downsizing unless you move locality, and generally that's from a city. So a Queenstown person moving to christ Church is probably going to free up a capital. They'll buy much cheaper house than christ Us than they ever would in Queenstown. Or if you were living in Auckland and you move to I don't know, somewhere in the central North Island or somewhere or maybe
up in Northland again, you probably free up capital. Now that means you're moving away from family, and you're moving away from friends, and you're moving away from your connections and all those kinds of things. If you simply say, am going to literally downsize the house and have a smaller house, that is, go from say three bedrooms to two bedrooms, or a house to stay in, yes, or something like that, you might free up a bit a
house to an apartment. But if you're just going, you know, standalone house of three bedrooms to a standalone house of two bedrooms and the same locality, you're probably, after costs, not going to free up an awful lot of capital. So a lot of downsizing does involve people moving. I think three or four years ago when my daughter was looking at at properties and I was doing a bit of looking at properties with her, there was something like a third of people who were buying properties in christ
Church were from out of town. Some would be speculators and investors, but quite a lot of them were people who were downsizing to christ Church. And that means they're leaving behind a network and friends and family and so forth. So downsizing is not all that it's cracked up to be. I used to think it was a sort of a silver ballot, but you know, when I look at it in reality and I look at the way people go about it, I don't think it's a silver ballet at all.
I guess if you're living in Victoria, Aven and you decide to move maybe just to three or four streets, the probably downsize quite successfully given the projects in that market.
But I'm sure, I'm sure you're right.
You clarify that when you moved from Queenstown to christ Church. Probably wasn't really with the idea of releasing equity, I'm guessing as a former as financial advisor and currently financial author.
No, no, it wasn't. It wasn't about freeing up a capital at all. It was about family and moving back to being by the sea, which I know. I was in the mountains and Queens and I love the mountains, but I love the sea as well. So there were quite a lot of polls to christ Church and I never wanted to leave it in the first place. So here I am.
But what a good solid cantabrin you are, Martin. We want to take your cause on this a late retirement and look, I think, well, look I've been I'm not as on money, but I've been hosting a money are enough to get the sense there are a lot of people who are heading towards the retirement who feel that they are not prepared for it. So what is on your mind when it comes to getting ready for retirement?
Would you consider a reverse mortgage or home reversion which is something that Martin has just shared with us, which we're going to dig into a little bit more after this R E one hundred and eighty ten eighty text nine two. It's coming up to twenty one past five News Talk s B and welcome back. This is the weekend collective. I'mton Beverage. This is smart Money. My guest is Martin Haw's financial author twenty three books, soon to be twenty four, and we're talking about late retirement options,
in particular the reverse mortgage. But as Martin has mentioned, the idea of what's called home reversion, and he's declared he's actually a director and a small shareholder and a company that is starting this new idea, and it basically, instead of borrowing money where the bank gradually eats into your equity, but you borrow a chunk of money here, you actually sell a part of your house over a ten year period. I've got to be nice and circumspect about this, because when I hear a new idea, I
was get excited about it. But Martin it, I must say, I'm on the face of it, it sounds like a bloody good idea.
Yeah you are. Of course, they're still giving up equity, so yeah, yes, but you're getting.
Paid for it's not getting eaten into. And if you still own seventy percent of the house, if your house goes up in value, it's still worth seventy percent of your house, I mean, and I guess so will your home be with the reverse mortgages.
You can't. You can't have your cake and eat it too. What you trading. What you're doing is trading thirty five percent of your house or lifestyle.
Yeah, which I'd.
Argue isn't valuable. And you know, a lot of a lot of people they're getting their ends super and that might be thirty five forty thousand dollars a year, depending on texts and so forth, and they are almost that, you know, it depends on the size of the house and so forth. The value of the house, but they can almost double that and that gives a significantly better lifestyle.
Actually, just before we go, we actually I'm going to let some of our callers ask questions because there's a lot of texts and we're going to have callers who want to find out a bit more about this. But I just wanted to touch on one little thing to get your thoughts about it. It's more just a decision around retirement that you were talking about. How as you get older, there becomes an age where you do just spend less because you're doing less and you're less active,
et cetera. And I my rule of thumb would be that if I am still living the sort of life where I'm going to be requiring the same sort of spending as pre sixty five, I would imagine if I still felt that I was going to be that busy and spending that much, I probably still want to be kept working.
To be honest, Yeah, yeah, that's right. What is it? Forty eight percent of people aged sixty five to seventy are still working. And I think you're right. I think if you're active and able to work, then you could very well choose to there's a small ish number of wealthy people who can afford to fund a very good lifestyle, A lot of them. You know, I had a lot of those kind of kinds of people as clients when
they used to be an advisor. But yeah, you know I have I think if this new book has a I think the chap brom work is called something like in praise of work, because work does have a fair bit going for it, not not just the money, but social engagement and so forth.
Social engagement and just keeping active and all that sort of thing, so long as the work itself isn't destroying you if you're doing obviously, you don't want to be working in a coal mine.
Or up on the roof banging on. That's the one, yeah, n Or something like something like you need to be in a job like you and me, we're sitting on our.
Butts talking good on it. Well I am you? Hey, thanks? Right, let's take some calls. Paul, Hello, how's it going.
I just want to ask him a a question. Is it like reverse morgage? You know, like someone bars the money over ten years and five years they have to sell their house to go into a rest home. You know, does have money? It does whatever's owe on the house they take, do they take it out or can they transfer transferred onto the other property day buy because the only thing I don't like about reverse mortgage is is so many people that do it and they go into
wrist home. They can't afford to buy a house because the money's gone.
Yes, probably there'd be certainly no guarantee of that, and it would be unlikely because you know, going into a rest home we being lifetime and come. And I don't think the reverse mortgage people either, would you know, are able to lend or buy a little bit of a of a rest time So you'd have to use the sixteen in our case, you'd have to use whatever was left of your equity to buy the rest time? You not And you might do that, but you might not either.
Yeah, can you ever do a thing like finances would beat? You know, we'd invest money be beat because iron about iron te teen ten thousand dollars before to six weeks my rentals and just finding somewhere to env invest rest of money.
I don't do that personally, and I didn't even do that when I was a financial advisor. All I did was give advice to people and help them find somebody who would be the money for them, of which all, there are plenty of people around who will do that for you, and do it quite compotantly.
It doesn't sound like I've put he's earning that money in that period of time, and he needs to worry about the reverse mortgage, that's for sure. But I'm curious questions. Yeah, thanks, thanks Paul. Let's take another question or call Bruce solo game all right?
All right, hi.
Martin.
Hey, our situation is that we have a freehold house and also a freehold commercial building. Now, we took early retirement a few years ago and we're sort of starting run out of a bit of bread. Now, what do one knows if we would have put a reverse mortgage or a home equity release mortgage on our house and we sold their commercial property sat in five years time? Are we able to pay that mortgage off without any penalties?
Oh?
What a good question. I'm not sure. I'm not sure the reverse mortgage would you whether you would have that right, but you could probably negotiate that. I don't think you'd be able to do it with lifetime with the with the home reversion one because you've actually sold say thirty five percent of the house. You could argue, can we just buy it back? Well, maybe on a one off kind of deal, but you'd be an outlier. I'd have
to say brucently. You know, there wouldn't be many people in that sort of situation.
Yeah, because the problem we have is that no bank will need ue any money because we don't really have an income.
Yes, yeah, and what about the commercial property that should be generating an income.
Yeah, but that gives us enough to live on, I see, don't money to travel or anything.
Yeah. Yeah.
So that's why I sort of thought, until we get the pension and they maybe say for another two or three years, if we had a reverse like a Heartland Bent type mortgage, I think that once we sell the commercial property to realize some cash that I was hoping, we'd be able to pay that often and get back to being free.
It would be worth going, and it'd be worth going and talking to them. I mean, I know some of the people there, they're very good people. They would you know, they may not be able to do that. Their rules and so forth in the way they've got their book structured may not allow them. But I think they'd look at it for you maybe.
Actually just quickly proceeds that once you do start getting the pension, is that your retirement, is that your travel money?
Is it?
Well, it will be how it would be helpful, but it certainly wouldn't let us do any big trips for say to a few years till we built up a bit of a bit of cash behind us again. But yeah, unless there's another suggestion that Martin can make that we could do well.
My suggestion actually would be to sell the commercial property now and have that either invest the money yourself or more likely have somebody invest it for you, and then have a draw down rate, so a set amount that you're going to take each month, which means that you will run the capital down and be able to spend it on a monthly basis.
You mean spend the kids inheritance.
Now, that's the one.
Yep, absolutely that it.
Has occurred to me and certainly is probably one of the better options. I just thought I'd run a past you see.
Yeah, well no, no, I wouldn't ask the they might say no, I'd have a chance a chat to Heartland. SBS Bank is the other one who operates who offers these things as well, So have a chat to s BS s b S bank.
Okay, thank you very much for your health.
Thanks okay, not specific financial advice, by the way, just have a yat to someone. So the first Morge just remind me so that basically you borrow money against your house and they give you a mortgage and they don't expect you and so instead of repayments, it just starts to clock up against your equities. So you can still sell your house, but then you'll have to repay whatever's owing.
Yes, including the interest, so the interest compounds. Interests have not paid it. Just the amount of the loan grows over time, and you'd hope that the house would grow on value as well, or the kids would hope that the house would grow in value as well, and it may do, but of course it hasn't. In the last couple of years, they've dropped them value on the whole.
So what's the advantage of the home reversion that you're outlying so you're selling Just to sum it up again, you're selling three and a half percent of the house per year for ten years. What's the advantage over the mortgage you.
This probably there's lots of properties in this, but it's probably more certain than a reverse mortgage, because with a reverse mortgage you're subject to the vagaries of interest rate ups and interest rate downs. Now, a reverse mortgages interest rate is always higher than the common garden home loan interest rate, and that's because they're not getting the cash
now that wing to wait to get it. But if interest rates went through the roofs, that would that would mean that the loan would compound even faster and become even greater, you know. So there's a bit more uncertainty there, whereas with the with the home reversion, you know that you're going to end up having sold thirty five percent of the house, and you know therefore that you have
sixty five percent of the house's equity. You don't know what that's going to be worse because you don't don't know what house prices are going to do in the meantime.
So you set the price at that period, you sell the first three and a half percent. I've got a house worth a million bucks, then you are getting three and a half percent of.
A million bucks less fees, less fees, and you get that as an income. You don't get it as a lump sum.
So if your house is doubled in value. In ten years, you're still selling three and a half for the for the old price.
No selling, No, each each year the house is valued.
Oh really, Oh okay, Well that's that's that's that was That's caught me by surprise because I thought that one of the values was that you guys were buying a steak. But of course the three and a half percent that the home Reversion company has bought that is worth more because your own a part of the house. And that's okay. So you're not locking people in it. You're not locking people in it.
Today's prices no so, and tim don't forget, and people, especially my age, probably your age as well, think that home prices are a one way street as they always go up. In the last two or three years, they've actually gone down quite significantly, not in all markets, spun in some markets.
Yeah, that's worth remembering. Right, Let's take some more calls on this and I'll go through some of that. There's some good questions. Oh, by the way, I'm just going to deal with this one before we go to Michael. It's usually the aggressive questions come with a bit of an insult, says how thick are you all these mortgage schemes is to benefit the schemers. Well, everyone's in business, aren't they, Martin. I mean that's the point. I mean, you're not doing a lot of charity.
No lifetime incomers, trying to make a proper you did, right, I'd be unapologetic about that. You know, you obviously have to and looking at these you have to look at the fees, so you know.
No, you don't have to respond to that. I just want to. I thought i'd just read that one. Of course, everyone's in business. I mean I turn up work and I enjoy doing it, but I do like to get paid for it too. Okay, right, let's care on where we're up to Michael.
Hello, Oh, good afternoon to Mike. I didn't hear the beginning of Martin's interview, et cetera. So this might be a stupid question. But who do you sell that thirty five percent too? Is it relatives? Is it anybody?
Is it to a company?
And it's markin carry on? Yes, yes to lifetime income. You sell it to that. Now we may package that fact. We will package it up and sell it on. Sell that and all the other loans that we are all the other bits of equity we've got to investors who want to invest in residential property. But you're selling in the first and instance, you're selling that little bit of equity repeatedly for a decade. You're selling it to lifetime income to the company.
Yes, but my question, yep, my question is I was just thinking that if that was so, who is it the company that owns it, or does somebody else buy into my house or your house?
We may we will buy your we will buy thirty five percent.
Yep.
We we may package that up and we may sell that. In fact, we will sell it on to other investors, because we don't we don't want to.
So what what I think, what what Michael means is whose interest is lodged on the title as A as A.
Because because my question from then on is I used to own an ex financial advisor and in minor way, but there are problems, say the next people have a marriage breakup, or there somebody does something you know, or they're just good bananas and ruin your house, et ceter.
Okay, so it's about the it's about who Obviously you would organize a right to occupy I'm guessing, but yeah, who's actually on the title.
You can answer that now, mat Yeah, yeah, both both parties, both Lifetime and yourself would be on the title and the percentages of ownership. And you have the right to stay in the house, providing you you follow all the rules and look after it and such like you have to. You have the right to stay in the house until it until it's sold.
Yeah. So if you sell the interest on Martin, does someone else end up lodged in the title as well?
Yeah? Right, yes, that's the problem.
Well, it depends on what under what terms. They can't just yeah, I mean I guess there would be a caveat on on your on life, on your ownership, wouldn't it Martin in your company.
It's a very complicated legal agreement, and I'm not yeah it will be, Yeah, it will be. This is something and the same with reverse mortgage. You have to get good legal advice on.
When you've got a reverse mortgage, you still own the whole house.
Yes, that's right, all be.
A part of the screen. Whereas this other way. Just for sake of argument, say there is a marriage break up and they fight about that thirty five percent of your house, I don't you know that's that's a rare trauma for the I'm the older, you get trauma's get magnified.
You're assuming that someone else's problems are going to mean that they can argue whether to sell your house. I'm guessing the legal agreement is that only you can sell your house.
I've sold it. I've sold it to these people. They've given somebody else, another couple and they're happy ever after.
No, they're not might divorce, yeah, but they don't have the right to sell your house. That will be part of the agreement. I'm thinking is that you're not suddenly buying into a relationship, would be my guess. Of course, you're not going to do a deal with yourself just to someone haphazardly or three. I'm probably answering your questions for you, but I think that Michael was probably at one on one equals ten.
Yes. Yeah, the original homeowner who sold down thirty five percent of their home, they can stay in the house for as long as they like. When they sell up for whatever reason, whether it's a marriage breakup or whether they downsize or whether they go into a rest home. When they sell up, the proceeds will be after costs will be divided at whatever percentage. It is probably sixty five to thirty.
Five because I think that what Michael was assuming was what if another couple ended up owning, you know, the homeowner. Yeah, and it's not subject to that sort of gaos. Yeah, actually just out of so, how do you once somebody with a home reversion? Actually, I tell you what. Sorry, I'm late with a break. We'll come back. I've got a good question for in more calls to get onto, so we'll be back in just the tickets eighteen minutes to six?
Do you nay go?
Did machine us?
And we're not.
Welcome back to the show. This is Smart Money. I'm Tin Beverage. My guest is Martin Haugh's author of twenty three going on twenty four financial books on financial advice, and we're talking about late minute, last minute sort of retirement plans. Quick question Martin on the home home reversion idea where people sell three and a half percent for ten years of their property. Is there an age qualification for this?
Yes, yeah, there is. You've got to be at least seventy ah and there will be an upper age limit. I think as well, but I can't recall what that is off off hand.
Because I could imagine the young people go and tell you what, I'm going to buy a house and these guys are going to own thirty five percent. That's great. I don't have to pay seventy percent of the house or whatever.
You see, it's a ten year deal. Also, so yes, we're assuming that people have about age seventy peak expenditure. That's when they want to go to you know, through their seventies that they're going to spend their money. I'm in my seventies. I'm going to Europe to go rock climbing every year, and I'm doing this and I'm doing that. And so it's that when it's that time that expenditure is high, and that's when people need the extra income.
Do you what about the home reversion company? Do they given that rates are a property tax, do they who pays the rates and insurance the occupy pays the costs and looks after the property. Yep? Good only Okay, now right, let's that's as you say, if you're interested in this sort of thing, you need to get legal advice. And Martin certainly not yes advocation for his own companies, just mentioning that this is another alternative. Let's take another call a Richard.
Hello, Hi there, I'm seventy six years old, and I have a house or properly, it's worth about one point one million, but it has a four hundred and fifty thousand dollars mortgage on it due to a marital chef settlement. And I've also got about four hundred dollars in Kiwi savor, which is mine. So the questions I have are, does it is the Is there a requirement of your scheme that that the mortgages is mortgage free?
Yes? Yes, the property would need to be mortgage free, so you'd need to find a way of paying that in full and have the I don't have no mortgage on the title, right.
So it wouldn't.
It's a situation where if the house is sold, you'd get thirty five percent. The bank would take fair amount. I mean, I'm you know, I'm I don't have any children or anything like that, so and you know I have the Oscar Wild philosophy, it's better to die penless and knowing money.
To you, Taylor, Yeah no, you'd have to have to clear the clear them more good Richard.
Yeah, okay, So let me work through some of the text questions here, somebody's just saying, also, it's it's always worth remembering the power of compound interest, just as a general lesson in life. Einstein said compound interest was the eighth wonder of the world. And then think of an interest rate of ten percent working against you when it comes to the reverse mortgages. Yeah, I must say reverse mortgages to me sort of the devil. But personal opinion
only hello again, says this text. It must have sent an earlier one. Can I sell the house anytime I want? And am I?
Yes?
Okay, you can? Yes? And does the thirty five percent owner just get whatever the market value is of its shares obviously less? Yes, whatever, phase, etcetera. No additional pendally.
Yep, So we take we take the ownership rusk.
Are you tied into selling three and a half percent ten times?
No, I'm pretty sure you could stop that, Okay, if you want to know, I've had the income. I don't need income now, I'm I'm beyond travel. I'm not spending as much so I thought I would. I don't you know. I'm pretty sure you can stop.
But because death would be an out, I would that would.
Wrap it up most most certainly is and moving out for whatever reason.
Yeah, I mean, certainly speaking, death is generally or release for all your obligations.
That's right.
Put a black human there anyway. Yes, we'll be back in just to take News Talks B eight hundred eighty, ten eighty. We have time to squeeze another call while I've looked at some more of the correspondents. Ten to six. Yes, News Talk said, be with Martin Hawser. Martin, We're going to do some quick Let's do some quick fire texts on this whole thing and see what we can get through in the next three minutes. Martin, which of your books would you recommend for someone getting close to retirement?
Thanks Cracking Open the Net. It's my last book. Came out last year or the year before.
Yep, excellent Martin. Have you done any comparisons between going to a retirement village and downsizing for the older person regarding freeing up cash.
No, I haven't. But it depends what you're going to do with the cash when you've downsize, assuming you're going to spend that, I doubt that there would be a lot or not, to be honest, now, it depends also on how long you stay in the retirement village, because if you stay there, like my mother did the twenty odd years, her retirement unit was worth an awful lot less than any unit that she could buy in the market twenty years later.
Okay, right, regarding the reversion home reversion, if you decide to travel and put a tenant in your property, is that complicate things? That's from Sue.
Again, looks something I'm really sorry.
So give the lifetime Yeah, actually we'll give you might as well give the websites so people go and check out the information. Where would they go?
I think it's just lifetime and lifetime income dot co dot NZ.
Yeah, and probably if you googled home reversion that may come up with a New Zealand as well. Okay, that's another question. Okay, somebody's just as what the contactors? So we've done that one. I like the concept who descermines the value of the property as you go in three and a half.
There is a process for that, which is obviously quite robust. You have to in launching any any product like this, financial product like this, it has to be consumer friendly. You can't have there the disadvantage the consumers. So the valuers will have to be involved, but there is also a process of the disagreement on valuation.
Yeah, okay, hey, look, I think that it's been a great conversation because I think, for one, there's an alternative that's been presented, because I think a lot of people think, oh God, if the only thing I've got left is a reverse mortgage. But there are other options. There's the
downsizing option, which you can always look into. You can get legal advice on the home reversion, or you can decide you're going to go with the But at least there are options, so we can discuss other options another time, can't we, Martin? Yes, indeed, yes, okay, excellent, Hey Martin, and mountain climbing in Europe and you're doing well?
Do you go? Still?
You do use rapes, don't you? You're not free solo?
Oh yeah, no, no, I'm not free soloing. I want to live a lot longer yet that.
Would be what's called a late life crisis free solo up El Capitan. You've seen that.
I have absolutely makes the hears on the back.
Anyway, Hey, thanks so much, And that's Martin Hawes.
There we go.
That rout's smart money. Thank you mate, well, thanks my producer Tyre Robert's great job.
Tyra.
We'll look forward to I'm back on at midday tomorrow and for the rest of the week as well, so we'll catch you basically every afternoon for the next seven days. We'll catch you soon, have a great evening.
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