Episode description
Question of the day:
"We are fortunate enough to own our own home and a small holiday home, both mortgage-free. Estimated value $2 million and $600,000. This is taken from the lowest property value range.
My partner just turned 65 and is on NZ Super. I am 63, have terminal cancer and I’m on Supported Living.
Our problem is we have eaten through the savings over the last few years due to reduced income.
I would love to keep the holiday home a little longer to build memories with my daughter and grandchildren. Also for my own mental health. Even better, leave them the property to continue building memories where we all love spending time together.
Is it feasible or even possible to get an interest-only loan up to $100,000 to enable this to happen for the next five years, rather than give up on the dream now?
The loan would be used for essential repairs and interest payments, outside what we can meet on reduced income. I would prefer to progressively draw down the loan rather than get it all upfront, to keep interest cost down. And payable early if circumstances changed.
We do have life insurance if the inevitable occurred within the next five years. It’s lower than it was as we made an earlier terminal illness claim on mine and used it to repay our mortgage in 2016. Outliving your diagnosis has a downside financially.
As a general rule we live frugally. That would not change if we proceed. This would give me time to come to terms with having to sell something I worked very hard to achieve, and reduce the feeling it was all for nothing.
Is this foolhardy or worth consideration?"
Source: https://maryholm.com/nz-herald-12-march-2022/
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