Buy Home for your Retirement
Club the Housing loan into Retirement plan
Buying a home is a simple and easy way to retire. You do not need to save separately for your retirement.
There are lots of retirement plans and policies available for private sector employees. Out of the salary some money has to be allotted for retirement if you have enrolled in any retirement scheme.
Now you do not need to look into such policies or worrying about retirement.
Buy a home now. Pay its EMI. Live in your home without house owner harassment or often need to change your whereabouts. No need to pay sky scrapping rent. Let the EMI be your rent. You live in your own home.
When you become old, you would have completed your housing loan EMI and the house will be yours completely. At the same time you would not have any money or bank balance when you stop earning due to aging.
Now club the Housing loan into Retirement plan. If you already owning the house club the house into your retirement.
The only value you possess is your home. Do not sell it to manage your retirement expenses.
Do not pledge your home for loan against property where you have to pay your EMI monthly for the principal amount you get.
Just Reverse Mortgage your home.
Reverse Mortgage loan is given against the equity of your home. You do not need to repay the principal amount, which means no EMI. You do not need move out your house. Even though it is mortgaged, it is your home. You can live in your home as long as you like or till you die. The creditor or bank will issue the loan amount in periods for example monthly.
In reverse mortgage loan, it is like you are selling your home, get the cash periodically, but you do not need to vacate from your home till you are alive. You are allowed to live in your 'sold' home provided you enjoy the privilege of a house owner.
You get your retirement security from your home through Reverse Mortgage Loan.
Once you are dead, the creditor or bank will 'realise' the loan amount from your house.
There is a philosophical touch in this Buy a Home and Reverse Mortgage It.
When Alexander The Great dieing, he said 'let my hands be visible to the public from my coffin. So people could know that I do not carry anything with me'.
In the same way, we possess something for the comfort of our living. We use and enjoy it till we are alive. When we die we give up our possessions. We die with the empty hand. We born empty and die empty. We are not bounded to any property.
If you are buying a house, do not worry about your retirement or do not save for your retirement. Let the EMI of housing loan be your retirement saving.
If you have a house, you do not need to depend on Government or no need to blame government for your retirement. Your house covers your retirement.