reaching the 50th years of age with a FI granted by the income of 3 homes rented, should happen that the rent is not enough or things/life plans change and cash is needed, it seems that there are 2 solutions to convert in cash/income properties without selling them:
“Umkehrhyphothek” (Reverse mortgage): Practically you get a loan on your home, but the interests are taken out in advance, therefore no check of your income or pension happen. Of course the home must be without/almost without any mortgage. For example you get CHF 500’000 loan for your home worth 1 million. From this amount the bank detracts the full interests over 10 years (if interest rates are at 2%, 2% x 500000 x 10 = CHF 100000) and you get CHF 400’000 payout.
“Leibrente” (life annuity): Practically you sell your home with the right to leave there for the rest of your life.
Both models quite common in USA and UK, but quite rare in Switzerland.
Has anyone of you concrete experiences with some of these models?
They seems to be very inconvenient with tons of costs, almost no worth for a real “mustachian”, but anyway to hear some concrete experience would be nice.