Generational Living – Part 2
Wealth Creation through Opportunity. I see an era where the average homeowner will become (through necessity) more educated about how to maximise the value of their existing dwelling and land.
Consultancies are already growing up around this issue, which are driven by the need to maximise value of the traditional home.
Traditionally the family home stays in the parent’s name until they enter a retirement home where it is used as equity to fund retirement, or they die and then it is left in the will to the children who sell it and share the spoils.
These traditional ways are changing in many ways.
Retirement Funding – The traditional family home should be a source of retirement funding through the progressive development of land over time, with additional density. Unlocking value all whilst remaining in the family home for longer.
Development Profit – Homeowners will become more educated in developing their own land. There are significant economies of scale for people who have owned their home for some time. By understanding how to do this they will reap greater rewards, rather than just selling to a developer.
Affordability – The cost of living is increasing exponentially every year. As a homeowner with a mortgage, adding a “granny flat” or some additional density can provide additional rental income from the property that can assist with mortgage payments, yet without compromising privacy and independence.
Create Savings - Adult children are staying at home longer these days and a secondary dwelling can provide them with a sense of independence and allows them to save money towards their goals much quicker than paying rent in the normal marketplace.
Investment Return – Additional density can add value to the traditional property and create extra income that can be increased in stages over time.
Value Increase – And through this progressive development the extra income source to your property increases its valuation.
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