Living in landed property - and poor

Helping the wrong set of people.

One important point about elders is the difficulty for them to adapt to new environment after relocate (or downgrade). I do experience it with my mum when she is still around. It is not due to willingness, but a natural limitation due to age

The best solution is to reverse-mortgage the property for daily allowances. It will solve the money issue, while keeping the elders in place.

The childless couple in their 70s who own landed property do not need "financial assistance" and handouts. What they need is help in cashflow.
Reverse mortgage, as described by yeokiwi, is a good idea.

Case 1) A childless couple in their 70s, wife had suffered a stroke and required expensive care.

Case 2) A sick elderly widow with a schizophrenic daughter.


I am glad the social workers and bureaucrats handling their cases have a more sympathetic ear and patience to support the above couples discover the solutions to their challenges on their own.

Have we not encountered cold, clinical, law by law bureaucrats ourselves? Quick to dispense solutions for us without listening to our story first?

Empathy and compassion.

And I'm only an agnostic...

Regardless whether or not they ever were taxpayers, it is shameful for these pte ppty owners to accept handouts. They are depriving others of these funds. I know of genuine cases where the recipients have no choice and NEED the money. These pte ppty owners have choices, they have options, just that they don't WANT to make these difficult choices.

(22-12-2012, 11:50 AM)CityFarmer Wrote: One important point about elders is the difficulty for them to adapt to new environment after relocate (or downgrade). I do experience it with my mum when she is still around. It is not due to willingness, but a natural limitation due to age

The best solution is to reverse-mortgage the property for daily allowances. It will solve the money issue, while keeping the elders in place.

Mortgage is a dirty word among the older generation.

Given the current property prices, would reverse mortgage be a good idea? This is because the valuation on the property would naturally be higher. If there is a correction and the valuation falls, the home owner would be in trouble?

(22-12-2012, 04:59 PM)LionFlyer Wrote:

(22-12-2012, 11:50 AM)CityFarmer Wrote: One important point about elders is the difficulty for them to adapt to new environment after relocate (or downgrade). I do experience it with my mum when she is still around. It is not due to willingness, but a natural limitation due to age

The best solution is to reverse-mortgage the property for daily allowances. It will solve the money issue, while keeping the elders in place.

Mortgage is a dirty word among the older generation.

Given the current property prices, would reverse mortgage be a good idea? This is because the valuation on the property would naturally be higher. If there is a correction and the valuation falls, the home owner would be in trouble?

Yes, i agree mortgage is a dirty word, but been old with no money is a much dirtier word to the old folks.

Reverse mortgage is a feasible solution for childless old folks. Reverse mortgage comes with 2 options IIRC, term-base and annuity-linked plans. So LionFlyer worry is less likely to happen if it is done right

I mentioned the problem with the reverse mortgage earlier. Generally I agree that we should develop the reverse mortgage market to solve the asset rich cash poor problem. The other problem is also that a 99 year property has a time limit before the property actually starts devaluing MATHEMATICALLY.

(22-12-2012, 01:21 AM)specuvestor Wrote: Housing is still the best generic indicator of a household's wealth. There were reverse mortgages before but were not well received and actually had a top-up provision when asset prices declined, which doesn't make sense when the owners are depending on the income for livelihood.

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(22-12-2012, 02:29 PM)Jared Seah Wrote: Case 1) A childless couple in their 70s, wife had suffered a stroke and required expensive care.

Case 2) A sick elderly widow with a schizophrenic daughter.


I am glad the social workers and bureaucrats handling their cases have a more sympathetic ear and patience to support the above couples discover the solutions to their challenges on their own.

Have we not encountered cold, clinical, law by law bureaucrats ourselves? Quick to dispense solutions for us without listening to our story first?

Empathy and compassion.

And I'm only an agnostic...

Both cases deserves our empathy, irregardless of wealth. But the parallel ends when capacity is added into the picture. There are many poor families burdened with no capacity to dig themselves out of the hole. Those who has the capacity but refuse to help themselves has to account for their action / inaction as well.

On a side note, many couples will be childless going forward due to their past decisions. People have to be responsible for their own decisions. As a society we have to be more responsive to those that didn't had a choice or the luxury to make a decision for eg infertility in this case.

publish their situation in the media, i'm sure there''ll be plenty of people volunteering to be their god "sons/daughter"

If the property has little lease left, say 20 years. Are they able to get sufficient value out from it ?