Double Rental/Equity Release
This financial product enables you to access your home’s equity (the cash tied up). It enables you to have a second stream of income if you have rented your home. Currently, properties are booming in UAE. It is a favorable time for property owners to pounce on the opportunity to reinvest their home equity and earn a guaranteed second income. The inflation in the market has caused a rise in the price of necessities specifically affecting the old, retired, and jobless population due to their lack of income. This product can help the older population to get a fixed income for the rest of their life.
- Mortgage-free home/Cash purchase of the home
- Eligible holder must possess ownership rights of the property
- Double stream of income – rental & equity re-invested income
What is Equity Release?
Equity release refers to a financial product letting you access the equity (cash) tied up in your home if you are older, jobless, retired, or need a second stream of income with a well-protected cover of your home.
Equity release products are sorely needed in an aging population and expats in GCC. Particularly when we see Dubai and Abu Dhabi Markets a house is a great sign of relief once paid off and related visa benefits achieved. Due to uncertainty in the linked job market, the full payment on 20-25 years of mortgage is a long story and the biggest threat to the largest expat community is to survive the interim bad period of financial difficulty to sustain with the installment’s payments, at least till the time a new job is obtained. Though UAE nationals also have cashflow challenges during the mortgage tenure, starting from children’s annual fees, marriages, and other social objectives where higher cash flow is required for a certain time to cope with specific problems.
Equity Release transforms Immovable Fixed Assets in owner-occupied dwellings into liquid assets for the second stream of income. Thus, it enables a homeowner to access the wealth accumulated in the form of his or her home, while being able to continue to live in it. An illiquid asset becomes a source of liquidity, mainly for the new stream of income purposes.
Who needs the most?
Suitable for retired people who own fully paid-up properties in the UAE.
Increased ability of income sources for property owners.
Property owners are less impacted by the increase in inflation due to this product.
Aims to reduce the financial dependencies of the retired population on the working population.
- For SMEs and retirees who are facing financial crisis
Double Rental/Equity release will be impactful because we protect.
Aging population or retirees over 60 years of age.
Distress Assets and cashflows
Corporates facing default risk using bail-out restructuring technique.