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How does Double Rental – Equity release product affect the UAE market?

  • August, 30, 2023

Our Product ‘Double Rental – Equity Release’ not only financially supports property owners and corporates but also boosts different markets within the UAE. The impact of ‘Double rental – Equity release’ on the overall UAE market is analyzed from several perspectives:

Real Estate Market

-        Increased Demand: This product can potentially increase demand for properties, as it allows older homeowners to access funds without selling their homes. This could lead to a higher level of demand in certain regions, particularly in areas with a higher concentration of retirees.

-        Supply and Downsizing: On the other hand, some individuals might choose to downsize their homes after accessing equity release, which could increase the supply of smaller properties in the market.

Economic Impact

-        Increased Consumer Spending: This product can provide older homeowners with additional funds to supplement their retirement income. This increased spending can have a positive impact on the economy, as it boosts consumer spending and supports various industries.

-        Reduced Inheritance: By using equity release, homeowners essentially decrease the value of their estate, which may lead to reduced inheritance for their beneficiaries. This could potentially impact wealth transfer and future spending patterns of beneficiaries.

Financial Services Industry

-        Growth of Equity Release Providers: As equity release is becoming more popular, there might be a rise in specialized financial institutions or lenders offering these products. This growth could increase competition within the financial services sector and create new business opportunities.

Government and Regulation

-        Social and Welfare Implications: The increasing use of equity release may have implications for government welfare programs and social care, as individuals may have more financial resources available to them during retirement.

-        Regulatory Considerations: Governments may need to monitor and regulate the equity release market to protect consumers from potential risks and ensure transparency and fairness in the industry.

It's essential to note that the impact of our product ‘double rental - equity release’ on the overall market can vary depending on the prevalence and popularity of these schemes, economic conditions, and the demographic characteristics of the population. While this product can offer financial flexibility to some homeowners, it is crucial for individuals considering such schemes to seek professional financial advice and carefully evaluate the potential long-term consequences for themselves and their beneficiaries which will be evaluated by the finance professionals within Money Protects.

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