- Rising house prices have made thousands of people millionaires over recent years – at least on paper.
Half of Auckland’s houses are now worth at least seven figures, while two Wellington and two Christchurch suburbs also have average values of more than $1 million.
But for homeowners approaching retirement, having a pricey house is not much consolation if you do not have money in the bank.
More than half of all people over 65 earn less than $25,000 a year. Many rely on the pension alone.
READ MORE:
* More Kiwis need to tap into their house’s equity to fund retirement
* How to give the kids a leg up onto the property ladder
adsense
123RF
With no repayments to offset compounding interest, reverse mortgages can quickly eat away the equity in a house.
READ MORE VIA STUFF