Article in December 2004, Lifestyle Quarterly Grey Power. From Jo Howard, Secretary, Grey Power Motueka.

Much publicity is being given to home "equity" schemes whereby cash can be advanced to retirees against the value of their home but the big disadvantage appears to be the rates charged and the depreciation involved.

I have been asked to share with you my experience of improving my cash flow situation to supplement my superannuation without jeopardising my home environment.

As a 71 year old widow, it did not seem sensible to have reached. the stage of being "cash strapped" when it came to "extras" like family birthdays etc. with my so called old age "nest egg" tied up in, bricks and mortar.

I was most reluctant to leave my comfortable, convenient home and as the result of a casual conversation with a lawyer friend I have benefited from a very satisfactory solution to the problem.

I have sold my property to a landlady incorporating a "tenure on the title" specifying the number of years I wish to rent the property.

An "agreement" with a new owner goes out the window if a re-sale occurs but a "tenure" is a condition of sale and only expires at the end of the specified period thus giving you tenancy security.

An investment owner proved easy to find and they of course appreciate a caring tenant who in turn appreciates continuing to live in their familiar home.

I find the commercial rent is largely offset when deducting previous outlay of a small mortgage, council rates and maintenance and adding the interest on the invested capital from the house sale.

Certainly, a small erosion of my capital occurs annually but I can indulge in a trip or whatever if I wish - the choice of money in the bank or living it up is mine!! It could be for you too!!