Home reversion is when you sell a share of the future value of your home whilst still living there. You receive a lump sum payment and continue to own the remaining share of your home equity.
Pros
You are able to continue living in your home after you sell the share
You can conduct renovations or maintenance that your home may need with the lump sum payment you receive
You can use the lump sum for any urgent needs such as medical treatments
The lump sum could help you secure accommodation till your home sells
Cons
You will own the lower share of the equity in your home
Transactions and costs can get complicated and it may be hard to navigate that
Your eligibility for Age Pension might also be influenced
Your ability to afford aged care could be affected
You might end up eating into money that you need for the future – such as for medicare
You might be locked into fewer options if your circumstances change
If you are the sole owner and someone else lives with you, they may no longer be able to live in the house if you move out or pass away
