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TGIF looks forward

By: Natasha Smith

[email protected]

WITH THE success of the first TGIF (Thank Goodness It’s Friday!) lunch last month, The Resident is looking forward to the next event on February 23, when Steve Rogers from Blacktower Financial Management Ltd., will talk about Equity Release and Home Reversion.

Mr Rogers told The Resident that equity release is a relatively new product to Portugal and, in its simplest form, is a method of elderly residents raising capital using real estate, usually from residential properties, as a means of supplementing pensions.

“Most people in Portugal have the majority of their money tied up in their property, which most financial advisers will say is the smart thing to do. Your home is your biggest asset and it can be used to raise capital if you need a lot of money fast.

“Equity release is essentially a loan using your property as collateral. The bank can lend owners up to 100 per cent of the value of the property, but not all that money is yours,” he said.

Owners are encouraged to invest a good portion of the money in new or existing business ventures, which the bank holds in a portfolio. By investing in stocks and shares or other projects, the revenues can, over time, help or completely repay the amount of money borrowed, along with the interest.

“Equity release repayments are usually over five, 10, or 25 years and owners with little or no mortgage on their home are preferred,” he said. “Caution is advised, however, as with any risk taking venture such as this, the investment return is not guaranteed and owners must be careful about choosing the right investments.”

To find out more about Equity Release and Home Reversion, book your place at the February 23, TGIF lunch at the Hotel Garbe in Armação de Pêra, by sending an email to [email protected].

Tickets for the lunch cost 19 euros per person.