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Equity release stays strong in adversity

Conventional wisdom states that buying a house in a falling market is akin to catching a falling knife.

So why is there still an appetite to buy shares in homes in return for equity – just why does the equity release market continue to offer reversion deals?

To understand this means applying long-term projections and learning lessons from history. Established product providers know that when the low point is passed, a brighter future will await the property market.

As long-term observers of trends in demographics, life expectancy and demand for property, equity release providers are well placed to judge what the future holds. After all, history is a great teacher.

While the housing market is in limbo, funding for equity release remains strong and is often underpinned by longer term sources of funding such as annuities.

This outlook offers a more positive perspective on today’s market and should be at the forefront of advisers’ minds when discussing property wealth with clients.

Housing market professionals who keep their eyes trained on the horizon know that property is a long-term asset on which borrowing for equity release could be a sound choice.

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