Real estate and senior living sector

Budget 2022 is an opportunity for the government to ease the burden on a demographic that has been most affected by the double whammy of decreasing interest rates, increasing retail inflation and medi

Budget 2022 is an opportunity for the government to ease the burden on a demographic that has been most affected by the double whammy of decreasing interest rates, increasing retail inflation and medical expenses inflation over the past couple of years – retirees and senior citizens.

With a fixed income dependent on returns from savings made during their working life, senior citizens need the government’s intervention so banks can provide a higher rate of return on their deposits and the income tax slabs and tax levels are revised to leave more money at their disposal.

Improvement in the terms of reverse mortgage is another area where government policy can help unlock the value in an asset such that senior citizens can enjoy the benefits of the same in their lifetime. An amendment in the rules that allows the owner to continue to live in the home that (s)he has put on mortgage and an increase in the percentage of home value that can be provided as a loan would go a long way in making reverse mortgage another option for senior citizens to monetise their investment.