Super (AU): Pros and cons of home reversion

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
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