An obvious method is to sell their current home and buy a smaller and cheaper one. This will free up money that can be consumed. But many will stay in the villa for as long as they can.
Pensioners, for example, will usually start using housing wealth
Many, especially pensioners and perhaps to the greatest extent their spouse, live with low income but high wealth. The wealth is most often the dwelling. In densely populated areas, the dwelling can easily be worth between NOK 2-6 million. If one lacks the cash to live a decent life as a pensioner, it is common sense to not use part of the housing wealth.
It is easy to use up some of the housing wealth, but it requires abandoning the mysterious attitude that one should leave the earth debt-free. Why? Forget it. The money is yours, you have worked for them and have every right to use them up.
The banks will lend us money and as much as possible
Most major banks offer installment-free loans to pensioners who can provide good security and serviceability. For example, if you have a home worth NOK 2 million, you can theoretically borrow up to NOK 1.2 million with 60% security in the home. But most people do not need to borrow as much.
The most important thing is to take out loans of a few hundred thousand so that you get better advice on a daily basis. Most banks offer a mortgage-free loan that can run for ten or fifteen years, for example.
That means you only pay interest on the loan during those years
The money can be deposited into a high-interest account. Net interest loss for the first time is only a few hundred bills a month.y for a motorcycle. There are many people …