Savvy Way for Seniors to Manage Their Real Estate Equity - by Christian Mirner

Savvy Way for Seniors to Manage Their Real Estate Equity - by Christian Mirner: "Few would deny that real estate is a solid investment. Nationally, there hasn't been a decline in home values since the end of World War II, according to the National Association of Realtors in a report the one-million-member trade organization released in March of last year. These widespread equity gains in residential real estate, as well as monies from other sources, have led many to invest beyond their primary residence and into income-producing properties such as rental housing, apartment buildings, or small office or retail centers. Over the years, many of these investment properties have built up substantial equity.

However, many seniors now find themselves in a quandary. They have become equity rich, but are cash poor-- with increases in the value of their property far outpacing income growth. Plus, they have grown tired of the day-to-day property management headaches such as toilets, tenants and trash, and want to simplify their lifestyle and enjoy golf, grandkids and gardening.

Of course they could always sell the property and unleash that accumulated equity, but this can have disastrous tax consequences. Moreover, even if they decided to sell and take the tax hit, where do they re-invest? After all, the Dow Jones is still 1,000 points below its high water mark r"