Equity Loan: An Alternative Solution to explore the Asset Rich and Cash Poor owners

Jack and Lina Tan have been married for over 25 years and are now into thier 60s. They are almost retired and they own and resided in their landed house for over the last 10 years.

However, due to the Covid-19 situation, Jack's F&B restuarant has gone into some bad debts which required them to raise some cash urgently. It is important to know and understand that there are options such as taking an Equity Loan if you need extra cash, besides selling your house.

Initially, they were pursuaded by their friend to sell their house so that they are able to liquidate the property and also take the opportunity to restructure their investment portfolio and of course to raise the much needed cash. As they wanted a 30% premium to the valuation of their house, it was not easy to find potenital buyers who are willingly to fork out such a high figure for the house that was s it was in the original condition, aka, no renovation was done  since the Tan's bought it some 20 years ago.

Jack met James, a property agent during of their one of their runs at Macritchie Reservoir.  James is familar with the Equity Loan which allows the owner to take cash out of the property if they did not intend to sell their landed property just to raise cash.

James linked Jack and Lina with a Mortgage Broker, Tony who had experienced in arranging such an equity loan. With the equity loan, the Tans were able to tie over the difficult period.