With globalization on our doorstep or rather in our homes, Indians are getting a taste of how the other half around the world live. Shrinking of extended traditional families into nuclear families is also part of this globalization effect. This has caused many elderly parents and family members to stay back in their homes while the younger generation pursues their career elsewhere.

Financial independence is sometimes a mirage that one fails to grasp despite strict planning, especially in old age. The stream of life does not always flow the way one would like it. The answer in the past was to depend on ones children. However, the current elder generation is fiercely independent and often does not wish to or is unable to depend on others.

This is where the importance of Reverse mortgage comes in. Reverse mortgage is a stream of loan payments against the homeowner's net equity stake in the property. The lending institution gives the borrower a fixed sum of money on a monthly basis. The advantage of this scheme is the borrower is allowed to stay in the house as long as he is alive though the payment made will be limited to the tenure of the scheme.

The company assesses the value of the property and lends about 30-60 per cent of the value to the customer based on his age.

This scheme is popular in western countries which have yet to catch on in our country. Itís a practical solution to a practical problem. Proper advance planning will ensure the latter part of your life is free of any financial worries. When considering a Kerala flat or villa, ensure you are investing in a potential area. As the property appreciates, you can expect a greater return from a possible Reverse mortgage.