He posted on social media platform X: “We talk about more debt and less capital risk for older people. But the risk of illiquidity is much more problematic. As you get older, you get more liquidity.”
I know three cases of elderly people who own property, need liquidity and cannot obtain it for different reasons:
1. The tenant does not want to vacate the house.
2. The real estate market is not conducive to selling at this time.
3. The transaction will be entirely or largely in cash…—Radhika Gupta (@iRadhikaGupta) August 10, 2024
The biggest problem seniors face with real estate assets is converting them into liquidity.
The CEO mentioned three cases where senior citizens have real estate assets and also need liquidity but are unable to obtain it.
The three cases in which seniors cannot sell their real estate assets include tenants who do not vacate the house, the real estate market is not conducive to sales, and lastly, transactions will be made entirely or mostly in cash.
Gupta posted: “I know of three cases where seniors have real estate assets, need liquidity and can’t get it because in different cases: the tenant doesn’t want to vacate the house, the real estate market is not conducive to a sale at the moment, the transaction will be all or mostly cash.”
Several social media users commented on Radhika Gupta’s post. One user said, “A deep insight. We have a similar story. Fortunately, my parents are better off and I did well so we don’t have any liquidity issues, but lack of liquidity is not a trivial problem, it is a real risk.”
Another user wrote: “The liquidity of assets, at any age, is like a daily dose of oxygen for the body. Unfortunately, due to the lack of financial education, this fundamental aspect of investment is not considered.”
One user wrote: “Cash flow management is a very important aspect of financial planning! I hear people talk about investing haphazardly in a asset class without regard to how it affects their overall financial plan.”
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