She posted on social media platform X, “We talk of more debt and less equity risk for senior citizens. But illiquidity risk is far more problematic. As you get older, get more liquid.”
Three cases known to me where senior citizens have property assets, need liquidity and are not able to get it because in different cases:
1. Tenant won’t vacate the house
2. Property market is not conducive to a sale at this time
3. Transaction will be all or largely cash…— Radhika Gupta (@iRadhikaGupta) August 10, 2024
The biggest problem that senior citizens face with property assets is to convert them into liquidity.
The CEO mentioned three cases where senior citizens have property assets and also have the need for liquidity but are not able to get the same.
The three cases where senior citizens are not able to sell their property assets included tenants not vacating the house, the property market is not conducive to sale and lastly, transactions will be all or largely cash.
Gupta posted, “Three cases known to me where senior citizens have property assets, need liquidity and are not able to get it because in different cases: Tenant won’t vacate the house, Property market is not conducive to a sale at this time, Transaction will be all or largely cash.”
Several social media users commented on Radhika Gupta post. One user mentioned that, “Deep insight. similar story for us. luckily my parents have better liquidity + I fortunately did well, so we don’t have liquidity problems but flat liquidity ain’t a trivial problem, it’s a real risk.”
Another user wrote, “Liquidity of assets – at any age – is like the Daily oxygen Dose for the body. Unfortunately, with lack of Financial Literacy, theres no thought given to this critical aspect of investing.”
A user wrote, “Cash flow management is such an important aspect of Financial Planning! I hear people talk of randomly investing in an asset class without factoring in how it affects their overall financial plan.”