Cultural roadblocks have largely hindered the popularity of reverse mortgages and their general acceptance among the India’s population, according to an article from BusinessWorld.
There are three main reasons why reverse mortgages have not taken off yet in the country, writes guest columnist Anuj Puri, chairman and country head of Jones Lang Lasalle India.
The first deals with the way Indians look at property as a primary asset, Puri writes, one that is ideally handed down to generations and not “encashed” in any form unless “extreme” financial issues prevail.
Secondly, reverse mortgages may have been slow to catch on among India’s senior population because, as Puri notes, elderly people who own property in India do not, as a rule, lack the financial means to support themselves during retirement.
“Indian culture has the care and support of senior citizens hard wired into it,” he writes.
Lastly, the reverse mortgage product itself is not well understood in the county as traditional home loans are.
“In any case, it does seem that unless the classic reverse mortgage is tweaked in a manner to make it more playable to Indian sensibilities and values, it is not likely to become a big hit,” writes Puri.
Read more at BusinessWorld.
Written by Jason Oliva