When consulting with those preparing for retirement, I often notice that even within Thousand Oaks, the circumstances can vary significantly by neighborhood. Some areas, like near Westlake, have high home prices, while others are more accessible. This difference is quite important when calculating retirement assets.

Looking at the overall figures, as of June 30, 2026, the average home value in Thousand Oaks is $1,052,875 according to Zillow, which is a 0.5 percent increase from the previous year. Depending on the neighborhood, this value can be much higher or lower, but overall, it remains above a million dollars, meaning long-term homeowners often have built up significant equity.

One way to utilize this equity in retirement planning is through a reverse mortgage. This product allows homeowners aged 62 and older to borrow against the equity in their home, receiving funds as a lump sum, monthly payments, or a line of credit instead of making monthly repayments. The loan principal and interest are repaid when the home is sold, the owner passes away, or the home is no longer used as the primary residence. The Home Equity Conversion Mortgage (HECM), which is backed by the Federal Housing Administration, is the most common type and the only one guaranteed by the federal government.

There are three main items to check. First is the eligibility requirement: you must be at least 62 years old, the home must be your primary residence, and you need to pass a financial assessment to ensure you can continue paying property taxes and insurance. Second is the cost: the origination fee, mortgage insurance premium, and initial costs of about 2 percent plus an annual 0.5 percent, along with closing costs, can make the initial burden greater than a traditional mortgage. Third is the long-term impact: over time, the equity in the home decreases, which may reduce the assets passed on to children.

The average effective property tax rate in California is 0.71 percent, which is lower than the national average, but even after obtaining a reverse mortgage, property taxes and insurance remain the owner's responsibility. If these costs become unmanageable, the risk of default applies equally regardless of neighborhood. Conversely, due to the non-recourse structure, if the home value falls below the loan balance later, heirs are not required to pay the excess, which serves as a safety net.

The method of receiving funds is also an important item to confirm. You can choose from a lump sum, fixed monthly payments, or a line of credit that you can draw from as needed, and a combination of these options is also possible. Since the equity amount varies by neighborhood, the best option will differ for each household. In areas like near Westlake, where equity is substantial, keeping a line of credit available for occasional use may be advantageous, while in areas with relatively lower equity, receiving fixed monthly payments to supplement living expenses may be more suitable.

The fourth item to check is alternative comparisons. Other loans, like a home equity line of credit, can utilize equity but still require monthly repayments. Selling the home and moving to a different area with lower tax burdens is another option, but it comes with the burden of leaving a long-time neighborhood, neighbors, and familiar healthcare providers. The best method will vary based on neighborhood and family circumstances, even within Thousand Oaks.

As of 2024, the percentage of the population aged 65 and older in California is projected to be 16.5 percent, and this number is expected to continue rising. In areas like Thousand Oaks, where the retirement population is steady, it is important to understand these programs accurately. HECM requires mandatory counseling from a HUD-approved agency before applying, so please ensure to check the specific circumstances of your address and discuss with family before making a decision. This article is not investment or legal advice, and consulting with a professional before any actual contracts is recommended.