Retirement Planner GuideReal estate
The Real estate tab projects the value of each property, the mortgage on it, and what happens when it is sold. Properties count towards net worth, and a sale turns their equity into investments that can pay for retirement.
Add a property
- Edit the client and open the Real estate tab.
- Click + and enter the Name, Current Value, Debt Amount (the mortgage owing), Mortgage Rate (5 for 5%) and Monthly Payment.
- Click Save (⌘S).
Properties are copied from the profile into a strategy the first time the strategy is opened. After that, each strategy keeps its own copy: change a property’s value, mortgage, appreciation and sale age on the strategy’s Real estate tab, and the Debt tab and net worth follow. This lets one strategy pay a mortgage off faster or sell a property, while another keeps it. A property added to the profile later appears only in strategies that have no properties yet.
The Real estate tab
The Info tab lists the strategy’s properties. Double-click a value to change it.
| Column | Meaning |
|---|---|
| Name, Value | The property and its value today. |
| Debt, Rate %, Payment | The mortgage balance, its yearly interest rate and the monthly payment. |
| Appreciation % | How much the property gains in value each year. |
| Dispose age | The age it is sold. 0 means it is kept. |
| Excl. NW | Tick to leave the property out of net worth — for example, a home you never intend to sell. |
The Chart tab shows the equity — value less mortgage — of all properties together, and the Table tab lists Total Value, Total Mortgage and Total Equity for each age, and Disposal Proceeds when a property is sold.
Sell a property
Enter the age in Dispose age. In that year, the property’s value less the mortgage still owing is added to the client’s non-registered Investments, where it grows and can be withdrawn like the rest of the account. The mortgage stops.
Graham’s strategy Sell cottage at 75 sells the cottage at 75 and stops the cottage costs in its budget, to see what the extra money is worth.
Tax on a capital gain from the sale is not deducted.
Mortgages
Mortgage payments appear on the Debt tab and reduce income in the chart; the balance owing reduces net worth. A mortgage stops when the property is sold.