What is the best way to account for future home appreciation in lifetime planner?

When setting up my plan, I included my home and it's associated loan, as one would expect. However, I can't find anywhere in Quicken where future appreciation for a home can be entered. (Did I overlook something?) So, I added "Income" to the asset in planner.

Unfortunately, this doesn't seem to be the best way to approach this, as the "income" is added to my planner as just that - additional income to pay for expenses.

So, what is the best way to include home appreciation in Quicken such that it is appropriately accounted for in lifetime planner? Is there "future appreciation" I missed somewhere when adding my home?

Thanks for your help.

BTW - While I did read this article (https://community.quicken.com/discussion/comment/20178060), it did not seem to fully address my question.

Best Answer

  • Scooterlam
    Scooterlam SuperUser, Windows Beta Beta
    edited July 17 Accepted Answer
    To adjust rate of growth of the home, after you've added the current home in Lifetime Planner, go back to that asset (Change Assumptions) and click the Sale Info button (image).   Uncheck Exclude from Plan, if this Sale Info is greyed out.



    Then, select the appropriate Expected Growth Rate in the drop-down (image).   FYI.  When you created the asset originally, Quicken assumes that the growth rate would be equal to your inflation rate setting.  Here you can modify that assumption for this particular asset.



    You can check your work by going into the Plan Results graph, select the year of sale and see the sale transaction with the growth rate applied.  In this test case, I bought the home for $300K today and sold it for $600k years in the future.

    For this check, it may be useful to change the graph to Future Dollars (upper right gear pull-down).  Note too, that home buys and sales are shown only in the year the transaction occurs.




Answers

  • Scooterlam
    Scooterlam SuperUser, Windows Beta Beta
    edited July 17 Accepted Answer
    To adjust rate of growth of the home, after you've added the current home in Lifetime Planner, go back to that asset (Change Assumptions) and click the Sale Info button (image).   Uncheck Exclude from Plan, if this Sale Info is greyed out.



    Then, select the appropriate Expected Growth Rate in the drop-down (image).   FYI.  When you created the asset originally, Quicken assumes that the growth rate would be equal to your inflation rate setting.  Here you can modify that assumption for this particular asset.



    You can check your work by going into the Plan Results graph, select the year of sale and see the sale transaction with the growth rate applied.  In this test case, I bought the home for $300K today and sold it for $600k years in the future.

    For this check, it may be useful to change the graph to Future Dollars (upper right gear pull-down).  Note too, that home buys and sales are shown only in the year the transaction occurs.




  • fganter
    fganter Member ✭✭
    Thanks for that @Scooterlam. That's what I was looking for.

    I didn't like the result (shows I'll run out of money before I expected), but it likely paints a more accurate picture of what I need to plan for.
  • Scooterlam
    Scooterlam SuperUser, Windows Beta Beta
    edited July 17
    You're welcome!

    There is a more extensive help section pertaining to treatment of assets in LTP that may be helpful to you.   

    In the Asset Accounts window, click on the help button.  



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