Selling a Real Asset

In Snap, you can illustrate the financial impact of selling a home and either:

  • Downsizing to a less expensive home or condo,
  • Purchasing a more expensive property, 
  • Becoming a tenant at another property

Snap gives you full control over the sale price of the original home, the cost of the new home, how the surplus cash is invested in a downsizing scenario, and where the funds to purchase a more expensive home will come from.   Comparing scenarios is easy if you copy the original scenario before following the steps below.

1

Enter a Future Sale Age (Sale date)

Go to Scenario Setup -> Assets.

Enter a Future Sale Age for the Real Asset. The age to enter is the age the person (whose page you are on) will reach by the end of that future year. 

Click the gear icon to enter a date (YYYY-MM-DD) instead of an age. This gear icon is only visible when your mouse is over that cell in the table. Snap will automatically adjust the Future Sale Age based on that date.


2

The mortgage will be automatically paid off at the sale date if you have linked the debt to this Real Asset under Scenario Setup -> Debts. Joint debts can only be linked with jointly owned real assets and individual debts can only be linked to real assets owned by that person.


With automatic cash flow management enabled, the proceeds from the sale of the Real Asset are used towards the Debt repayment of $19,777 then towards the Base Expenses and other expenses, and the rest is automatically contributed to the Financial Assets according to default logic. There are multiple ways to override the default logic if desired.

If the Future Sale Age is before the CFM Start Age in the projections, the sale proceeds are assumed to be spent. Contributions to Financial Assets can be entered manually in this case.

After the sale, consider whether the client's Base Expenses will change. For example, will rent payments increase their Base Expenses? You can modify the amount and re-run the scenario to update the projections.

To illustrate the impact of the client purchasing a new home, select the appropriate link for details.


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