If you’re thinking about buying a new home, some things to financially plan for are:
- Financing: Mortgage amount, down payment, APR, term
- Taxes: Interest expense tax deductions, property taxes
- Asset: Value at purchase, appreciation over time
- First-time expenses: Furniture, bedding, cleaning-supplies, storage rental (if downsizing)
- Routine expenses: Lawn maintenance, electric, water, cable
- Bigger expenses: Remodeling, roof replacement, A/C & heater replacement, repainting
- Inflation: Inflation makes these expenses even more expensive over time
FarPlanner makes it easy to estimate the impact of all these expenses on your overall financial plan. Just add a home ‘template tracker‘ to your plan, which bundles together the mortgage and all the expenses above as their own ‘trackers‘. You can then view and set values for each of these trackers to match the home you want to purchase. You can also click ‘Visualize’ to view and tweak your trackers on a graphical timeline.
Homes are expensive purchases, but their impact to your overall financial plan is even higher. By simulating with a newly added home using FarPlanner, you’ll likely find your overall net worth drops by 2 times the purchase value of the home over it’s lifetime. FarPlanner takes into account that you are taking funds away from investments to pay the home mortgage and expenses.
While most families will only own one home in their lifetimes, FarPlanner lets you add as many homes templates as you anticipate in your plan, to see the full impact on your overall financial plan.