Data Entry: Primary Home (own, sell, relocate)

Adding Primary Home to a Financial Plan

As a client's assets are added to their financial Profile, be sure to add the home where they currently reside. To add a Primary Home, navigate to the client's Profile > Net Worth and click on Property in the left-hand column.

Choose Rent to indicate the monthly rent on a client's primary residence. Choose Own in the drop-down box to enter details on the property.

Owning a home as a primary residence

After selecting Own, complete the data on the home to incorporate it into the client's Net Worth and Cash Flow. This also enables the use of the home in Goals.

Home Name: Name the home.

Owner: Specify if the home is owned by the client, the co-client, or owned jointly.

Purchase Year: Defaults to Already Started, which simply assumes the client purchased the home sometime in the past. The other two options allow you to enter the specific time of purchase. Select Calendar year to specify the year the home was purchased, or select Client's age to select how old the client was when the home was purchased.

Purchase price: The amount the client paid for the home at the time of purchase.

Current value: An estimate of the current market value for the home.

Annual appreciation: The rate at which the property's value will be estimated to increase or decrease moving forward. This may be taken from industry data, historical data, or some other source. This value will be used in retirement projections and tax projections.

Annual property tax: The amount the client pays in taxes on the property.

Annual insurance: The amount the client pays in homeowners insurance. Be careful not to double-count insurance, as the property may be covered by other insurance types.

Annual maintenance: The amount that clients spend on annual maintenance or any other housing-related expense they wish to track.

Click Save when all data is complete.

Relocating a primary residence

Life is complex and always changing, and RightCapital allows for excellent financial planning including all of life's complexities. To accommodate a relocation, add a Goal to reflect this change. RightCapital will adjust the primary home, taxes, sale price, cash flow, and capital gains taxes as needed based on estimated values at the time of sale and the location of the relocated client.

Navigate to Profile > Goals and select Add Goal > Property > Primary Home Relocation.

Completing the Primary Home Relocation card enables RightCapital to estimate changes in taxes, cash flows, and net worth automatically.

Location: can either be the state they currently live (if the relocation remains in the same state), or a new state as their new location. If a state is selected other than the state they currently reside in, RightCapital will automatically adjust their tax law according to that new state's law at the date of relocation.

When: Indicates when the client will relocate. Options include Calendar year, Client's age, Co-client's age, Client's retirement, or Co-client's retirement.

When choosing to buy a new home, Purchase price, annual appreciation, annual insurance, annual property tax, and annual maintenance operate just as they did in the Primary Home card described above.

Down payment, term, and  interest rate provide important details on the nature of the mortgage and cash flow impact of the new home.

Current home

You can also specify what happens to the current primary home. The default option is 'Sell immediately', which will sell the exiting property. Any mortgage and home equity associated with the property will be marked as paid and the net proceeds will be added to the cash flow.

You can also convert the primary home to a vacation home or a rental home. If you convert to a rental home, you will be asked to enter information about new rental income, additional maintenance expense, and depreciation. Additional annual maintenance expense will be added to the annual maintenance value that was entered on the previous primary home.

RightCapital is committed to enabling your success. Each week, we set aside time to cover important updates and host a Q&A with the product team, giving you a direct line of access to the experts behind the curtain. Visit the Upcoming and Most Recent Webinars area to register today!

Also, be sure to check out the Getting started guide and our YouTube channel for more!

For additional assistance entering primary home information into RightCapital please contact Support.