Add a Private Property Asset

Add a Private Property Asset


To add a new asset click the CREATE NEW ASSETS button.
The ADD ASSET page will then be displayed. 

Select the "Private Property" Asset Type from the dropdown menu.




After selecting the Asset Type, click NEXT. 


The ADD ASSET DETAILS screen will then open.  This screen contains all of the details relevant to the Private Property asset.



Helpful Hints on Private Property Data Entry

1.      Asset Name
  • Enter an free text name of up to 40 characters, such as "Principal Place of Residence", or "Home".
2.      Owner
  • Depending upon how you entered the data for the client, the drop down for owner will include the name of each member and the option "Joint"
  • The option you choose here will have an impact for modelling.  For example if the asset is owned by one member and not the other, any associated funding bank account will have to be owned by the same owner.  This is to ensure that all tax calculations and investment income is attributed correctly.
3.      Centrelink Type

The first Private Property asset that you enter will default to the Centrelink type of "exempt".   If this "Private Property" asset is not an asset exempt for Centrelink entitlement calculations, you will need to change it by selecting the appropriate treatment from the dropdown menu.

All subsequent Private Property assets that you enter will default to "Asset", as the category to be used for Centrelink calculation purposes.   

4.      Date Buy

Enter the date the property was acquired.  If you do not know this date, just ensure the date is prior to the model start date if they already own the property (i.e make sure it has already happened).   

Note:  With Investment Properties, it is important to ensure this date is correct if you wish the system to calculate the Capital Gains Tax (CGT) implications associated with the property if it is to be sold.

5.      Date Sell

This date should be set to "Model End", if the property is not being sold.  

If you include an actual date, the system will sell down the property and the proceeds of sale will then be made available as cashflow.

6.      Current Cost Base

This is the purchase cost of the asset.  If you do not know this value, you can enter the current value.

Note:  With Investment Properties, it is important to ensure the purchase price / cost base is correct if you wish the system to calculate the Capital Gains Tax (CGT) implications associated with the property if it is to be sold.

7.      Current Value

         Enter the current value of the property.


8.      Rate Growth %

Enter the growth rate you would like used on the property asset.


Ensure all fields with REQ next to the title are completed. 

Click ADD when completed to save the details.

You will then need to add in the CURRENT DEBT FUNDING.


CURRENT DEBT FUNDING
By scrolling downwards, AFTER you have clicked ADD to save the Asset Details, you will see the Current Debt Funding section.  This is where you link the loan account you earlier created on the Accounts screen to the Asset.  By doing this, if the asset is ever sold, the system will automatically pay out any debt associated with the property.  




Enter the Loan Balance, and the Loan Account that is associated with the Asset.  
As this asset is already owned, there is no need to enter details of any Cash which was used to purchase the property.

Note:  The question "Keep?" simply means do you want to keep the entry.  If you want to remove the entry, click on the dropdown menu and select "No".    You may have noticed there is no "BIN"icon on this screen.


Link to Next Article - Add an Investment Asset

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