Buying home

[Matthias Gehre]

Hi,

I have something similiar made with my car. I have an asset account "Car"
where I transfered the money to when I bought the car.
Then I made a monthly scheduled transaction that deducts from the "Car"
asset toward the expense category "Value loss".
Most maintenance I directly book to an expense category. Only bigger stuff,
like redoing the engine is booked to the asset account.

Cheers,
Matthias

2016-07-12 3:34 GMT+02:00 Bodomit . <dbodom at gmail.com>:

> Hi there,
>
> I am a KMyMoney user since about 13 years and I really love this software:
> first of all, thank you very much to all devs for creating and sharing it!
>
> When I started using it, I was a boy and the most complicate transactions
> I had to manage were part-time jobs and study expenses :)
>
> Now I'm old enough to buy my first house: I am finding out it is a very
> long and complicate process and I am also having some troubles with the
> transaction management.
>
> Quick question: what is the most correct way to handle it?
>
> Let me try to better explain what I've tried to do.
>
> The expenses I am having are divided into three categories:
> a. Expenses for buying the house itself
> b. Expenses for maintenance (eg. cutting grass in the garden, fixing roof,
> …): those to keep the house in good shape
> c. Expenses for improvements (es. restructuring, building a new room, …):
> those to improve the house
>
> I've started by creating an expenses category "house" and putting all the
> expenses together. It didn't work, because spending money on an house is
> not like spending it on an holiday: once the money is gone, one still has
> the house, that is worth "something"; by accounting everything as
> "expense", I've ended up with big unrealistic spikes in every report.
>
> Then I've tried by creating an "asset" account and moving all the money
> spent on the house there: I also had problems, because the house value
> changes over time (slowly decreases until maintenance is done, increases
> with improvements, and fluctuates with the market) and I couldn't find a
> way to represent this situation.
>
> Last, I've tried creating a new investment, and handling the house just
> like it was a stock: it didn't work too, because a stock does not need
> maintenance and then there is no place to write down maintenance expenses.
>
> So, let's say the house is worth 100 when bought, It loses 1 value every
> year unless maintained, so every year I have to spend 1 to keep the house
> value to 100. In addition, I can choose to spend extra money to increase
> the house value. And beyond all, the value fluctuates anyway just like any
> good, but the daily updated market price is unknown.
>
> In the end, I am now very confused and writing this long post in seek for
> advice from fellow users: thank you for reading it.
>
>
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