Buying home

[Koos Pol]

+1 for Matthias. Don't over engineer your expenses. The more
detailed/specfic it gets, the harder it becomes to fill all your
information needs. 

One bucket for the car investment and one bucket for all the expenses
must be sufficient. 

Koos 

On 2016-07-12 12:14, Matthias Gehre wrote: 

> 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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