Buying home

[Thomas Baumgart]

Hi,

+1 from me as well. This applies nicely to your house project as well. In case 
you have a mortgage, a loan account may also be involved. If that is the case, 
the loan account will get a transfer to the asset account of the house. 

Example: You buy a house for 100 (currency doesn't matter here). You have 75 
in cash of you can spare 50 and need 50 from your bank. You have the following 
scenario:

Account cash  C: 75
Account house H:  0
Account loan  L:  0
Networth: 75

Transaction 1:
C -> H: 50

results in 
Account cash  C: 25
Account house H: 50
Account loan  L:  0
Networth: 75

Transaction 2:
L -> H: 50

results in
results in 
Account cash  C:  25
Account house H: 100
Account loan  L: -50
Networth: 75

It's great to see that people are using the software we develop for a long 
time and that it helps them to get their finances under control. I am using 
KMyMoney myself for the past 15 years (and develop it for the same amount of 
time ;)  ).


On Tuesday 12 July 2016 13:08:28 Koos Pol wrote:

> +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.
-- 

Regards

Thomas Baumgart

GPG-FP: E55E D592 F45F 116B 8429   4F99 9C59 DB40 B75D D3BA
-------------------------------------------------------------
Windows is not the answer. It's the question. The answer is no!
-------------------------------------------------------------
-------------- next part --------------
A non-text attachment was scrubbed...
Name: signature.asc
Type: application/pgp-signature
Size: 225 bytes
Desc: This is a digitally signed message part.
URL: <http://mail.kde.org/pipermail/kmymoney/attachments/20160712/7a41a652/attachment.sig>