Tracking Property Value (As an Asset)

Hey YNAB fam!

Question.  Does anyone consider their property as an asset within YNAB?  We still own a mortgage on the property but find the charts off because they do not take into account the current market value of our property.  I thought it would be interesting to track both property value and mortgage amount.

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  • I have mine listed as a tracking account. However, I rarely if ever adjust the value. I just did a refinance that included an appraisal and that was the first time I changed the value in years. The numbers on Zillow, Redfin, and similar are generally not accurate.

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 4 mths ago
      • Reported - view

      I do the same as jenmas . I used purchase price until a I refied, and then updated to the appraisal value. I also track the mortgage.

      I do not track any other physical assets because I consider them to have zero long term residual value (including the cars).

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      • Superbone
      • YNAB convert since 2008
      • Superbone
      • 4 mths ago
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      Same. On my last house, I used to occasionally change the value based on Zillow but on my current house, I just use the starting purchase price statically. I have an excel sheet that tells me the monthly interest. I enter in a years worth of interest into the scheduler to help automate the process monthly.

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 4 mths ago
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      Superbone Zillow is pretty much fiction. It is higher than my appraisal from March 26th by 3.66%. Just today it jumped by $3.5k. That's a feel good jump, but it ain't real.

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      • Superbone
      • YNAB convert since 2008
      • Superbone
      • 4 mths ago
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      nolesrule Yep. It's all fiction until you sell it. The purchase price -  the ever reducing mortgage is good enough for me net worth-wise.

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  • No, we don't track the mortgage or the house. The mortgage is too complicated with different interest amount every month so can't automate recording transaction. And the house value is a pretend number. As jenmas said, the amounts online are inaccurate.  I have a general big number idea of the value and I know the mortgage balance which doesn't change much month over month so I just keep a "plus net house value" amount in my head that I add to the net worth in YNAB.

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  • I don't track either mortgage or home value in YNAB. But if I were dead-set on having my net worth in YNAB, both would be represented. I am principally interested (hardy har har) in the amount of money I put down, and the amount I have paid down. Equity based on the housing market can vanish in an instant. So the only value I use, in an app outside YNAB, is what I bought my home for three years ago. It would be reasonable to expect, even now, that my house would sell for 15% higher (or more) than I paid for it, but I don't include that "value" as part of my net worth because I can't take it to the bank until I sell the house. 

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  • Nope. I use YNAB to plan my near to mid-term spending. I don't put the mortgage liability as a tracking account nor the property as an asset. Nor do I put my cars (asset or loans), computers, clothes, furniture, etc. that would compose a true net worth. Seeing an increase in the "modified net worth" -- limited to liquid assets less CC debt -- is sufficient for my needs.

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  • I do track the mortgage as a liability and the supposed value of the house as an asset. For house value I use the amount the bank uses; the price they use to calculate loan to market value. No guarantee we’d be able to get that price of course, but exact enough for the purpose to my taste.

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  • WordTenor said:
    I don't include that "value" as part of my net worth because I can't take it to the bank until I sell the house. 

     And another fundamental problem is that for most people, when you sell your home, you buy another one. So you don't have access to the equity unless you are totally downsizing or moving to a cheaper market.

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  • I don't track my full net worth in YNAB, just my cash accounts, taxable investment account (which is to subsidize my true expenses in the long term) and my HEL (LAST NON-MORTGAGE DEBT!!!!) and credit cards.  I don't have my mortgage balance in YNAB or my retirement accounts.  I track that stuff in Mint and Personal Capital.  I don't want to see all that extra data every time I log in, as it doesn't affect my day to day budgeting.  I track my net worth once a month in a Google spreadsheet.

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  • Hello,

    I do. I actually added my property value and readjusted with the current value. It is a new property with a mortgage. You will have asset = value property   and then liabilities = mortgage balance.

    I would highly recommend readjusting the property value annually for it is to reflect on your net worth report.

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 4 mths ago
      • Reported - view

      Khaki Chef Where do you get the value that you use for your annual adjustment? As someone who has is on my third house, I've never seen a decent valuation source online that I would be willing to use.

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      • Superbone
      • YNAB convert since 2008
      • Superbone
      • 4 mths ago
      • Reported - view

      Khaki Chef Nah. Been there, done that. What does that really do for you? Those values aren't real until/if you sell. Maybe if I was on my final house I'd think about it.

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      • Khaki Chef
      • Khaki_Chef.6
      • 4 mths ago
      • Reported - view

      nolesrule  I live in the Netherlands and each year the municipality make an assessment on the value of the property. The value is the base for property tax. It is true that is an indication and will be become real only once I sell,  I keep in mind that the value can go up or down. I live in a brand new neighboorhod so it is otherwhere a good indication. You cash money or Stock can loss value with Inflation and strong value drops, you have all that stated there> I think it is more a preference than a stick rule, I prefer seeing all my assets.

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 4 mths ago
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      Khaki Chef 

      Khaki Chef said:
      I live in the Netherlands and each year the municipality make an assessment on the value of the property. The value is the base for property tax.

       I live in the U.S. I've lived in 3 different states and owned houses in all 3 of them. In my experience the tax assessment value bares no resemblance to market value. But that may be different in the Netherlands.

      Like 1
  • I do, mostly because it's very simple to click on and off in the reports. By having it there I can explore the reports with the mortgage and house, with only the mortgage but not the house, with neither, etc. I have also occasionally switched the value from somewhere halfway between purchase price and Zillow/Redfin average (I am in a HCOL area but purchased at the bottom of the market in 2012 so there's a huge difference) to purchase price. 

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  • Awesome thanks for the feedback and suggestions everyone!

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