1. Open the existing client record, if it is not already open.
2. Click/tap the plus button in the bottom right of the Dashboard screen.
3. Click/tap Property in the Finances and Accounts section of the menu which appears:
4. Complete the data entry fields which appear in the Basics screen (those marked with an asterisk are mandatory fields). Joint ownership is assumed but you can amend this to sole ownership. The Asset Type field allows you to select different assets. It is important to enter a Purchase Value for all types other than Main Residence. Market value and Purchase value are used to calculate capital gains on properties and assets. These entries may be identical, especially for future purchases.
If the asset is already owned keep the 'Is this a Future Purchase?' as No.
The Growth Rate will show the default rate from the assumption shown in Plan Settings. You can amend this growth rate by clicking Edit. Amending the growth rate here will only affect this asset item, it will not affect any other items in the plan.
5. By default the ownership of the asset will default to start at the start event for the plan and end at the mortality event.
You can view this is Timing
If you would like to amend the time-frame for the asset, e.g. sell it before the end of the plan, click/tap Timing on the left hand side of the screen to edit the start and end event for the income.
You can edit the start and end events by dragging and dropping different events into the item's Starts and Ends boxes.
e.g.
6. Click the Save button, top right.
7. Repeat steps 2 to 6 for any other assets you wish to add to the plan.
Debts
Primary residences and rental properties often have linked mortgages. The mortgage debt can added here. Click/tap Linked Debts from the menu on the left hand side of the screen and then select Create and Link a New Debt.
Complete the details, those marked with an asterisk are mandatory fields. Choose Mortgage in the Debt Type field. There is the option to choose Repayment or Interest Only in Payment Type and in the Payment Amount field, you have the ability to enter the appropriate frequency e.g. monthly, weekly, annual.
Where the repayment amount is not known you have the option to enter the number of years until the mortgage will be repaid.
Click/Tap Done and then Save.
Where you have created the Mortgage debt BEFORE adding the property, you can link the existing mortgage. After you have selected Linked Debts, you will see an additional option, Link to an Existing Debt Click/Tap and then select the Debt you want to link it to.
Linking the mortgage to the property ensures that it will be repaid if the property is sold in the future.
Rental Properties
Where your client has rental properties and receives an income from them, the income can be added here. Choose the asset type - Rental from the drop-down menu in the Basics screen. As mentioned earlier, it is important to include a purchase value.
Select Linked Income from the menu on the left hand side and then click/tap
Complete the required details and click/tap Done
If the BTL property has joint owners, the income will be split equally between them. The income will appear in Dashboard under Income (Other Income) and it is here where you would make any amendments to this rental income.
Where you have created the Rental income stream BEFORE adding the property, you can link the existing income. (Rental Income should be added as Other Income, not Employment income.) After you have selected Linked Income, you will see an additional option, Link to an Existing Income. Click/Tap and then select the income you want to link it to.
Where your client also allocates Expenses to the Rental Property, there is the ability to link an existing or create a new expense.
Where can I see the Property and Assets in the plan?
The Property and other Assets can be seen in the Assets chart in either the Dashboard or the Let's See screen.
