Transcript:
In this training, we’re going to learn how to input a property and its associated expenses into your client’s plan.
To do that, let’s go to the plus button and select the Property tile.
Within the Property section, you’ll see several different property types available. These include:
- Primary residences
- Vacation homes
- Rental properties
- And other non-traditional property types
For this example, we’re going to enter a Primary Residence for our clients.
We’ll give the property a name, in this case, Main Residence.
This property is jointly owned, and the current market value is $850,000.
The clients originally purchased the property for $780,000.
This is not a future purchase. However, if you wanted to model a property that your clients plan to purchase in the future, for example, a future home purchase or downsizing scenario, you would use the Future Purchase option here.
As a quick aside, anytime you see these dotted lines within the software, that indicates inline help is available.
These sections include:
- Additional videos
- Linked support articles
- And further explanations to help you learn more about how different features work within Voyant
Next, the Growth Rate shown here is coming from your Plan Settings. This determines how the property value grows year over year within the plan.
Under Timing, this property already exists within the plan and will remain there until the end of the planning horizon.
If you wanted to model the sale of the property, for example, if the clients planned to downsize or purchase a new home, you would simply select a different event on the Timeline and use that as the end event. The software would then liquidate the property within the plan automatically.
For this example, we’re going to keep the property in the plan for the clients’ entire lifetime.
Next, we’ll move to the Linked Debts section.
Here, we’re going to link a mortgage to this property.
It’s important to link the mortgage directly to the property rather than entering it as a standalone expense. This ensures that if the property is ever sold, the software knows to pay off the mortgage using the proceeds from the sale and remove the debt from the plan appropriately.
Let’s go ahead and enter the mortgage details.
We’ll enter:
- The mortgage balance
- The interest rate
- And the payment duration
If you don’t know the exact payment amount, Voyant can calculate it automatically based on the loan balance, interest rate, and loan duration.
You’ll also need to specify whether the mortgage interest is tax deductible.
We’ll click Done to save the mortgage.
Next, if there are additional expenses associated with the property, such as HOA fees or property taxes, those can be entered under Linked Expenses.
Let’s add those now.
First, we’ll add HOA fees.
These HOA fees are $350 per month.
We’ll click Done to save.
Next, we’ll add property taxes.
The property taxes are $6,000 annually, and these are tax deductible.
We’ll click Done to save those as well.
Under Linked Income, I’ll come back to this in another video, but this section is especially useful for rental properties that generate income.
That option is available here if needed.
We’ll now click Done to save the property.
One other thing I wanted to point out is the Assets by Type pie chart.
This chart allows you to review the value of the client’s assets by category, including:
- Non-liquid assets
- Qualified assets
- And taxable assets
Next, let’s go into Year View and review the Expenses section.
You can now see:
- The HOA fees
- The mortgage payment
- And the property taxes
If you’d like to see how those expenses are being fulfilled within the plan, you can click directly on the expense and review the payment source.
You can also go to the Property tab and review:
- The end-of-year property value after growth
- The linked debt
- And the amount of equity the clients have in the property
If you then go into the Debts section, you can see:
- How much principal has been paid down
- The end-of-year loan balance
- And the interest rate associated with the debt
Using the slider bar, you can scroll through the years and see when the mortgage is projected to be fully paid off.
You can also use the dropdown menu and switch to the Debts Chart to visually review debt balances across the lifetime of the plan.
I hope this has been helpful.
If you have any questions, feel free to reach out to your support team by clicking the name of your client in the top-right corner, selecting Request Support, entering your question into the text box, and sharing client access.
Thanks for listening.