had used the custom assets to create CPF successfully.
was trying to do the same for Properties that I own. However, noted that if I follow the same approach as CPF, when the Portfolio report is run, the TValue is 0 , and the P&L becomes a -ve value (liability). In this case if the property is fully paid, it should not be a liability, otherwise the portfolio (P&L +Div) overview is wrong.
how should we update and capture Property as part of the Custom Assets?
I spent some time thinking about it and believe that StocksCafe unfortunately does not have a perfect way currently to handle “leveraged” investments.
In the example of properties, it is usually a leveraged investment where one get a loan to purchase it.
The best I can think of is use two separate Custom Assets to represent it.
- The Property Itself
- The Property Loan
The Property Itself → Simply create a buy transaction using “Price” as the cost you are paying for the property and “Unit” as 1. Then after that, update the EOD to the current value for the property.
The Property Loan (More complicated) → You need to start with a sell transaction (yes, short selling since you owe instead of own). The “Price” should be the loan amount and the “Unit” as 1.
Then as you slowly pay mortgage, you should create buy transaction with “Price” being the mortgage paid then the “Unit” should be 1/n (i.e. 1 divide by n where n is the number of times you will be paying mortgage. e.g. if you are paying the mortgage over 10 years and doing it monthly then, n will be 10 x 12 = 120)
If you are saying that the property is fully paid, you can use only “The Property Itself” using above method.
I know what I am saying might not be very clear. Feel free to ask questions if you have any.