Iress ContributorWhen downsizing a property to free up and invest capital, how can we reflect the newly purchased property as fully paid off using the proceeds from the sale of the original property, ensuring no liability carries over into the next year?
E.g. Sell property for $1,780,000 and use this cash to purchase new property for $1,200,000, resulting in zero liability in the following year.
Iress ContributorHi alison.isherwood ,
Sorry for the delay in getting back to you.
1. For the property being sold,set the Linked Asset on Disposal to Cash. Also, model the purchase of the second property in the same period.
2. Now do a once-off repayment of the Liability in the same period the property is sold:
That will set the timing of all the transactions at start of period, so your Visualise Net Assets chart will show the loan fully repaid at the time of the property sale/liability repayment/new property purchase.
Iress ContributorHi alison.isherwood
I see you are using our NZ Xtools+. I'll come back to this one next week.
