Selling a house in Microsoft Money
In Article 460
, the basic mechanism for tracking a house purchase in Microsoft Money is described. An additional task would be to sell a house, which reverses some of the methods in that article.
This article shows how to do it. It does not include a mechanism to buy another from the proceeds - this is in Article 462
The aim is again to achieve a net-worth neutral set of transactions - you do not gain any money here, you merely release the equity in the house in the form of cash.
Closing the loan down, and selling the asset is a relatively simple procedure. First, you need to zero-out the loan, and secondly transfer out the equity you have in the house.
This is simply two transactions.
- Create a principal transfer transaction from the Asset account (the house) to the loan. This is the same type of transaction as in Article 136.
- You will then have a residual value left in the asset account. Transfer the full amount of this asset into whichever bank account you receive the proceeds of the sale in.
For example, on a house sale of $200k and an outstanding loan of $150k.
There will be the following transactions:
- Transfer from the asset to the loan, the full amount of the loan balance (150k)
- Transfer of the remaining equity in the asset to your savings account (50k)
- Closure of the loan account
- Closure of the Asset account
Keywords: Mortgage, Sell, House, Redeem