Overview of the Real Estate Reports

There are three different real estate analysis reports; one for residential property, one for rental property and one for refinances on any property.

Report Start Dates

All of the real estate reports start from the current year.

How to Print the Results for More Than 5 Years

If you want MasterPlan to print the analysis for more years, increase the number of Print Years in the Database | Preferences | Report Setup Tab. You may need to adjust the size of the font, or you may want to switch the page layout from Portrait to Landscape. If you do switch the page layout, you may need to adjust the number of lines per page.

Remember to set the number of years and number of lines per page back to their original settings before running other reports. (Number of Lines Per Page: 60)

Include What-if loans?

Before it calculates any of the real estate reports, MasterPlan asks if you want to include what-if loans. That means you can create the report with a hypothetical loan on the property to show the client what effect refinancing would have on the rate of return on the property.

If you have not entered any what-if loans, you would answer NO. If you have entered them and you wish them not to be included in the report, you would also answer NO.

As a general principle, you would click on Yes only if you have entered a new What-If loan and you would like to illustrate its effects.

Marginal Tax Rate

The marginal tax rates that appear on all of the real estate reports may come from one of two places.

If you have NOT previously run a financial projection overview for this client, MasterPlan has no way of knowing the combined marginal tax rate. It may display a suggested rate, but you can change it. The rate should be as accurate as possible, because this affects the tax write-offs and the conclusions of the report.

If you HAVE just run a financial projection overview for this client, the percentage appearing here will be the actual calculated marginal tax rate for the client. Also, if you have run the PROPOSED financial projection, the marginal tax rate that appears here is the new rate after all proposed investments and other strategies are implemented. This can be very helpful when trying to determine the impact of any proposed changes on the after-tax cost of home ownership.

Tip: You can lower the marginal tax rate to handle passive losses that can't be written off.

Loan

The loan balance shown in the real estate reports is the loan (or loans) that you have previously entered as securing this property.

These loans must be attached to the property through the field entitled "Offsetting Asset Name." To attach a loan, click on Portfolio | Assets | and click on the type of property you want to define.

After filling out the window, click on Actions | Save, or press Ctrl+S. This action logs the asset into the database. Now you can attach the loans by clicking on the Attach Liab button (or by clicking on Actions | Attach Liabilities). MasterPlan automatically fills out the Offsetting Asset Name.

CAUTION: You can run the real estate reports to illustrate proposed what-if loans and/or refinances. In this release, however, the Real Estate Reports always assume the loan starts in the current month--even if you have specified a future start year and month. This applies to the Refinance Report, the Residential Property Analysis, and the Rental Property Analysis reports, if you include the What-If loans. What-If loans that begin in the current month will be shown properly, future loans cannot as of this release.

Tip

If you are sure that you previously entered the mortgage, and the mortgage doesn't appear in the report, you may have entered a starting date for the mortgage that is greater than the projection date.

Or, the loan may be completely paid off by now. If you don't think it should be, then check to see if the monthly payment is greater than the properly amortized payment. To check this, click on Portfolio | Liabilities, and double-click on the loan. Type a 0 in the Monthly Payment field, and Tab off of it. MasterPlan will calculate the payment. Is this payment larger or smaller than the one that was previously there?