Thank you for your interesting reply. Clearly you have a better handle
on this than I. Hopefully, as you suggest, this question will stimulate
more thought from the group.


Dick Watson wrote:
- quote -

This is a great question for the newsgroup--I don't recall it having come up
before. I suspect it will come up more in the future.

My basic thought is to setup a Liability Account and make the payments from
the lender transfers from the liability to a cash account. The liability
grows. Maybe you even add the accumulating unpaid interest to the liability
account? (Since it defers for tax purposes, maybe this isn't the smartest
choice? But if you don't capture it, you are exaggerating your net worth...
Hmm...) The Asset account for the house--assuming you have one from when you
were in the aqusitive phase--just stays there. It's still your asset. And its
net value is still determined by the market not by this "encumbrance" on your
selling it. And you still want to track its increases (hopefully) in vlaue
since they are how you are going to payoff that looming interest bill at some
point. In the meantime, the growing liability offsets the asset's value and
your net worth progressively declines.

But I've only thought about it for five minutes here. Let's see what
thoughts the others come up with here.

"Redtarga" wrote:

- quote -

All I've managed so far is to just setup an income account based on
projected figures for my home, but I don't know how to have this
reflected in net value of the home.

Thank you!