Should I Move or Stay Put? Understand the financial impact in 10 years if you move from your current home, into a new home. Will my equity grow faster? Can I recover from all the transaction costs? How will my monthly bills change? Instructions: Fill in the 'Yellow' fields, then review the 'Summary'. Option 1: Stay put in your home Current Home Value Information Market Value (Expected Sale Price) Mortgage Balance Annual property value growth rate* *US & Canada 20+ year growth ranges from 2-6% depending on your location. Current Mortgage Financing Mortgage Rate Amortization Period (yrs) Current Annual Expenses Property Taxes Utilities Management Expenses Basic Maintenance & Repair Estimate Home Insurance Other Annual Expenses One-time Costs if you choose to Stay Major Repairs Renovations Realtor Fees if you Sell Realtor Commission % when Selling* *The realtor fees are paid out from the proceeds of your sale. Therefore, the fees increase your new mortgage. Option 2: Move to a new home Future Home - Purchase Information Expected Purchase Price Additional Down Payment Mortgage Insurance (if required) Expected Mortgage Financing Mortgage Rate Amortization Period (yrs) Transaction Costs involved with Moving Legal & Regulatory fees Moving Expenses Home Inspection Land / Property Transfer Tax* *Check your local government guidelines. One-time Repair and Renovation Costs Major Repairs Renovations Property value growth rate (new home) Future Annual Expense Estimates Assumptions that apply to both scenarios Annual Growth Rates Rate Property taxes Utilities Management Maintenance & Repair Inflation Rate Investment Return rate / Discount rate
Move or Stay Cost-Benefit Summary Key Points 1) 2) "" 1. Equity Summary at Year 10 Expenses and Growth Areas Option 1 Option 2 Difference if you Move Stay Put Move Starting Equity $0 Less Expenses Realtor Fees Moving Transaction Costs Repairs and Renovations Recurring Expenses Mortgage Interest Plus Equity Growth Property Appreciation Mortgage Principal Net Equity at Year 10 Full details are available in the 'Detailed Results' section. This business case serves as a starting point for your analysis. You should carefully evaluate your assumptions and current market conditions. Review this with your financial advisor or accountant to help you make a decision. Get a Free Copy and Join the Newsletter! Enter your e-mail address below and click the green 'Submit' button at the bottom banner. www.BusinessCaseGuy.com | Theory Is Good, Numbers Are Better. Info@BusinessCaseGuy.com
Business case impacts when deciding to Stay or Move Each numbered item has the details expanded further below. This analysis provides directional guidance. You should review these decisions in detail with your financial advisor or accountant. Key points about your business case 1 "" 2 "" 3 "" 4 "" 5 "" 1 Estimated Transaction Costs related to your Move Moving Expenses Upfront $ Land Transfer Tax This amount will be added to your new mortgage. Total 2 Recurring Annual Cash Flow Change if you Move (First year estimate) Recurring Cash Flow Items Stay $ Move $ Change $ Mortgage Principal Mortgage Interest Total 3 STAY - Personal Equity change over 10 years Change in Personal Equity if you Stay Stay @ Year 1 @ Year 5 @ Year 10 Home Value Mortgage Balance Home Equity Major Repairs and Renovations Cumulative Expenses for Staying Net Personal Equity if you Stay 4 MOVE - Personal Equity change over 10 years Change in Personal Equity if you Move @Move Date @ Year 1 @ Year 5 @ Year 10 New Home Value Realtor Fees (added to Mortgage) Mortgage Balance Home Equity Changes if you Move Cumulative Expenses if you Move Major Repairs and Renovations Net Personal Equity if you Move 5 Return on Investment (Difference in ROI if you Move vs. Stay) Annualized ROI for Moving @Yr 1 @Yr 5 @Yr 10 Straight Line Get your personalized copy of this Business Case Enter your e-mail address in the 'Summary' section. www.BusinessCaseGuy.com | Theory is good, Numbers are better.