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Vessel Tutorial
  • Pages
    • Introduction to Vessel
    • Tutorial of Math
      • Equity Sharing Percentage
      • icon picker
        Interim Home Value
      • Annual Income & Yield
      • Conversion to Equity
      • Owner-Caused Value Changes
      • Financial Model
      • Yield Percentage
    • Other Aspects
      • Legal Structure of Investments
      • Contract Length
      • Method of Securing Investment
      • What if Vessel fails?
      • Reselling Investments
      • Vessel's Fees
      • Benefits
      • Investor requirements
    • Comparison to Alternatives
      • For Homeowners
        • Second Mortgages
        • Selling Property
        • Point, Unison, Noah, etc.
        • Reverse Mortgages
      • For Investors
        • REITs
        • Real Estate Crowfunding
        • Buying Investment Property
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Interim Home Value
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Interim Home Value

To calculate
income
⁠
and
conversion to additional equity sharing rights
⁠
(the next two concepts), we need an estimate of the home value at each year until the property is sold. Annual appraisals would be too expensive, so we estimate subsequent years' home value as the original appraised value, adjusted upwards or downwards in proportion to the regional home price index's change to arrive at the "interim home value" at any give year.
Next Topic:
Annual Income
⁠
⁠
Adjust the sliders below to try it out.
Input:
Initial Appraised Value
$
0000000
500000
⁠
⁠
Home Price Index at investment date (year 0)
⁠
000
200
⁠
⁠
Home price Index at year n:
⁠
000
220
⁠
⁠
Output:
Interim Home Value at year n.
=$
500000
⁠
* (
220
⁠
/
200
⁠
)
=$
500000
⁠
*
1.1
⁠
⁠
=$
550000
⁠
⁠
Next Topic:
Annual Income
⁠
⁠

More Info about Interim Home Value

Interim Property Value at year n = Initial Appraised Value * (HPI at year n / HPI at time of appraisal).

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