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Tutorial of Math

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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