There is an overview of this entire set of alternative profiles for this family. The guide below illustrates how to read one of these reports.
Sell Home Move New State
This alternative plan can be found in the family profile Sample Married Family. It introduces a change in the primary home to a non-tax state. This alternative plan should be compared to the base plan.
The image below shows the simple change that was made in the housing area set up. After you edit the home and choose "change of home" Texas was selected for the new state and the year 2027 was selected for the year of change. Note below, that the purchase price is lower than the market value of the existing home (i.e., this is downsizing), property taxes are lower, insurance is lower, and since this is a no-mortgage purchase, the down payment is 100%.
In the image directly below, we can observe that the change in the present value of the lifetime discretionary spending is $84,691. This change translates to an annual advantage of $2,781 more each year of discretionary spending for the life of the plan. And finally, the "Lifetime Changes" shows a breakout of the lifetime present value of what went up and what went down. The bottom line, in other words, is the $2,781 annual advantage to downsizing the home and moving to Texas.
The housing report below shows that this downsize results in a net purchase of a negative $16,000 (i.e., a net gain of $16,000). This $16,000 will end up in regular assets (see Saving and Withdrawal report). It's unlikely one would see $16,600 saved for that year because some or all of this could be used to help sustain the smooth discretionary spending for that year.
Recall that the market value of the existing home is $390,000. The purchase price of the new home in Texas is $350,000. There is a 100% down payment, that is, $350,000. The net takeaway from this exchange, $16,600, is calculated this way:
390,000 - 6% realtor commission = 366,600
386,600 - 350,000 = 16,600
Because there is also a vacation home in the plan, the total equity for both primary and vacation home is, after the change of home, $600,000.
