Family home

What should be entered as a Family home

A property should be entered as a family home if it is an individual(s) principal place of residence (usually the one in which they are currently living). It is important to distinguish the family home from investment properties because it has a different tax status for associated mortgage repayments and for capital gains, if the property is sold. It is also important to identify the family home when estimating the Age Pension.
Family homes can be owned by an individual or a couple, but note that for tax purposes an individual can only own one family home at a time and Pathfinder will not solve if an individual owns multiple family homes at a single time (although it is okay if they sell a home and purchase a new one in the same year).
Do not enter under Family home:
- A property that used to be your home, but which you are now renting out (or vice versa) - You should enter this as an Investment Property and submit the case to the Optimo Financial SDS or see How to convert a family home to an investment property (or vice versa) - a workaround.

How to add a Family home

To add an existing Family Home, go to the Current situation step (top menu), then the Assets & Loans sub-step. And then click the +Add Assets button (on the left menu):
- Note that the value you enter in the 'Property value $' field is assumed to be the start-of-financial-year value (1 July), and property growth is applied from the start of the year.
- If you have a mortgage against the family home, it should be added as a Secured loan. If the loan is secured by the family home, but is funding another asset, the loan should be added under the asset that is being funded. For more see How to enter a loan that is secured by one asset and financing another asset (e.g. home equity loan).
To add a new family home (i.e. a family home that you would like to buy in the future):
- go to the Cash flows & Goals step (on the top menu), then the Review Assets & Loans sub-step.
- Then, click the Add new Assets & Loans button and choose the Buy a new family home option.
Note that it is assumed that family homes are bought and sold mid-financial-year (1 January), so the value you enter in the 'Property value $' field is assumed to be the mid-year value.

Modelling options for a Family home

Set a value for property growth	To set a value for property growth, on the 'Property value $' field, use the series builder field to edit the 'Index by' field. For more see How to use the series builder.
Pay off the mortgage early	See the Secured loan help page.
Sell an existing family home and buy a new one	Enter the details for the existing family home: go to the Current situation step (top menu), then the Assets & Loans sub-step. And then click the +Add Assets button (on the left menu). Set the sale details for the existing home: Go to the Cash flows & Goals step (top menu), then the Review Assets & Loans sub-step. Find the existing family home (in the Existing assets & loans section): For the Sale options field, choose 'If optimal' - when the new home is bought, Pathfinder will sell this one. If you want the Family home to be sold for the value you entered at the current situation step, then in the Change price indexation field, put '0' (zero). Add the new family home: Go to the Cash flows & Goals step (top menu), then the Review assets & loans sub-step. Click the Add new assets & loans button (at the end of the page) and choose the Buy a new family home option, then fill in the fields, including purchase year and, if required, add a mortgage. Note that it is assumed that family homes are bought and sold mid-financial-year (1 January), so the value you enter in the 'Property value $' field is assumed to be the mid-year value.
Stop renting and buy a new family home	Add the rent: Go to the Cash flows & Goals step (top menu), then the Cash flows sub-step. In the Expense section, enter rental payments with the Type=Rent (this will ensure the rental payments are stopped when the home is purchased) Add the new family home: Go to the Cash flows & Goals step (top menu), then the Review assets & loans sub-step. Click the Add new assets & loans button (at the end of the page) and choose the Buy a new family home option, then fill in the fields, including purchase year and, if required, a mortgage. In the analysis, in the year the home is bought: Rent will be paid for the first half of the year The home will be bought on the 1 January Mortgage repayments (if any) will be paid for the second half of the year
Sell an existing family home and start renting	Enter the details for the existing family home at the Current situation > Assets & Loans step. Enter the details for the rent: Go to Cash flows & Goals (top menu), then the Cash flows sub-step. In the Expense section, enter rental payments with the Type=Rent. This will ensure the rental payments are only applied when the home has been sold, so you can enter a rental expense for every year, and it will only be applied in the years the individual does not own a home. Enter the details to sell the home: Go to the Cash flows & Goals step (top menu) > Review assets & loans Find the Family home For the Sale options field, choose your preferred year. If you want the Family home to be sold for the value you entered at the current situation step, then in the Change price indexation field, put '0' (zero).
Additional data entry options	How to model downsizing contributions to superannuation (a workaround) How to convert a family home to an investment property (or vice versa) - a workaround How to enter a loan that is secured by one asset and financing another asset (e.g. home equity loan) How to estimate an affordable property purchase value

Results for Family Home

See Family Home results.

Related items

Other items related to Family home:

Secured loan
Investment Property
Expense (for more information about choosing the 'Rental income' type)

Strategy Development Service (SDS) and Background adjustment options

If the case includes complex analysis that you are not able to do in Pathfinder yourself, Optimo Support may be able to do some background adjustments to help you get the results you need. Depending on the complexity, this may be included as part of the standard support or additional charges may apply. For more details, please see Modelling outside the scope of Pathfinders' standard modelling.

Some examples of things that are outside the scope of Pathfinder's modelling and how Optimo support can help, are listed below:

Adjustment	Details	Information required by Optimo Support	Examples where additional charges may apply
First home super saver for saving for a family home.	The first home super saver is an initiative that lets individuals deposit their savings for their first home in their super funds. This is not built into Pathfinder, as it is not very popular, however if you can work out the amounts yourself, it’s possible to include them in Pathfinder.	If you need assistance for implementing the workaround in Pathfinder, then please contact Optimo support and give a general overview of what you would like to model.	If the workaround is going to take a lot of work or you would like Optimo Pathfinder to work out values for you, then additional charges may apply. For example, multiple deposits over multiple years for two individuals, and you would like us to work out the tax calculations for you.
Converting a your current family home to an investment property or vice versa (i.e. you currently live in the property and would like to rent it out)	A workaround is available here: How to convert a family home to an investment property (or vice versa) - a workaround
Other property options	See Investment Property \| Strategy-Development-Service-(SDS)-options
Borrowing options	See Secured loan \| Strategy-Development-Service-(SDS)-options