Quick question to all of you out there that track your finances in Quicken, MS Money, or something similar… Do you keep track of your home’s value in your software package of choice? Or do you track it separate from the rest of your finances?
I’ve always been a big proponent of tracking net investable assets as opposed to actual net worth, but I’ve recently been re-thinking this. The main reason for this change of heart is that we’re currently renovating our house to the tune of roughly $50k. Given that our home’s value will be increasing as a result of these renovations, it seems odd to treat that money as if it simply disappeared.
I see that Quicken has an option for tracking homes and other assets, but I’ve never messed around with it. In short, I’m thinking of going back and creating an account for our first house, and populating it with values ranging from the initial purchase price to the eventual sale price (I’ll basically just interpolate the values in between). For our current house, I’d probably play it somewhat conservative and just track the assessed value, which tends to lag behind market values in our area.
Anyway, I just wanted to get your thoughts on how best to handle this.