I know this has been discussed. If no statements are made regarding RE, do we include it in asset base, or not?
I would say YES, BUT if they state that they dont want it considered/included in Portfolio/SAA then Exclude it. Most of hte time it is excluded.
I remember reading somewhere in the CFAI text that a personal residence cannot be included in the asset base because it is not investable. So should we just leave it out?
AnalyseThis Wrote: ------------------------------------------------------- > I remember reading somewhere in the CFAI text that > a personal residence cannot be included in the > asset base because it is not investable. So should > we just leave it out? Page #, volume please?
correct personal residences are not to be included. considered “legacy” assets.
CSK - you don’t include your primary residence in the asset base. i don’t have a page number just a memory. secondary properties that can be rented are included in asset bases.
Unless it is going to be sold in the near future, leave it out. If you are living in it, you can’t really invest it. You might be able to rent it out in which case you would have some additional income, but it wouldn’t be included in your asset base.
is there an example of a rentable property being included in the asset base for required return calculations?
it’s an individual preference I believe…
They mentioned it somewhere in SS4… don’t know the exact page number.
p 170 CFAI text