Water Leak Impact: Home Value Calculator

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u/Monopoly · Joined Oct 2024

Explore how a major water leak impacts your home’s value, repair costs, and asset growth, factoring in opportunity costs and lost use during repairs.

Last update Oct 2024
  • Scenario 1: No Leak, Steady Market Growth
  • Scenario 2: Leak Delays Value/Asset Growth
  • Which One Is Higher (%)

After a leak, you'll incur significant repair costs and lost use, impacting your market investments. The property's value will gradually recover post-repair. This chart illustrates the long-term financial impact on your Net Worth.

# Years from Now

Try your numbers:

Estimated market value of the home before the leak.

A =

Estimated percentage of the home affected by the leak (e.g., 5%, 10%, 20%).

B =

Estimated costs to repair the damage.

C =

Period of time until the repairs are completed.

D =

Estimated monthly cost of rent or alternative accommodation while the home is uninhabitable due to repairs.

E =

A percentage estimate of how much the home's value decreases after repairs, due to the home's damage history.

F =

How long it will take for the home to regain its value after the stigma or repair issues.

G =

The expected average change in home value in the market, per year.

H =
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Time Value Assumptions

Heads Up!

If you're using Cost Basis (cb) for calculating capital gains:

Please be aware that very few countries currently use inflation-indexed cost basis. Double-check your local tax rules before publishing.

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How is Cash Value calculated?

This algorithm simulates a scenario without water leaks, assuming steady market growth. It calculates the property value based on consistent appreciation rates, demonstrating how a home can increase in value over time without disruptions.

Decisions / Expectations

(Expressions are evaluated at Year 0 only.)

I =

Calculations

(Expressions are evaluated at every year.)

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