ShareOwn.Info: Housing Affordability and Lifetime Wealth Simulator

Abstract

The purpose of the simulator is to assess your lifetime wealth under different home ownership scenarios (shared ownership with the option to purchase additional shares over time and full ownership with a traditional mortgage). Based on the inputs each household can enter and the underlying assumptions of the simulation, the simulator estimates when (at what age or in how many years) you can afford traditional homeownership and shared ownership, whether and when you can staircase to full ownership, when you would be able to repay your mortgage, and what would be the accumulated housing wealth and liquid wealth (i.e., wealth held in your savings account) over time until retirement age. Future wealth is adjusted for inflation and the results show the present value of housing and liquid wealth.