Desk Mortgages

The premise behind desk mortgages is important, because you may not be willing to abide by this singular rule – if a student takes a mortgage out on their desk, they should not be able to be moved until they “sell” the desk or they are foreclosed on for non-payment. Under few other circumstances should they be moved, and if you do so, you will basically be eminent domaining them out of their property.

Outside of retirement accounts, most Americans have a majority of their net worth tied up in the amount of equity they have in their homes.  This equity is born out of the natural tendency of homes to increase in value over time—barring the past several years—and other factors that can have either a positive or negative impact on home prices.  The real estate agency page gives you the ability to institute various factors to both increase and decrease property values throughout the school year.  We will discuss each of these here.

The program averages home sales in your classroom and gives a value to the annual average at which apartment rent is running.  It will give you a visual on whether you are charging too much for rent in comparison to the average home price/desk purchase.

The following pane (there is another just like this one if you scroll a bit further to the right that covers pay periods 13 through 22) gives you an accounting of how much purchasing power a student has during any given pay period once taxes and monthly bills have been subtracted from the overall total funds availability.  The purpose of these two panes is to give you the best information possible for you to make decisions in regards to the “Real Estate Price Fluctuations Per Pay Period” pane.

Purchasing power based on dollars available from attendance + assignments.

I wavered as to whether to have PaySoft automatically inflate or deflate home prices based on available purchasing power on criteria of my choosing but decided it took too much control of your classroom out of your hands.  Therefore, I provided the following controls for you to determine how much, if at all, prices for homes should increase or decrease in value based on purchasing power from each respective pay period.  As an example of how this function works, if a student purchases their desk at the beginning of the year for $5500 and the overall purchasing power of the class as a whole (as determined by the Cost of Living calculator) sits at 15% for that respective pay period, then you may decide that at such a percentage of net income leftover, home prices should increase by 7% (the methodology to determine such fluctuations is entirely up to you).  To accomplish this, you simply click on the Pay Periods 1 and 2 cell to input these values and the new home values are calculated for you under the “Current Value” column to the far right of the Real Estate Agency page [which puts the new value of the desk at $5885.00].

The other way to adjust desk values is through the use of the “Home Location Factors” panel.  Just as with the actual housing market, location means everything for the future value of a personal dwelling.  Live close to a good school and a low crime area and you can expect your home value to rise during the timeframe in which you live there.  Live near an industrial site and you may hope to just break even when the time comes for you to sell.  This lesson needs to come into play in your classroom as well, and this is where you set these factors and the overall impact they will have on home prices during the school year.

Desk Value Factors

Examples that I listed, and criteria that you may or may not choose to use, as things that could impact home prices are things like:

  • Is the student desk near the teacher’s desk?
  • Is the desk located near an air conditioner?
  • Is it in the front or back of class?
  • Is the desk located near an A student?
  • Is the class an honors class?

These are but a few examples of different criteria you may use.  Once you have listed various price adjusting factors, you then input the percentage of price adjustment in the column immediately to the right before moving to the far right column to enter whether that percentage will be an increase or decrease in price. Now these factors do not all go into effect for every single desk in the class.  Some criteria, such as is the class an honors class, could certainly be used as a general price adjustment, but many of the factors you will use will vary from class to class.  Therefore, once you have entered all necessary information into this window you can move over to individual desks that have already been purchased and begin entering in individualized price adjustment factors to really at a personal touch to the home pricing in your class.

For the example above, I assigned a 5% increase to any desk that is located near the teacher’s desk.  Once this is selected from the drop down menu of one of the “Price Influencing Factor” columns, the calculator automatically adds the preset increase/decrease and adds that into the valuation of the desk price.  In the case of the above picture, the 5% increase is added to the 7% pay period increase we set earlier based on a 15% purchasing power from the first two pay periods to arrive at a 12% overall increase in home valuation, giving the student a net equity in their home of $660 (Current Value: $6160 – Original Purchase Price: $5500 = $660 Equity).