Residence part of investable base

[ataurr1987]

quick question,
In cases where it’s not explicity said- whats the rule for investable base- take for example 2009 Q1?
(Im thinking the fact that it’s under mortgage means that it is not available, but I assuming that- cant find anything in the CFA text)
Any help would be appreciated.
Thanks
AR

 

[Chuckrox8]

It’s never included in your investable asset base, but would count towards your personal balance sheet. For purposes of the exam, a house is an illquid asset. Of course there are always expections such as : client X will sell their primary residence on Jan 1 for $1,000,000 net of taxes…

 

[ataurr1987]

Thanks Chuck!

 

[Bilal]

never included, dont do the mistake i did last year

 

[ataurr1987]

thanks- just that usually it says it’s not included- so 2009 Q1 threw me off!