Join Early Retirement Today
View Poll Results: The value of my home is xx % of my net worth
I don't own a home 10 6.13%
Less than 10% 18 11.04%
10 to 20% 41 25.15%
21 to 30% 39 23.93%
31 to 45% 26 15.95%
46 to 60% 16 9.82%
61 to 80% 8 4.91%
81 to 100% 1 0.61%
101 to 150% 3 1.84%
151 to 200% 1 0.61%
More than 200% 0 0%
Voters: 163. You may not vote on this poll

Reply
 
Thread Tools Search this Thread Display Modes
Re: Home value as a percentage of net worth
Old 11-29-2006, 10:35 PM   #21
Full time employment: Posting here.
 
Join Date: Feb 2004
Location: Okanagan Valley
Posts: 805
Re: Home value as a percentage of net worth

I won't vote because it is stupid to compare apples and oranges. The ONLY value you have in your home is your equity.
__________________

__________________
AltaRed is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Home value as a percentage of net worth
Old 11-29-2006, 10:40 PM   #22
Thinks s/he gets paid by the post
 
Join Date: Mar 2006
Location: Houston
Posts: 2,155
Re: Home value as a percentage of net worth

Quote:
Originally Posted by AltaRed
I won't vote because it is stupid to compare apples and oranges. The ONLY value you have in your home is your equity.
So sorry my poll did not meet your intellectual criteria.
__________________

__________________
Sam is offline   Reply With Quote
Re: Home value as a percentage of net worth
Old 11-30-2006, 07:41 AM   #23
Thinks s/he gets paid by the post
retire@40's Avatar
 
Join Date: Feb 2004
Posts: 2,670
Re: Home value as a percentage of net worth

Quote:
Originally Posted by AltaRed
I won't vote because it is stupid to compare apples and oranges. The ONLY value you have in your home is your equity.
Why is he comparing apples to oranges? He's asking what percentage of home equity makes up your total net worth. Simple and valid question.

People are messing this calculation up by not using the correct divisor. Using the formula the OP gave, how could home equity ever be greater than 100% of net worth?

edit: I went back to reread the original question. He did ask for market value instead of equity, so he's missing the liability component to the equation, if there is one.
__________________
No man is free who is not master of himself. --- Epictetus
Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo
retire@40 is offline   Reply With Quote
Re: Home value as a percentage of net worth
Old 11-30-2006, 08:11 AM   #24
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 4,005
Re: Home value as a percentage of net worth

Quote:
Originally Posted by retire@40
Why is he comparing apples to oranges? He's asking what percentage of home equity makes up your total net worth. Simple and valid question.

People are messing this calculation up by not using the correct divisor. Using the formula the OP gave, how could home equity ever be greater than 100% of net worth?
OP is asking for market value of home divided by net worth. My home is worth $150k (fair market value), but I only have $40k in equity. I use $150k as the numerator, and my net worth as the denominator.
__________________
justin is offline   Reply With Quote
Re: Home value as a percentage of net worth
Old 11-30-2006, 10:25 AM   #25
Thinks s/he gets paid by the post
 
Join Date: Mar 2006
Location: Houston
Posts: 2,155
Re: Home value as a percentage of net worth

Thanks Justin. I thought the question was simple too. Anyway, I'm in the 21-30%. But it'll be in the 10-20% range when I RE a few years from now.

Thank you all for participating.
__________________
Sam is offline   Reply With Quote
Re: Home value as a percentage of net worth
Old 11-30-2006, 02:10 PM   #26
Full time employment: Posting here.
Alex's Avatar
 
Join Date: May 2006
Posts: 696
Re: Home value as a percentage of net worth

I count my home equity in my TOTAL net worth calculations because I plan on selling the home and moving to a lower cost area when I retire. I base my valuation on the most recent appraisal (about a year old now) less estimated transaction costs. I haven't really adjusted the valuation up or down simply because I don't track it that closely. Once I get closer to FIRE I will do a more thorough evaluation.

One thing that I do track very closely is what I call my LIQUID net worth. Home equity is not part of that equation even though I do have an untapped credit line of up to 200K.
__________________
Oh, you hate your job? Why didn't you say so? There's a support group for that. It's called EVERYBODY, and they meet at the bar.--Drew Carey
Alex is offline   Reply With Quote
Re: Home value as a percentage of net worth
Old 11-30-2006, 03:37 PM   #27
Dryer sheet wannabe
 
Join Date: Nov 2006
Posts: 17
Re: Home value as a percentage of net worth

Quote:
Originally Posted by dmpi
You must be young. Most of us here are old farts.
Not that young! I'm 36. Still not an old fart, though!

I do think I'm a bit behind the curve compared to most on this board. But I'm working on that problem...
__________________
furpants is offline   Reply With Quote
Re: Home value as a percentage of net worth
Old 11-30-2006, 04:11 PM   #28
Full time employment: Posting here.
 
Join Date: Apr 2004
Posts: 802
Re: Home value as a percentage of net worth

~33%.

Like most Canadian retirees, the mortgage has been long gone.
__________________
Zipper is offline   Reply With Quote
Re: Home value as a percentage of net worth
Old 11-30-2006, 11:14 PM   #29
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 1,152
Re: Home value as a percentage of net worth

I will be FIREing without ever having owned a home. And I probably will not purchase one for at least several years after FIRE.

Stand aside! It's Kramer, parachuting in, naked, with only an ATM card
__________________
kramer is offline   Reply With Quote
Re: Home value as a percentage of net worth
Old 11-30-2006, 11:26 PM   #30
Full time employment: Posting here.
 
Join Date: Feb 2004
Location: Okanagan Valley
Posts: 805
Re: Home value as a percentage of net worth

Quote:
Originally Posted by retire@40
Why is he comparing apples to oranges? He's asking what percentage of home equity makes up your total net worth. Simple and valid question.
It SHOULD be asking for equity, but it is asking for market value. That is meaningless in the same ratio as net worth.
__________________
AltaRed is offline   Reply With Quote
Re: Home value as a percentage of net worth
Old 12-01-2006, 08:19 AM   #31
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 4,005
Re: Home value as a percentage of net worth

Quote:
Originally Posted by AltaRed
It SHOULD be asking for equity, but it is asking for market value. That is meaningless in the same ratio as net worth.
Maybe OP wants to know the actual value. Most housing expenses are strongly tied to value of the house (taxes, insurance, maintenance, interest charges on a mortgage, etc). Perhaps OP wants to see the correlation between high value houses and high net worth individuals.
__________________
justin is offline   Reply With Quote
Re: Home value as a percentage of net worth
Old 12-01-2006, 09:50 AM   #32
Recycles dryer sheets
 
Join Date: Dec 2002
Posts: 129
Re: Home value as a percentage of net worth

Exactly justin.

The "new poll" button is on the upper right. Instead of guessing at the motivations of OP and telling him what his poll should be just click that and start your own if the data you're interested in differs.
__________________
WRBT is offline   Reply With Quote
Re: Home value as a percentage of net worth
Old 12-01-2006, 10:41 AM   #33
Thinks s/he gets paid by the post
retire@40's Avatar
 
Join Date: Feb 2004
Posts: 2,670
Re: Home value as a percentage of net worth

Quote:
Originally Posted by AltaRed
It SHOULD be asking for equity, but it is asking for market value. That is meaningless in the same ratio as net worth.
Yup, you're right. I read the original question too fast and assumed it was equity. FMV only works if there is no liability against it. At that point FMV = equity.
__________________
No man is free who is not master of himself. --- Epictetus
Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo
retire@40 is offline   Reply With Quote
Re: Home value as a percentage of net worth
Old 12-02-2006, 04:55 AM   #34
Thinks s/he gets paid by the post
 
Join Date: Mar 2006
Location: Houston
Posts: 2,155
Re: Home value as a percentage of net worth

Quote:
Originally Posted by AltaRed
I won't vote because it is stupid to compare apples and oranges. The ONLY value you have in your home is your equity.
Quote:
Originally Posted by AltaRed
It SHOULD be asking for equity, but it is asking for market value. That is meaningless in the same ratio as net worth.
My question was first stupid, then meaningless. Now you tell me what I should be asking!

If it was stupid and meaningless, why are you still around inputting your thought? Is it possible that you like to be around stupid and meaningless people so you'd feel comfortable? Well, I don't like to be around or dealing with people I don't like, and that's you. If you did not know why the question was asked that way, the best thing was to inquire as opposed to jumping to the conclusion. You might also want to stop flattering yourself. In spite of all the strong, offensive words you use, you don't sound at all intelligent to me.
__________________
Sam is offline   Reply With Quote
Re: Home value as a percentage of net worth
Old 12-02-2006, 07:23 AM   #35
Recycles dryer sheets
 
Join Date: Jan 2006
Posts: 162
Re: Home value as a percentage of net worth

The poll results seem bogus...the large majority of posters have net worth 3 to 10 times their house value?
__________________
Seems to me that the corporation's race to the top is resulting in a race to the bottom for the employee's quality of life. FIRE can't come soon enough.
kjpliny is offline   Reply With Quote
Re: Home value as a percentage of net worth
Old 12-02-2006, 07:33 AM   #36
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 1,318
Re: Home value as a percentage of net worth

Quote:
Originally Posted by kjpliny
The poll results seem bogus...the large majority of posters have net worth 3 to 10 times their house value?
And why do you find it bogus? If your house is worth 200K your net worth could be 600K to 2MM. I don't find this to be unusual for ER people.
__________________
Corporateburnout is offline   Reply With Quote
Re: Home value as a percentage of net worth
Old 12-02-2006, 07:41 AM   #37
Recycles dryer sheets
 
Join Date: Jan 2006
Posts: 162
Re: Home value as a percentage of net worth

Quote:
Originally Posted by Corporateburnout
And why do you find it bogus? If your house is worth 200K your net worth could be 600K to 2MM. I don't find this to be unusual for ER people.
Guess I'm seeing things from the northeast perspective where houses are $400-500k with retirement still many years away. :
__________________
Seems to me that the corporation's race to the top is resulting in a race to the bottom for the employee's quality of life. FIRE can't come soon enough.
kjpliny is offline   Reply With Quote
Re: Home value as a percentage of net worth
Old 12-02-2006, 07:49 AM   #38
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,408
Re: Home value as a percentage of net worth

Midwest, going on 14th yr of ER - or at 63 maybe regular retirement but still young at heart.

69k mortgage on 85k house, 1.2 mil net worth tossing in junk - house, timberland, vehicles, etc.

Heh heh heh - not on any coast nor waterfront.
__________________
unclemick is offline   Reply With Quote
Re: Home value as a percentage of net worth
Old 12-02-2006, 07:49 AM   #39
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,077
Re: Home value as a percentage of net worth

Quote:
Originally Posted by kjpliny
Guess I'm seeing things from the northeast perspective where houses are $400-500k with retirement still many years away. :
Not all of us suffer from coastalhouseitus.

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Re: Home value as a percentage of net worth
Old 12-02-2006, 07:59 AM   #40
Thinks s/he gets paid by the post
Leonidas's Avatar
 
Join Date: May 2006
Location: Where the stars at night are big and bright
Posts: 2,847
Re: Home value as a percentage of net worth

Quote:
Originally Posted by kjpliny
The poll results seem bogus...the large majority of posters have net worth 3 to 10 times their house value?
Quote:
Originally Posted by kjpliny
Guess I'm seeing things from the northeast perspective where houses are $400-500k with retirement still many years away. :
Yup, quite a number of us live in places where fewer dollars buys a lot more house. My NW is 16 times my home value. 3100 sf sitting on a small lake in one of the top "best places to live" (according to Money Magazine anyway).
__________________

__________________
There is no pleasure in having nothing to do; the fun is having lots to do and not doing it. - Andrew Jackson
Leonidas is offline   Reply With Quote
Reply

Tags
net worth


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Poll: net worth to lifetime earnings firewhen FIRE and Money 9 01-08-2007 08:12 PM
Home to net worth %?? cardude Life after FIRE 56 09-10-2006 03:47 AM
Value of a Pension (Net Worth Additive) OAG Other topics 22 08-21-2006 12:03 PM
Net Worth By Retired/Working/SemiRetired - Marital/SO Status Survey Danny FIRE and Money 10 11-23-2005 01:32 PM
Updated Net Worth Figures - How Do You Rate? intercst Other topics 0 01-22-2003 07:00 PM

 

 
All times are GMT -6. The time now is 06:00 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.