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View Poll Results: The value of my home is xx % of my net worth
I don't own a home 10 6.10%
Less than 10% 18 10.98%
10 to 20% 42 25.61%
21 to 30% 39 23.78%
31 to 45% 26 15.85%
46 to 60% 16 9.76%
61 to 80% 8 4.88%
81 to 100% 1 0.61%
101 to 150% 3 1.83%
151 to 200% 1 0.61%
More than 200% 0 0%
Voters: 164. You may not vote on this poll

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Re: Home value as a percentage of net worth
Old 11-29-2006, 09:35 PM   #21
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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.
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Re: Home value as a percentage of net worth
Old 11-29-2006, 09:40 PM   #22
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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.
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Re: Home value as a percentage of net worth
Old 11-30-2006, 06:41 AM   #23
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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.
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Re: Home value as a percentage of net worth
Old 11-30-2006, 07:11 AM   #24
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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.
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Re: Home value as a percentage of net worth
Old 11-30-2006, 09:25 AM   #25
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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.
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Re: Home value as a percentage of net worth
Old 11-30-2006, 01:10 PM   #26
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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.
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Re: Home value as a percentage of net worth
Old 11-30-2006, 02:37 PM   #27
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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...
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Re: Home value as a percentage of net worth
Old 11-30-2006, 03:11 PM   #28
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Re: Home value as a percentage of net worth

~33%.

Like most Canadian retirees, the mortgage has been long gone.
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Re: Home value as a percentage of net worth
Old 11-30-2006, 10:14 PM   #29
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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.

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Re: Home value as a percentage of net worth
Old 11-30-2006, 10:26 PM   #30
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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.
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Re: Home value as a percentage of net worth
Old 12-01-2006, 07:19 AM   #31
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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.
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Re: Home value as a percentage of net worth
Old 12-01-2006, 08:50 AM   #32
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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.
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Re: Home value as a percentage of net worth
Old 12-01-2006, 09:41 AM   #33
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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.
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Re: Home value as a percentage of net worth
Old 12-02-2006, 03:55 AM   #34
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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.
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Re: Home value as a percentage of net worth
Old 12-02-2006, 06:23 AM   #35
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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?
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Re: Home value as a percentage of net worth
Old 12-02-2006, 06:33 AM   #36
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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.
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Re: Home value as a percentage of net worth
Old 12-02-2006, 06:41 AM   #37
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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. :
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Re: Home value as a percentage of net worth
Old 12-02-2006, 06:49 AM   #38
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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.
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Re: Home value as a percentage of net worth
Old 12-02-2006, 06:49 AM   #39
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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.

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Re: Home value as a percentage of net worth
Old 12-02-2006, 06:59 AM   #40
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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).
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