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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 6.13%
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

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Home value as a percentage of net worth
Old 11-29-2006, 12:53 PM   #1
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Home value as a percentage of net worth

The market value (not the equity) as a percentage of your net worth today.

Example:
Home value: 250K (equity in home 100K)
Net worth (including equity in home): 500K
Answer = 250/500 or 50%

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Re: Home value as a percentage of net worth
Old 11-29-2006, 12:55 PM   #2
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Re: Home value as a percentage of net worth

~34%
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Re: Home value as a percentage of net worth
Old 11-29-2006, 01:11 PM   #3
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Re: Home value as a percentage of net worth

if u have two homes do u add them?
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Re: Home value as a percentage of net worth
Old 11-29-2006, 01:16 PM   #4
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Re: Home value as a percentage of net worth

If you actually live in both homes, I would say yes.
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Re: Home value as a percentage of net worth
Old 11-29-2006, 01:25 PM   #5
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Re: Home value as a percentage of net worth

voted 101% to 150%. Age is a huge factor to this question. For most 20-somethings it is going to be 100%+ of net worth. For the 50-something FIRE type, it'll be a rather small percentage in general.
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Re: Home value as a percentage of net worth
Old 11-29-2006, 01:44 PM   #6
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Re: Home value as a percentage of net worth

I do not usually include the value of our home in any of my calculations as I really do not know the true value of it (until it is sold) and I have no plans on selling it any time soon. Also, even though by defination the home is an asset of mine and should be part of the net worth #, I would only have to buy another place to live at probably a similar amount of $ so what's the use?

It's value probably less than 10%~my guess.
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Re: Home value as a percentage of net worth
Old 11-29-2006, 04:18 PM   #7
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Re: Home value as a percentage of net worth

Quote:
Originally Posted by mickeyd
I do not usually include the value of our home in any of my calculations as I really do not know the true value of it (until it is sold) and I have no plans on selling it any time soon. Also, even though by defination the home is an asset of mine and should be part of the net worth #, I would only have to buy another place to live at probably a similar amount of $ so what's the use?
First, it is because (as you said) your home is, by definition, an asset, which must be included in your net worth calculation. Thus, since we all use the same definition, it is a constant barometer. The definition of net worth is agnostic as to whether you can live the asset.

Second, it is not true that you would have to buy another place. There are many people who rent or lease.
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Re: Home value as a percentage of net worth
Old 11-29-2006, 04:33 PM   #8
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Re: Home value as a percentage of net worth

Quote:
Originally Posted by JustCurious
First, it is because (as you said) your home is, by definition, an asset, which must be included in your net worth calculation. Thus, since we all use the same definition, it is a constant barometer. The definition of net worth is agnostic as to whether you can live the asset.

Second, it is not true that you would have to buy another place. There are many people who rent or lease.
Your post is a fusion of right and wrong. True, a house is always an asset and it is always part of net worth by definition. But, in calculating net worth for purposes of determining a SWR from which you will draw for living expenses, you may or may not include your home in your calculation, depending on whether or not you will use any proceeds from the house for living expenses.

If you plan on living in your house until they day you die and will not do a reverse mortgage, sell it, rent it, etc., then your house is a sunk cost, no different than the pencil on your desk.
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Re: Home value as a percentage of net worth
Old 11-29-2006, 05:39 PM   #9
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Re: Home value as a percentage of net worth

Quote:
Originally Posted by retire@40
Your post is a fusion of right and wrong. True, a house is always an asset and it is always part of net worth by definition. But, in calculating net worth for purposes of determining a SWR from which you will draw for living expenses, you may or may not include your home in your calculation, depending on whether or not you will use any proceeds from the house for living expenses.

If you plan on living in your house until they day you die and will not do a reverse mortgage, sell it, rent it, etc., then your house is a sunk cost, no different than the pencil on your desk.
The poll is asking for the percentage of your house value as part of your net worth. It is not asking whether you use it to determine your SWR for living expenses.
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Re: Home value as a percentage of net worth
Old 11-29-2006, 06:06 PM   #10
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Re: Home value as a percentage of net worth

It depends for what purpose and why you are figuring your net worth .For estate tax purposes i would count it,for a loan a bank would count it.
I prefer not to count a personal residence in net worth for retirement purposes unless i was ready to liquidate it.If i was taking a loan against it i would subtract out the loan though..I wouldnt count it anymore than i would subtract off my net worth my future rent payments if i didnt own a house .A home is a consumption item until the day comes that your no longer consuming it.I have some origonal art work on my walls which i love.I dont count that either .Maybe one day ill want to sell them,at that point i would count it,same goes for jewelry.
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Re: Home value as a percentage of net worth
Old 11-29-2006, 06:09 PM   #11
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Re: Home value as a percentage of net worth

Arg! I chose the wrong answer. I chose 31 to 45% when it is actually 10 to 20%.
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Re: Home value as a percentage of net worth
Old 11-29-2006, 06:10 PM   #12
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Re: Home value as a percentage of net worth

8.5%

Heh heh heh
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Re: Home value as a percentage of net worth
Old 11-29-2006, 06:12 PM   #13
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Re: Home value as a percentage of net worth

I love the fact that even thought the poll's parameters were quite straightforward, it also led to a very good but compact discussion of how to properly consider a home in terms of NW and also FIRE, SWR. Thanks to all!
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Re: Home value as a percentage of net worth
Old 11-29-2006, 06:16 PM   #14
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Re: Home value as a percentage of net worth

Quote:
Originally Posted by DRiP Guy
I love the fact that even thought the poll's parameters were quite straightforward, it also led to a very good but compact discussion of how to properly consider a home in terms of NW and also FIRE, SWR. Thanks to all!
heh, heh, heh.... http://early-retirement.org/forums/i...p?topic=3219.0

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Re: Home value as a percentage of net worth
Old 11-29-2006, 06:36 PM   #15
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Re: Home value as a percentage of net worth

Quote:
Originally Posted by REWahoo!
Whew!

Today's little excursion seems to have whittled a few miles off of the journey, as compared to the prior thread!



Thanks!




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Re: Home value as a percentage of net worth
Old 11-29-2006, 07:06 PM   #16
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Re: Home value as a percentage of net worth

Hmm, I am currently the ONE person down there at the bottom with my home being around 200% of my net worth. Interesting.
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Re: Home value as a percentage of net worth
Old 11-29-2006, 07:14 PM   #17
 
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Re: Home value as a percentage of net worth

Well, when I bought my first house. I had a net worth of about 1,000 - The house was worth about $50K so, at that point in time my house was 5,000% of my net worth
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Re: Home value as a percentage of net worth
Old 11-29-2006, 09:32 PM   #18
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Re: Home value as a percentage of net worth

Quote:
Originally Posted by furpants
Hmm, I am currently the ONE person down there at the bottom with my home being around 200% of my net worth. Interesting.
You must be young. Most of us here are old farts.
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Re: Home value as a percentage of net worth
Old 11-29-2006, 09:44 PM   #19
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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.
You used the wrong smilie...

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Re: Home value as a percentage of net worth
Old 11-29-2006, 10:21 PM   #20
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Re: Home value as a percentage of net worth

Quote:
Originally Posted by Vincenzo
Arg! I chose the wrong answer. I chose 31 to 45% when it is actually 10 to 20%.
It's ok. I should have checked the box allowing one to revote. Will remember to do it next time.
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