House Value to Net Worth %

[Rambler]

Primary residence 12%
Second home 6%

Sometime in the next few years the current primary will be divested, and the second home will become the primary.

 

[RobbieB]

Real estate here is red hot. I get constant solicitations to sell by mail and phone.

A well maintained wholly owned home that you like (location, climate and activities) is a blessing in retirement. You know the area and where stuff is and how to find it. Not to mention way cheaper than renting.

Yup, nine percent of net worth by house value / net worth. It's not a difficult calculation.

 

[Sandman62]

Counting both of our pension values - 1.1m and 1m (per www.immediateannuities.com) - plus retirement and savings accounts, our home value is about 11% of total net worth.

FWIW, DW's pension is from state (teacher) and mine from a very stable private company. I'm retiring in a few months (age 55) and DW probably in a few years.

 

[Senator]

My own home, about 7%. If I include all real estate, about 70%.

 

[Blue Collar Guy]

Real estate here is red hot. I get constant solicitations to sell by mail and phone.

A well maintained wholly owned home that you like (location, climate and activities) is a blessing in retirement. You know the area and where stuff is and how to find it. Not to mention way cheaper than renting.

Yup, nine percent of net worth by house value / net worth. It's not a difficult calculation.

I wish my number was 0 % at least your only at 9.
Not a week goes by that our door bell doesnt ring. I have a huge collection of pens from the real estate agents. Some with flashlights, I love those. The last one gave the obligatory pen, a business card, and sent a follow up thank you note. Im gonna one day take these 7 figures, run ,fly , drive, to some tax free state, and set up shop. I hope one day my home value is zero compared to my net worth. I hate being a home owner. Maybe because all the stuff I do I started at the age of 50 ., I was supposed to do these things as right of passage in my 30's.

 

[iloveyoga]

10.7%.

 

[RobbieB]

Sounds like you need a motorcycle -

I have 4, but getting rid of one, 4 take up too much space inna garage.

It's nice here. I have fishing in the Delta, 3 hours to Reno, hour and a half to San Jose or Sacramento. Yosemite is a day ride.

Yup, if you don't like it where you are that would be a good reason to move. Why are you worried about taxes?

 

[socca]

I am just evaluating if I am an outlier in terms how much of a house we will have in retirement.

There are lots of financial outliers hanging around on ER.org, so this board may not be the best place to visit for an answer.

As others have pointed out, there are many factors to consider when 'right-sizing' a retirement residence. The ratio of residence market value to net worth may be far down the list.

 

[EQMAN]

11.5%

 

[DrRoy]

6%

 

[FIREd]

~7%

 

[Meadbh]

A well maintained wholly owned home that you like (location, climate and activities) is a blessing in retirement. You know the area and where stuff is and how to find it. Not to mention way cheaper than renting.

+1
I couldn't agree more with that sentiment. However I did wonder about the rent versus buy argument, so I did some back of the envelope calculations. Turns out my monthly cost of ownership is ~$440. (I am mortgage free). The going rate to rent my condo is about $1500 per month. If I could earn a 3.3% return on investing the estimated proceeds from the sale of my condo, I would break even. So I think it would be a wash financially. But enjoying my own home is worth something!

 

[NW-Bound]

My 2 homes are 25% of my net worth. I have to figure this out to get the answer, because I do not care about the home values, and do not include them in my Quicken screen.

The upkeep and maintenance costs for them do show up in Quicken though, and that hurts like the Dickens at times.

PS. For the past 5 years, the cost of owning the homes, i.e. taxes, repairs, updates, utilities, insurance, is 25% of my total living expenses. Quicken does not lie.

PPS. Oops, made an error. It is worse. It's 34% of total living expenses!

 

[ExitLeft]

32%.
We could downsize and shift the ratio dramatically. Maybe will at some point. Costs (time and $) of maintaining the home would be reason enough, but the kids are here likely for a few more years.

 

[RobbieB]

I don't know what percentage of expenses my house is, I don't know what my total expense is. I don't budget or track. I don't care. Yes, life is good -

I can tell you that my meager SS survivor income covers my housing, utilities, insurance (5 motor vehicles, house, umbrella, earthquake and health) mobile phone and primo DTV package. Chump change, 15 grand a year. If I rented my place it would cost me 15 grand a year just for rent.

I like being a homeowner -

 

[MikeWillRetire]

25%. Still working in a HCOL area.

 

[Fishingmn]

20% for us - probable we would downsize at some point

 

[FlaGator]

I don't know what percentage of expenses my house is, I don't know what my total expense is. I don't budget or track. I don't care. Yes, life is good -

I can tell you that my meager SS survivor income covers my housing, utilities, insurance (5 motor vehicles, house, umbrella, earthquake and health) mobile phone and primo DTV package. Chump change, 15 grand a year. If I rented my place it would cost me 15 grand a year just for rent.

I like being a homeowner -

My, my, you have positioned yourself well

One the few times I have been envious.....My cost for health and auto insurance alone is what you spend on the total.

As I heard in Australia - Good on ya, mate!

 

[Lawrence of Suburbia]

25%-ish

 

[HillCountry]

Based on purchase price in 2009, it is 9%. Or 14% if based on the current county appraisal. Will downsize after 2023.

 

[Luck_Club]

Challenging question:

It depends when you measure doesn't it?

So when you buy a house, assuming you stay in the time tested affordability index and buy about 25%-30% of your gross income, you should end up with your house at a percentage of about 25% of your net worth when paid off yes or no?

However, if you pay off early, or measure right when you retire your other assets haven't caught up resulting in a higher percentage. On the other hand if you under bought your house living in a trailer when you could afford a McMansion your percentage could easily be very small. Same holds true if you win the lottery or other economic good fortune without an upgrade in lifestyle your percentage may appear very small.

So the true question among this group is... "are you living at, below, or above your expected level of housing given your level of income and retired wealth?" Figuring the size and amenities will vary by location.

 

[krwellnitz]

22% but paid for home

 

[hesperus]

8% for primary residence, 13% for all property. No mortgages.

 

[rodi]

40% based on realistic market value. (Similar home closed on our block last Friday).

But it's paid for and nest egg is enough to cover our needs without taking equity out of the house. We may downsize in the future... But we still have teenagers under roof.

I tend to ignore the home equity except when thinking about long term care.

 

[Hermit]

I wish my number was 0 % at least your only at 9.
Not a week goes by that our door bell doesnt ring. I have a huge collection of pens from the real estate agents. Some with flashlights, I love those. The last one gave the obligatory pen, a business card, and sent a follow up thank you note. Im gonna one day take these 7 figures, run ,fly , drive, to some tax free state, and set up shop. I hope one day my home value is zero compared to my net worth. I hate being a home owner. Maybe because all the stuff I do I started at the age of 50 ., I was supposed to do these things as right of passage in my 30's.

Mine IS 0%! But then again, I live in a van down by the river. Well, OK. It is an old motor home that was given to me and it is by a creek that only runs in the Spring.

I am building my house, but I just consider it a hobby. Some day when I get a certificate of occupation I am sure the county will tell me what they think it is worth.