House Value to Net Worth %

[foxfirev5]

Probably about 20% for two homes. One large house in a wooded subdivision and the other our lake house 17 miles away. It's a lifestyle choice and really has no bearing on our investments. The second house adds about the equivalent of a weeks vacation cost to our budget. When we no longer want it , sell it off and invest the proceeds. Not a big deal either way.

 

[HornedToad10]

Probably around 25%. Seems like an odd metric however without factoring in equity of the the home, since the equity portion IS part of the networth number.

Mortgage(s) against networth, or equity in home(s)/Real estate would also be interesting.....

I think I misread this question originally since thought it was specifically asking for house equity.

If house value then it's ~110% to NW. If house equity compared to net worth then ~50%. I live in NorCal and just bought it a couple years ago and rolled over a ~75% gain from prior townhome over 3 years into the new home as well as some inheritance. In early/mid 30s so still in accumulation phase. That was from the initial purchase to get into it at a reasonable mortgage and now each year it goes down as investments increase and house value is somewhat constant.

 

[jollystomper]

16.4%

 

[jcnyc]

44%, but that's what owning in NYC will do to you!

 

[Blue Collar Guy]

44%, but that's what owning in NYC will do to you!

Yeah Im kicking myself for not buying in Battery Park City back in 1991 ish. I had the money. Now I dont

 

[Mango1956]

20%

 

[RISP]

If house value then it's ~110% to NW. If house equity compared to net worth then ~50%.

I had to run a few calculations to wrap my head around whether this was even mathematically possible.

In case anybody faced the same question, it is. A $1.1M home with a $600k mortgage, $500k home equity, and $500k in other assets would solve those two equations, for example.

Mortgage / NW = 60% sounded brutal at first, but I checked my records. We were at 169% the year we bought our first apartment.

 

[karen1972]

13%

This exercise just made me realize the housing market is currently outpacing my stock investments...ie owned the home for 1 year and it is up 14.5%.

Townhomes in our complex sell every month within 1-2 days, so plenty of identical units to get a good price valuation from.

Curious if people factor in the cost of sale..ie I usually discount my home value by 8% to account for realtor fees and general moving out costs (painting/ cleaning/ minor repairs you ignored because it didn't bother you).