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View Poll Results: My home represents this percentage of the total computed in Step 1 (in the first post
0-10% 92 26.44%
10-20% 132 37.93%
20-30% 65 18.68%
30-40% 24 6.90%
40-50% 18 5.17%
>50% 7 2.01%
I rent or do not have a main home 10 2.87%
These poll choices are terrible! None fit me, but I wanted to participate. 0 0%
Voters: 348. You may not vote on this poll

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Old 09-21-2016, 04:15 PM   #61
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9.6% after a fresh 15yr refi. Equity is slightly over half of current market value so, as we're not far away from entering the decumulation phase, I only expect this percentage to grow. Unless investment assets end up chasing one of those upper lines in Firecalc.
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Old 09-21-2016, 04:16 PM   #62
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Originally Posted by Helena View Post
.

Do you factor what you paid for your paid-off house... or what it is worth now ??

.
Yes.
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Old 09-21-2016, 04:35 PM   #63
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Originally Posted by Nemo2 View Post
9.016% here......those rolled up newspapers in the middle of the road are getting pricier.
Rolled up newspaper !! LUXURY !! We live in a culvert under the road...

(Which is 15% of our total and we have no mortgage or liens on the culvert..)
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Old 09-21-2016, 04:51 PM   #64
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Helen, I use the number that we paid for the house. 10 years ago. Today we can sell for more, but we do not know how the future market will be.


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Old 09-21-2016, 04:51 PM   #65
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I used what my home is worth now.
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Old 09-21-2016, 05:11 PM   #66
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So it's not just for catastrophic loss of the entire house, which I agree would be a rare occurrence. For me, it's for catastrophic, PLUS a combination of hail/tornado risk in this area . . . and all the intermediate size claims that add up over the years.
But surely that is all included in the price you re being charged for the policy, and the insurance company is charging enough above that to make a profit. Unless we know more than the insurance companies about our particular risk, then we must admit we are paying more to them then they are likely to pay to us.


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Also, not sure about this, but I believe our umbrella insurance requires a certain level of home and auto coverage.
Probably so. But can't a renter get umbrella coverage?
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Old 09-21-2016, 05:15 PM   #67
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Quote:
Originally Posted by Helena View Post
.

Do you factor what you paid for your paid-off house... or what it is worth now ??

.
I was thinking of your best estimate of the equity you have in your house today. Sort of like the poll was a snapshot in time - - also with your portfolio value as it is today.

But really, it doesn't matter! It's not a scientific poll, so we can have fun with it.
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Old 09-21-2016, 05:20 PM   #68
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About 8%, not counting pension, rental or second home. No debt.


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Old 09-21-2016, 05:33 PM   #69
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Looking at results so far, it looks like home value is less than 20% of the portfolio size for a majority/large plurality of participants. And, this poll likely overstates home value as a % of assets for most respondents here because:
-- Results include people early in their careers with little savings yet. Their home values will typically dwarf the size of their portfolios.
-- It doesn't include net present value of any pensions or SS
-- Many people may downsize their homes in later years.

So, maybe an average situation would be that a home represents less than 10% of the typical net worth of a retiree here.

So--I wonder if most of us plan to continue to buy homeowner's insurance? Insurance (in general) is for catastrophic losses that we would have trouble overcoming. It's a net "loser," but even so, we buy it because the potential impact of a loss would be devastating. Sure, we probably want coverage against being sued, but do we really need to pay for insurance coverage to replace our home due to fire, flood etc if that home could be replaced without undue impact to our quality of life? Many folks here are prepared to accept a drop in their portfolio values by 10%, and the chance of a house burning down is >miniscule< compared to the likelihood of a big market downturn. Maybe we just need renter's insurance to cover our stuff and to protect against lawsuits?
I have a very bad habit of voting before I read the instructions so maybe I missed something....I only used the EQUITY I have in the home so value does not come into play. I don't think the mortgage company would let me drop coverage. Your point may be valid for those without a mortgage, but home insurance is cheap for me, especially after a 50% premium reduction when I left State Farm. High COL area, too. It is a fun poll and I am surprised to see my results are in the largest band
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Old 09-21-2016, 05:46 PM   #70
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8%. As far as insurance is concerned, I wouldn't feel comfortable self insuring all of it. But I do have a higher deductible than some people I know. I have high deductible on health insurance as well.
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Old 09-21-2016, 05:48 PM   #71
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About 9% with no mortgage. But, since you're not counting pensions (which I don't have) in the calculation, I would have a vastly different number (probably 18%) if I had not made the decision to take a lump sum payout in lieu of a pension. So, omitting present value of pensions distort the results, in my opinion.


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Old 09-21-2016, 05:49 PM   #72
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I have a very bad habit of voting before I read the instructions so maybe I missed something....I only used the EQUITY I have in the home so value does not come into play.

Isn't your equity the current value of the house, minus your mortgage balance?

I'm one of those Californians with a high percentage of my NW tied up in the family home: 39.7%. I'll be glad when that number drops, since it'll mean that our investment balances are growing!
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Old 09-21-2016, 05:58 PM   #73
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I didn't use the value we paid - I used my best estimation of what it's worth based on 2 sales on my street within the past 2 years of similar size/models. One was fixed up/updated more than ours is.... the other was pretty original to the 1963 "new" state... So the new owners had to update it. I averaged the prices.

Zillow was useless for me because our house is now a multifamily since we added our granny flat detached cottage... And zillow includes that. Instructions indicated not including rental properties.


Quote:
Originally Posted by samclem View Post
Looking at results so far, it looks like home value is less than 20% of the portfolio size for a majority/large plurality of participants. And, this poll likely overstates home value as a % of assets for most respondents here because:
-- Results include people early in their careers with little savings yet. Their home values will typically dwarf the size of their portfolios.
-- It doesn't include net present value of any pensions or SS
-- Many people may downsize their homes in later years.

So, maybe an average situation would be that a home represents less than 10% of the typical net worth of a retiree here.

So--I wonder if most of us plan to continue to buy homeowner's insurance? Insurance (in general) is for catastrophic losses that we would have trouble overcoming. It's a net "loser," but even so, we buy it because the potential impact of a loss would be devastating. Sure, we probably want coverage against being sued, but do we really need to pay for insurance coverage to replace our home due to fire, flood etc if that home could be replaced without undue impact to our quality of life? Many folks here are prepared to accept a drop in their portfolio values by 10%, and the chance of a house burning down is >miniscule< compared to the likelihood of a big market downturn. Maybe we just need renter's insurance to cover our stuff and to protect against lawsuits?
samclem - I think the poll was asking for home equity - not home value. So those youngsters with small portfolios and expensive houses - also have small equity, most likely.
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Old 09-21-2016, 06:08 PM   #74
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12%
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Old 09-21-2016, 06:13 PM   #75
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13% We live in extremely expensive area in extremely small house and we live here in a same small house for most of our working life.
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Old 09-21-2016, 06:28 PM   #76
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Net equity 6.21% Gross value 9.09%
With Annuity : Net 5.3% Gross 7.8%


We always chose to stay in our "Starter Home", knowing that it would be too small for a few years, then get to be the right size for our retirement. Also, we both hate moving!!
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Old 09-21-2016, 06:31 PM   #77
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A scooch below 18%.
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Old 09-21-2016, 06:34 PM   #78
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28%. High COL area.

This is an interesting way to think about how much value you have in your primary residence. It's easy enough to increase or lower the percentage by the size of mortgage.

If you end up in an area where real estate has been going up a lot on value, maybe it's better to take some equity out of your house and add it to the portfolio?

But I suspect most would prefer to sell the house and move to a lower COL area. That's has the same result without increasing debt.
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Old 09-21-2016, 06:40 PM   #79
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samclem - I think the poll was asking for home equity - not home value. So those youngsters with small portfolios and expensive houses - also have small equity, most likely.
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I have a very bad habit of voting before I read the instructions so maybe I missed something....I only used the EQUITY I have in the home so value does not come into play.
"Opps"--you guys are right. The poll asks for "equity" not 'value."
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Old 09-21-2016, 06:51 PM   #80
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But nobody has selected >50% yet. There's room at the top!
I think I was the 2nd person to select >50%.

We bought our home in the 90's. Mortgage has been paid off.
To calculate home value (since we should have full equity of the value of our home), I estimated based on the government's price assessment of our house for property tax purposes at the start of the year and what our neighbours just listed their home for. The realtor indicated they sold a comparable home a few blocks over for a similar price. Our house is newer and larger than house for sale so I figure its value is comparable. If so, the value of our house has increased about 3.6x. That's how ridiculous the housing market has been in Vancouver over the last two decades.

The growth of our investment portfolio has done well but hasn't kept up with the rampant increases in home valuations in Vancouver.
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