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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 09-23-2016, 11:10 AM   #141
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Originally Posted by YVRRocketSurgery View Post
That's how ridiculous the housing market has been in Vancouver over the last two decades.
We're in Seattle. Bought our little 1940's house in 1998, and the mortgage is paid off. The insane RE market here has put us in the >50% category on the poll. We are surrounded by $500k tear-downs; every day it seems there's a new hole in the ground somewhere in the neighborhood. I don't see it changing any time soon, especially with the new tax on foreign buyers in B.C. Seattle becomes No. 1 U.S. market for Chinese homebuyers | The Seattle Times

We have already purchased (in 2011) our retirement condo in Anacortes, WA and are renting it out for current income. Seattle is starting to drive us crazy with the traffic and prices, but we can't seem to leave our wonderful little house, which we love. First we thought we would move when we FIRE'd. Then when the kid went off to college. Now we're staying as long as the dog is still around (no fenced yard at the condo).

If we sold we would have the freedom and $$ to travel more, and we want to do that before we are tied down with parents to care for, or too decrepit ourselves to enjoy travel. First world problems.
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Old 09-23-2016, 11:37 AM   #142
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Originally Posted by NW-Reader View Post
We're in Seattle. Bought our little 1940's house in 1998, and the mortgage is paid off. The insane RE market here has put us in the >50% category on the poll. We are surrounded by $500k tear-downs; every day it seems there's a new hole in the ground somewhere in the neighborhood. I don't see it changing any time soon, especially with the new tax on foreign buyers in B.C. Seattle becomes No. 1 U.S. market for Chinese homebuyers | The Seattle Times

We have already purchased (in 2011) our retirement condo in Anacortes, WA and are renting it out for current income. Seattle is starting to drive us crazy with the traffic and prices, but we can't seem to leave our wonderful little house, which we love. First we thought we would move when we FIRE'd. Then when the kid went off to college. Now we're staying as long as the dog is still around (no fenced yard at the condo).

If we sold we would have the freedom and $$ to travel more, and we want to do that before we are tied down with parents to care for, or too decrepit ourselves to enjoy travel. First world problems.
I could totally do retirement in Anacortes, as I understand it is sunny there, unlike Seattle. I would like a place with lots of sunshine and nice water views, not too hot. Anacortes seems to meet those requirements.
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Old 09-23-2016, 12:24 PM   #143
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I could totally do retirement in Anacortes, as I understand it is sunny there, unlike Seattle. I would like a place with lots of sunshine and nice water views, not too hot. Anacortes seems to meet those requirements.
Watch out for the earthquakes though.

(Good enough for Burl Ives who died there.)
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Old 09-23-2016, 03:46 PM   #144
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I can only speak for myself.... But my retirement plan did not include "spending" my house or using my house for anything but shelter. Since it's paid off - the expense is just the normal expenses of owning a home - maintenance, upgrades, taxes, insurance.... Those are the same among similar size houses whether the house is in a high COLA or low COLA.
I doubt that Rodi.

Taxes, insurance and maintenance cost will vastly differ between high COLA Boston Suburb and average COLA Colorado Springs.

You are looking at easily 5 times higher expense for a same house.
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Old 09-23-2016, 04:37 PM   #145
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Once we paid off the house (12 years after we purchased), it became a non-issue.
That's kind of the way I treat the decision, but the fact that it's paid-off isn't an air-tight reason never to get leveraged again...there might be a reason some day. But as mentioned, this is getting dangerously close to the pay-off / don't pay-off can of worms. But back to my original comment, I'd say if I found I was in the top % in this poll, I'd seriously consider reducing equity and become more involved with other asset classes.
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Old 09-23-2016, 05:06 PM   #146
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A little over 10 % here. However I give no consideration regarding my investments and the income they will generate in retirement. Our lake house could be added to investments but that's just a plan D or E if needed down the road. In any event our annual costs are above average for our part of the country. It is a lifestyle choice.
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Old 09-23-2016, 05:56 PM   #147
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.. But back to my original comment, I'd say if I found I was in the top % in this poll, I'd seriously consider reducing equity and become more involved with other asset classes.
I don't think that the % from this poll matters so much in individual cases. What matters for retirement readiness in individual cases is the ratio of the individuals investable assets to their expenses.

As long as this ratio is sufficiently okay, then the equity in the primary residence should be irrelevant. Any holding costs of the residence are already captured in the expenses number.

What I find interesting is the absolute numbers provided by the Census data and the very low absolute amount of investable assets there combined with the implied %'s

-gauss
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Old 09-23-2016, 07:14 PM   #148
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Presumably this poll is intended to distinguish the house-rich from the house-poor. The problem is that the poll as constructed fails to distinguish two people in very different financial situations:
(1) a person with a paid-off house and an investment portfolio much larger than the market value of the house;
(2) a person with a huge mortgage and relatively low equity, where the investment portfolio could be used to pay off the mortgage, but then nothing would be left.
Both of these people will report a low percentage, but in my mind this is mixing apples and oranges. Since I'm debt-averse, I am likely to view person #1 as being in better overall financial condition than person #2. Other folks will disagree. That's OK.
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Old 09-23-2016, 07:22 PM   #149
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This poll is "just for fun" as stated. Why do you presume anything?
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Old 09-23-2016, 08:01 PM   #150
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Selling an expensive home might work out well if the sudden need for resources is caused by a big increase in expenses (LTC, etc). But if it's due to a market downturn, it might not work out as well. It looks like a lot of oldsters have a lot of their net worth in their homes. If everybody decides at once to sell and move in with the kids, be a renter or to downsize, it might be tough on some RE market segments.

From DFW_M5's link:


I agree - there is a decent chance that when we go to sell (assuming Plan B scenario) we will sell for less than current market value. It would still be a number well above zero.... so it will work for plan B to provide some funds for LTC.

Fortunately, our NW w/out equity (red bar) is bigger than our equity.... That graph from DFW_M5's link shows many are in a different scenario than we are.... Home equity is their biggest chunk of net worth. Firecalc says we're good when we run it excluding the home value but including the home expenses.
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Old 09-23-2016, 10:13 PM   #151
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For last year it was 15.49%, which is the lowest over the last 19 years. The high was 27.55%.

We have always been very conservative when estimating home equity, and do not count on it as part of our retirement plan. We know too many people who count on it for retirement and have it blow up in their face well before that. I agree with the viewpoint that, due to so many in our age range counting on home equity as a major chunk of their retirement, one is likely to get a lot less when all of those people start cashing in.
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Old 09-24-2016, 12:48 AM   #152
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Old 09-24-2016, 06:52 AM   #153
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. But back to my original comment, I'd say if I found I was in the top % in this poll, I'd seriously consider reducing equity and become more involved with other asset classes.
Agree and this was the point of my earlier post re Vancouver (post #99). At some point, if your investment in real estate is way out of whack, you probably consider bringing it back into line by downsizing or moving to a lower cost location. This is not just the case for those with mortgages. Balance of asset classes, especially in retirement, seems wise to me. I think you can be "house poor", at least in a relative sense, even with a paid off house.
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Old 09-24-2016, 06:58 AM   #154
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This poll is "just for fun" as stated. Why do you presume anything?
Everything here is"just for fun". But not much fun if we don't make presumptions, judgements, give advice and opinions?
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Old 09-24-2016, 08:10 AM   #155
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Everything here is"just for fun". But not much fun if we don't make presumptions, judgements, give advice and opinions?
+1, where else can you find objective unbiased advice and opinions.
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Old 09-24-2016, 08:42 AM   #156
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14.9% with a small mortgage. But about 25% if we owned it free and clear.
I agree with others who think this is a "flaw" in the survey.

I prefer "what percentage of your monthly income goes to housing expenses (mortgage, taxes, utilities, upkeep)".
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Old 09-24-2016, 09:11 AM   #157
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If I just use the equity in our home it's around 30% of our current combined house/financial assets. Probably not too far from the norm in our area.
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Old 09-24-2016, 09:20 AM   #158
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Presumably this poll is intended to distinguish the house-rich from the house-poor. The problem is [...][...][...]
Nope, that presumption is wildly off base.

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I just wanted to compare investments to home equity, without getting into the net worth definition which can be such a hornet's nest. The poll is just for fun, not to prove anything whatsoever.
(emphasis mine) I believe I said that in not just one, but several posts.

Try to have a little fun with it. Those who are approaching it as anything more than just Wednesday afternoon fun (which it was), are missing the whole point. Not only that, if I ever have a party I'm sure not inviting you!

Again, this is not a scientific poll and was never intended to be such. Kick back, RELAX, and go read another thread if you'd rather.
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Old 09-24-2016, 09:26 AM   #159
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What kind of information we can extract from this poll? I agree that poll based on monthly income versus living expenses will be more beneficial to see how most of the retires manage it.


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Old 09-24-2016, 09:30 AM   #160
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What kind of information we can extract from this poll?
Absolutely NONE. PLEASE do not attempt to get any sort of scientific information at all from this poll, or from reading Winnie the Pooh either.

I don't know how to explain fun to those that may not understand it, and who have been puzzled by my many posts saying that this is not a scientific poll but just something fun to do on a Wednesday afternoon. But anyway that's what the poll was for.

Feel free to post your own polls if you want to design something to extract information.
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