Poll - House value to net worth

[joeea]

Quote:

Originally Posted by Happyras I don't consider personal property, pensions, vehicles, or horses in my NW.

I don't consider horses in my net worth, either.

And even if I actually owned a horse, I probably wouldn't include it in my net worth.

[NW-Bound]

Quote:

Originally Posted by ncbill My old college roommate moved out to the San Jose area 15 years ago & bought a 3/2 SFR for around $500,000 then. Zillow pegs it at $1,500,000 today, and comps look close to that number. Because of the above, his company is having trouble attracting workers, and may move out of state. If so, I think my buddy will be able to finance his ER on the home sale alone...

My younger brother refused a job offer from Google because they did not pay him enough. Surely, their pay was higher, and the option grant was worth several hundred K$. But he would not want to leave his 4,500-sq.ft. home to go live in an old little home in Mountain View. He and his wife love a big home. They recently upgraded to an even larger home. How many $M he would need to buy the same, if he moved to Google?

And myself, I refused a job offer 35 years ago to move to Santa Monica to work for an avionics company. They gave me 20% raise, 3 weeks of vacation, my own covered parking spot. But when I looked at the homes that I could afford, I rejected the offer. And even back then, the 1 to 1.5-hr commute one-way to work would lower the quality of life so much they could not pay me enough.

[Midpack]

Barely over 5%...

[braumeister]

My favorite home story comes from a friend who built a really nice custom home in Redmond Washington in the early 80s. A few years later Microsoft moved its HQ there, about a half mile away.

He sold that house for a staggering profit.

[Rustic23]

+25% including net value of pensions 7%

[Tree-dweller]

Quote:

Originally Posted by exnavynuke I put 25% or more, but I don't count the value of pension in my NW normally, so I didn't include that in the calculation. Otherwise it would have been quite a bit lower.

Likewise.

[Blue Collar Guy]

Some very interesting answers, horses, pension values, disliking of the poll, meaningless.. There is even a comment on another thread didnt we do this poll aready? ,hahahah too funny.

[street]

Barely over 5%

[ejman]

Quote:

Originally Posted by RobbieB I have a 1400 sq-ft house on a 7000 sq-ft lot. Yup, pretty small. But it doesn't cost much to heat or cool and it's a cozy nook for 2 people with no stairs. I've lived in this house for 28 years and no plans to move. During that time it's tripled in value but the property tax has gone up only 60%. Last year I installed solar to keep my utilities low. It's one thing that makes for a nice stress free retirement -

Thank you for the clarification. Somehow based on prior posts I pictured a 10,000 sq/ft mansion with manicured acres of lawns and a a nice chauffeur driven Bentley parked in the driveway. This makes a lot more sense as to the reported expenditures on other luxuries which are peanuts cost wise in comparison. Good job!

[RobbieB]

Hehe, yeah I didn't get to be in the high fidelity first class section eating caviar and wagyu by blowing all my dough on housing -

As long as I don't buy the million dollar house and a Maserati I can do pretty much whatever I want.

[Aiming_4_55]

10% or more but less than 15% for now, it may get below 10% when I move to semi-ER in the future, i.e. in about 2 years

From my other post....11.5% based on current net worth and no mortgage. Working until the BS bucket overflows, sometimes I feel it's a matter of days, but thinking a couple of years, then semi-retire to other options to be determined.

Its a modest 3 bedroom condo, 1,400 sq ft in Southern California, excellent schools for the kids and about 10 minutes from the ocean. We purchased with the idea that semi-retirement was within 5 years, so wanted the maintenance free/association fee trade off. Association fee and taxes are below $1,000 per month so it's pretty cheap. It's working so far.

[OneDay]

My home is worth less than 10% of my net worth.

[texcurtis]

25%

[Koolau]

Quote:

Originally Posted by MichaelB The popularity of this thread suggests we should have a poll. http://www.early-retirement.org/foru...rth-87686.html What is the value of your house to your total net worth, as a percent, using your best guess at the current estimated market value the market value. If you have a mortgage, subtract it from your net worth. If you have multiple residences for personal use, include them all.

At least a couple of questions occur from responses so far?

1) Should we (how should we) use NPV of SS and/or pension? I've never used these in NW calc.

2) Should we include the value of home in NW? Currently I don't do that but it would make a significant difference in the answer.

[scrabbler1]

Quote:

Originally Posted by Happyras A very interesting poll...If not the home, what does make up the majority of net worth?

For me, my after-tax portfolio represents most of total NW. It is just under 60%. My rollover IRA is about 33% and my small co-op apartment I own outright is the rest, about 7%. It's the monthly and quarterly dividends coming from the after-tax portfolio which supply me with the money to cover my expenses, leaving its principal untouched. I lack unfettered access to the IRA for the next 5 years but it has been growing nicely since late 2008.

[Tallman4123]

Just a smidgen over 10% for us. Mortgage-free and pension-free so a very straight forward calculation...

[Happyras]

Quote:

Originally Posted by joeea I don't consider horses in my net worth, either. And even if I actually owned a horse, I probably wouldn't include it in my net worth.

It is interesting to note that we have 6 horses currently. Last year we bought one for 100K and it broke (went permanently lame), wrote it off. We spend about 12K/mo keeping a few of them in training, they are worth what someone will pay. One we have is for sale, most likely will get <100K for it. But it costs >25K/yr to keep it in training. My point being, the horses are a fairly large asset, but also a significant drain on cash flow. Then again, so is a house.

[bloom2708]

Ah. Another what is in your "net worth" discussion. :-)

I don't count my house or cars in my net worth..ok..well..that is not your net worth, that is your "selective worth". :-)

I count this asset, but not that. I count this liability but not that one. Well, that isn't your "Net" worth then. :-(

[ikubak]

+1 for bloom

[neihn]

3 homes. 2 in US, 1 in Vietnam, about 25% net worth.