View Poll Results: Primary residence(s) as a % of net worth (without primary residences)
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Less than 5%
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22 |
7.51% |
6-10%
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87 |
29.69% |
11-15%
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59 |
20.14% |
16-20%
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42 |
14.33% |
21-30%
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51 |
17.41% |
31-40%
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16 |
5.46% |
More than 40%
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16 |
5.46% |
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Poll: Primary Home as % of Net Worth
04-02-2018, 01:33 PM
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#1
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,206
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Poll: Primary Home as % of Net Worth
We’re relocation home shopping (again) and everywhere we want to live is too expensive and everywhere I think homes are reasonable doesn’t fit our wants and needs. So I’m faced with ponying up quite a bit more for our retirement dream house. This has come up in/directly in several threads lately, but I can’t find the last poll on the subject.
Yes I know it all comes down to supporting spending based on our new net worth after a $200K hit, but just wondering what’s typical.
I’m probably being a cheapskate (coupled with fear of buying in a somewhat appreciated market), and DW is being reasonable, but whatever you do - don’t tell her.
For the poll, please use- Numerator: $ Value of your 1 primary residence (2 homes if you’re a snowbird), but don’t include income properties.
- Denominator: Your $ net worth without primary residence, but please include income/investment properties.
- If you’re still working, paying a mortgage - use full value of your home and projected net worth both at retirement. If that’s too far off to project (if you’re younger), please don’t vote?
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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04-02-2018, 01:38 PM
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#2
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Full time employment: Posting here.
Join Date: Aug 2013
Location: https://www.google.com
Posts: 750
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6% primary only
Did not include second residence, which is just a getaway.
If I did, we'd be just under 9%
edit: no mortgages
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04-02-2018, 01:42 PM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,203
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Just curious. Do you want people still working to respond? And is this the full value of the home, or just equity? There was certainly a time when my % would've been well over 100%, using the full value. Not sure if you want to skew the numbers like that.
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04-02-2018, 01:44 PM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,206
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Quote:
Originally Posted by RunningBum
Just curious. Do you want people still working to respond? And is this the full value of the home, or just equity? There was certainly a time when my % would've been well over 100%. Not sure if you want to skew the numbers like that.
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Good question. I’d use full value of home, and your expected net worth both at time of retirement. If you can’t project both, voting will skew the poll. Thanks.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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04-02-2018, 01:48 PM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Posts: 17,205
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Well, the numbers are off a bit but I have already voted..
I am just over 10%, but not to 11%.... so I put mine in the 10% bracket...
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04-02-2018, 01:59 PM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,206
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Quote:
Originally Posted by Texas Proud
Well, the numbers are off a bit but I have already voted..
I am just over 10%, but not to 11%.... so I put mine in the 10% bracket...
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Rounding is good. Thanks.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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04-02-2018, 02:42 PM
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#7
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Recycles dryer sheets
Join Date: Aug 2013
Posts: 399
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Very timely as we are moving soon as well. And I am trying to determine an appropriate $ amount to spend on new home. I voted and am currently at 9% of current home value to net worth. But we know the cost of homes in the area we want to move to is higher current home. Even though we want to downsize we are looking at pulling additional funds to buy new home. So this poll will give me a nice benchmark...
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04-02-2018, 02:49 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Mar 2013
Location: Southern California
Posts: 3,995
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65% here in Southern California. Seems kind of crazy when I have to actually calculate it but it is what it is.
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04-02-2018, 03:02 PM
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#9
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Recycles dryer sheets
Join Date: Aug 2014
Posts: 141
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11% in northern CT
__________________
"Doubt is not a pleasant condition, but certainty is absurd." Voltaire
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04-02-2018, 03:12 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Jan 2017
Location: Hog Mountian
Posts: 2,077
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20%
__________________
Never let yesterday use up too much of today.
W. Rogers
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04-02-2018, 03:13 PM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,309
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42% in DC suburbs. Almost as crazy as SoCal. Haven't voted yet.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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04-02-2018, 03:19 PM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2016
Posts: 8,968
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10%
But after all the improvements I'll probably be around 13%.
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04-02-2018, 03:31 PM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2006
Location: west coast, hi there!
Posts: 8,808
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We have a high ratio (California real estate) but is this the real figure of merit you want Midpack?
For example, suppose the ratios and income cash flows are the same but:
1) Couple A has a $1M/$2M = 50% home/networth
2) Couple B has a $200k/$400k = 50% home/networth
Seems to me these situations are hugely different and do not take account of retirement spending needs.
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04-02-2018, 03:42 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Feb 2013
Location: Toronto
Posts: 3,320
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Isn't denominator incorrect given the title of the thread?
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04-02-2018, 03:46 PM
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#15
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Thinks s/he gets paid by the post
Join Date: Aug 2009
Posts: 1,577
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Quote:
Originally Posted by Midpack
We’re relocation home shopping (again) and everywhere we want to live is too expensive and everywhere I think homes are reasonable doesn’t fit our wants and needs. So I’m faced with ponying up quite a bit more for our retirement dream house. This has come up in/directly in several threads lately, but I can’t find the last poll on the subject.
Yes I know it all comes down to supporting spending based on our new net worth after a $200K hit, but just wondering what’s typical.
I’m probably being a cheapskate (coupled with fear of buying in a somewhat appreciated market), and DW is being reasonable, but whatever you do - don’t tell her.
For the poll, please use- Numerator: $ Value of your 1 primary residence (2 homes if you’re a snowbird), but don’t include income properties.
- Denominator: Your $ net worth without primary residence, but please include income/investment properties.
- If you’re still working, paying a mortgage - use full value of your home and projected net worth both at retirement. If that’s too far off to project (if you’re younger), please don’t vote?
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For the poll, please use
* Numerator: $ Value of your 1 primary residence (2 homes if you’re a snowbird), but don’t include income properties.
* Denominator: Your $ net worth without primary residence, but please include income/investment properties.
That calculation seems weird just to me. E.g., if your primary residence is worth 1m and your other assets like stocks/bonds are worth 1m then your calculation would yield 100%. Seems like it should be 50% according to your subject title?
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04-02-2018, 03:55 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Location: The Beautiful Blue Ridge Mountains
Posts: 2,782
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Right now we're at about 12%, but we've been looking for a new home for over two years without much luck. Since I've come into an inheritance, we've earmarked that money plus the equity we have now for a cash purchase. So that will likely put us in a higher bracket, but we don't need that money to meet expenses and we SO want a better home than we have now (especially better neighbors - right now we have a rear neighbor who seems to have started running a junkyard).
Our problem is finding a right-sized house for two people that has nice construction, finishes, and a rational floor plan that also affords one-level living to allow us to age in place. We can find nice houses that are 4k sq ft, but there doesn't seem to be anything in the middle range below that and above spec starter houses.
We keep looking.
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04-02-2018, 04:05 PM
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#17
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Full time employment: Posting here.
Join Date: Sep 2012
Location: Albuquerque
Posts: 840
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Quote:
Originally Posted by whatnot
Very timely as we are moving soon as well. And I am trying to determine an appropriate $ amount to spend on new home. I voted and am currently at 9% of current home value to net worth. But we know the cost of homes in the area we want to move to is higher current home. Even though we want to downsize we are looking at pulling additional funds to buy new home. So this poll will give me a nice benchmark...
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Same situation for me. Originally I had planned to spend an extra $50-100K to move to the PNW but it is now starting to look like it will cost more unless I am willing to seriously compromise on my next home. My poll vote would be 35% but that is not meaningful to the OP since the bulk of my income is pension and SS and normally not included in net worth. The investments are for discretionary income mostly earmarked for travel. Also I'm older than most at age 62, have no need to leave an inheritance, and am sort of a homebody. I'm traveling some this first year of retirement but really enjoy my time at home so a nice house in a good location might be worth the extra money.
__________________
Retired on 9/30/2017 at age 62
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04-02-2018, 04:11 PM
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#18
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Location: Miraflores,Peru
Posts: 1,992
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0% here in South America as we rent our apartment and rent out our primary residence.
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04-02-2018, 04:13 PM
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#19
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,014
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We could buy another residence. Or buy a fancier place than where we are living. But it is not a priority at the moment. We're so busy doing other things.
I joke to myself that I'll just pony up the big bucks when we pick a continuous care type place. And maybe we'll even keep this as a winter place for a while.
But gosh - if you can afford it, why not ante up for something great now while you can afford it? So what if it's a bit less for your daughter! Sound like she has already had much generosity directed her way and is doing very well standing on her own two feet in spite of the legs up she's been given. I expect she'll end up very well off regardless.
__________________
Retired since summer 1999.
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04-02-2018, 04:16 PM
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#20
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,474
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OK, I hope I did it right. I came up with 17.6% using my best estimate of the house's present selling price, and this was the number I voted for in the poll.
When I bought my home in 2015, the percentage of net worth was 15.7%. We have had a bit of a (very localized) housing bubble in my immediate neighborhood since then.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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