House Value to Net Worth %

10% of net worth. But mentally, I don't count the housing as an asset, but as an expense. The house value isn't factored into my retirement numbers. If I ever move, the plan is to at most do an equal trade, and not escalate the home value.
 
I think this is a great question.
Our plan is to move after retirement and I was trying to come up with a realistic budget for new home. We have lived in current home 20+ years and paid $135,000. Value per tax valuation is $250k. No mortgage.
I was planning on a budget of $400k for new home. Which would equate to approx 15% of net worth. So I think this is a great reasonableness check. Thanks for the question.!!
 
About 12%.
Surprising how many times I've seen that number in this thread.
 
RobbieB said:
I don't know what percentage of expenses my house is, I don't know what my total expense is. I don't budget or track. I don't care. Yes, life is good - :)

I can tell you that my meager SS survivor income covers my housing, utilities, insurance (5 motor vehicles, house, umbrella, earthquake and health) mobile phone and primo DTV package. Chump change, 15 grand a year. If I rented my place it would cost me 15 grand a year just for rent...
Click to expand...

Chump change indeed. Lucky you! That 15 grand is not enough for our health care cost and insurance.
 
This is an excellent topic. So many multiple real estate people here, whereas I'm only a single real estate guy (at the moment).

9.2%* for me, which has me thinking more about getting another place. My housing cost is about 13% of my expense budget. I could stand to spend more on a second place if it would make life more interesting.



* House value from today's Zillow (yes, I know, but has 2 significant digits), net worth excludes expected future annuities, excludes personal property.
 
So at what point are you "house rich"? I do not think anyone on this forum is house rich, but when I see +30% that for me would be getting close to being house rich. My guess the people that responded +30% are not retired yet and/or live in a HCOL area. Likewise the people that responded with <10% have already downsized and/or have significant investment assets.... Very interesting tread, but there seems too many variables to understand where "one's" situation compares to others...
 
bradaz2488 said:
So at what point are you "house rich"? I do not think anyone on this forum is house rich, but when I see +30% that for me would be getting close to being house rich. My guess the people that responded +30% are not retired yet and/or live in a HCOL area. Likewise the people that responded with <10% have already downsized and/or have significant investment assets.... Very interesting tread, but there seems too many variables to understand where "one's" situation compares to others...
Click to expand...

Funny, to me that would be "house poor". My definition of house poor is when an uncomfortable percentage of your income has to go towards paying for housing.
 
Meadbh said:
Funny, to me that would be "house poor". My definition of house poor is when an uncomfortable percentage of your income has to go towards paying for housing.
Click to expand...

I guess my thinking is (technically) if your house represents +50% of your total NW then you have more "wealth" in house vs other assets, correct? That would make you "technically" house rich, right? If we look at it based on how much it cost you to live in that house then that may be a good way to know if you are house poor. If it represents +50% of your total expenses then that would tell be you are really tied to your house....
 
7%, more or less, and the needle doesn't move much when its value is added to the denominator. Deliberately staying small in order to LBMM and because real estate (and other) taxes are outrageous and will get worse in Illinois. Much as I love my home and neighborhood, I'm beginning to look for a Plan B.
 
It's our home today but in the foreseeable future, months to years, will be part of our net worth so the idea of separating home and net worth for any purpose, is not meaningful to us.

Comes from the belief that neither one of us will live our remaining years in this house. Being in a full CCRC...(Homes, Apartments, Assisted Living, Nursing Home and Memory Care) we've come to believe that living in isolation is less desireable than becoming integrated into a close knit social community... no matter the age. We already have dozens of friends who live in the part of the community where all concerns... food, utilities, transportation, and social life are provided for, or offered. The social structure of daily activities is already a part of our lives.

Even five or six years ago (at age 75), I'm not sure that I would have had this kind of outlook. As the obligations of living independently become more time consuming and onerous... the idea of living happy and worry-free is much more attractive. One bill per year covers everything.

No more paying bills for utilities, home maintenance and upkeep, taxes, entertainment and the dozens of other recurring or unexpected charges that now dot our lives.

So for purposes of the thread, about 25%, but not important to us.
 
Under 10%, no mortgage.

After her divorce, I saw mom nearly go bankrupt trying to keep the "big house" where we grew up.

So my current home is less than half the size of the above and recently dropped in value when I successfully appealed this year's property tax re-valuation.

Since we're near the local university, I'll probably never sell, instead turning it into rental property when we move.
 
28% not because my house is worth a lot but because my investments are not that large. But it is 15% if you count my pension. I was also surprised by all the responses of 10% or less.
 
sengsational said:
This is an excellent topic. So many multiple real estate people here, whereas I'm only a single real estate guy (at the moment).

9.2%* for me, which has me thinking more about getting another place. My housing cost is about 13% of my expense budget. I could stand to spend more on a second place if it would make life more interesting.



* House value from today's Zillow (yes, I know, but has 2 significant digits), net worth excludes expected future annuities, excludes personal property.
Click to expand...

Having 2 homes will make your life busier, if not more interesting. When you are not traveling or RV'ing, you can spend time maintaining and doing repairs.

My 2 homes are only 2-1/2 hours apart. I do not know how one can have two homes thousands of mile apart, or on different continents.

I used to dream of having a vacation home in Provence. Then, I changed my mind to the Puget Sound to be closer. Glad I did not do that either.
 
bradaz2488 said:
So at what point are you "house rich"? I do not think anyone on this forum is house rich, but when I see +30% that for me would be getting close to being house rich. My guess the people that responded +30% are not retired yet and/or live in a HCOL area. Likewise the people that responded with <10% have already downsized and/or have significant investment assets.... Very interesting tread, but there seems too many variables to understand where "one's" situation compares to others...
Click to expand...

In our case - the house is paid for and we live in a HCOL area. It doesn't occur to me to sell and move to somewhere cheaper because we like where we live and we have enough of a nest egg to have a comfortable lifestyle without tapping home equity.

You can't spend a house (without tapping a HELOC or financing)... so it doesn't factor in AT ALL to my retirement planning/withdrawal rate, etc...

We were able to purchase it while working and pay it off... now it's value is a non-issue except when polls like this come up.
 
Yes, perhaps several times since I came here. :)

Every so often a new poster will ask the same question. Or, he asks how much money everybody has, or is spending?

It's OK with me though. I think my home values used to be a higher percentage than it is now. My stocks go up more than my homes, even though I withdraw to spend. How nice is that?
 
imoldernu said:
It's our home today but in the foreseeable future, months to years, will be part of our net worth so the idea of separating home and net worth for any purpose, is not meaningful to us.



Comes from the belief that neither one of us will live our remaining years in this house. Being in a full CCRC...(Homes, Apartments, Assisted Living, Nursing Home and Memory Care) we've come to believe that living in isolation is less desireable than becoming integrated into a close knit social community... no matter the age. We already have dozens of friends who live in the part of the community where all concerns... food, utilities, transportation, and social life are provided for, or offered. The social structure of daily activities is already a part of our lives.



Even five or six years ago (at age 75), I'm not sure that I would have had this kind of outlook. As the obligations of living independently become more time consuming and onerous... the idea of living happy and worry-free is much more attractive. One bill per year covers everything.



No more paying bills for utilities, home maintenance and upkeep, taxes, entertainment and the dozens of other recurring or unexpected charges that now dot our lives.



So for purposes of the thread, about 25%, but not important to us.
Click to expand...



As always your witness is instructive. Reading your comments, you have me wanting to identify and move into a CCRC early with DW.

Without meaning to reroute this thread, what do you think is the optimal age range for moving into a CCRC? And how far in advance should one be identified and arranged? And which location has CCRCs to suit you better -- northcentral Florida or downstate Illinois? Feel free to answer privately if that suits you better.
 
bradaz2488 said:
So at what point are you "house rich"? I do not think anyone on this forum is house rich, but when I see +30% that for me would be getting close to being house rich. My guess the people that responded +30% are not retired yet and/or live in a HCOL area. Likewise the people that responded with <10% have already downsized and/or have significant investment assets.... Very interesting tread, but there seems too many variables to understand where "one's" situation compares to others...
Click to expand...

My homes make up about 28% of my total net worth. I am retired, my wife still works. I live in a relatively high cost of living area.

Does that make me house rich? House poor? Does it matter if the other 72% of my net worth makes me financially independent?

Am I better off than folks who report 12%? Am I worse off than folks who report 30%?

If home values in my area crashed suddenly, would I be better off or worse off (assuming I'm not relying on the value of my homes for retirement)? What if home values suddenly skyrocketed?

I can't see how the ratio of home value to net worth means much if anything out of context. It's just a number. Better to ponder the ratio of televisions-to-net-worth.
 
7.3%
$800k house with $200k left on mortgage.
We are downsizing in next 12 months so mortgage will be gone.
 
NW-Bound said:
Having 2 homes will make your life busier, if not more interesting. When you are not traveling or RV'ing, you can spend time maintaining and doing repairs.

My 2 homes are only 2-1/2 hours apart. I do not know how one can have two homes thousands of mile apart, or on different continents.

I used to dream of having a vacation home in Provence. Then, I changed my mind to the Puget Sound to be closer. Glad I did not do that either.
Click to expand...
To each their own. I pay people to maintain and manage our homes. Certainly not for everyone, but not difficult to figure out if you have the means.
 
Yes. It is certainly not a problem that more money cannot fix. :)
 
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