House Value to Net Worth %

[scrabbler1]

I don't understand these 8 & 10% responses. If your house is worth $400k, then your non home assets are from 4.6 to 3.6M? (assume house fully paid) Really?


Also, what value do you use to add a pension to your assets? The equal of a 4% SWR? So is $60k in pension the same as $1.5M in assets?

I live in a small apartment in a co-op complex. I estimate its value at $100k. The rest of my portfolio is worth about $1.4M. Therefore, $100k/($1.4M+$100k) is roughly 7%.

I attribute my NW in part to living in a small apartment. First, I had a small mortgage and was able to pay it off in 1998, 9 years after I bought it. Next, a small apartment in my co-op has a low monthly maintenance charge, keeping my expenses low.

 

[Sanstar]

8.6%

 

[FANOFJESUS]

15% but that is only because we are in the Midwest.

 

[Blue Collar Guy]

Mine IS 0%! But then again, I live in a van down by the river. Well, OK. It is an old motor home that was given to me and it is by a creek that only runs in the Spring.

I am building my house, but I just consider it a hobby. Some day when I get a certificate of occupation I am sure the county will tell me what they think it is worth.

Nice, I enjoy your style.

 

[Ready]

40%.

It's a Southern California thing. Just the way it is here.

 

[kevdude]

~20%

Not only is our numerator pretty subjective, our denominator is as well as most of our net worth is centered in investment real estate.

 

[Scuba]

Around 25%

 

[DrBrisket]

~30% right now

Bought way more house than we needed a couple of years ago as the value of your primary residence does not have to be declared on the FAFSA. Was an attempt to lower my EFC and lower insanely high tuition costs as my children go through their college years. Planning to "downsize" to ~10-15% once I RE in OMY or is it 2MY or is it 3MY or argh....

 

[brucethebroker]

I would prefer a question of the "net value" of your "homes" (including vacation/2nd homes). A 225k home with a 100k mortgage would count more on this survey than a 125k free and clear vacation /2nd home in your survey. Net values, on the other hand, would be the same on each.

Many do not include the net value of homes on net worth, since it is a "frozen" asset and not producing current income. Looks good on paper, but not valuable to income unless you sell or reverse mortgage it.

But, to be a sport, 20%.

 

[Aiming_4_55]

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 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.

 

[davismills]

13%

 

[Dash man]

6.6% for primary home.
15% for all real estate.

 

[Omalley]

9%, no mortgage.

 

[Danmar]

18-20% Including all our personal use real estate. Aged 67. Retired 11 years. Looks like the norm for retired people might be 10-25%? I dont seem to be outside the normal range? Really is heavily dependant on where you live.

 

[RunningBum]

Challenging question:

It depends when you measure doesn't it?

So when you buy a house, assuming you stay in the time tested affordability index and buy about 25%-30% of your gross income, you should end up with your house at a percentage of about 25% of your net worth when paid off yes or no?

No. There's no logic to say that one number leads to another. The rest of your net worth depends mostly on how much you save each month after paying your mortgage, which is highly variable. Many people will save very little, and their house will be a huge % of their wealth.

 

[Car-Guy]

For my primary house, if I carved out a few acres just for the house and associated structures, I'd estimate it would represent <5%. My second house is only about 2%.

No mortgage on either of these, ever.

 

[gomo]

3% No Mortage

 

[Ted_Shepherd]

12%, two houses as family residences, no mortgages

 

[NgineER]

22% primary
44% with investment properties

 

[SumDay]

~12%. Before we "downsized" it was 6%. We live in a very affordable area.

Sent from my SAMSUNG-SM-G930A using Early Retirement Forum mobile app

 

[bradaz2488]

16.5% and no mortgage.... The house is about 2X more then we really need but we really love the house and location. We did a lot of custom features and high end upgrades when we had it built 15 years ago. However, if someone offered me enough money over market value I would sell it. All my stuff is for sale at the right price. .... Will downsize when the house gets too much to take care of.

 

[Carol1862]

24%. No mortgage

 

[jetpack]

paid about 4%, but it's now at 5%... and at this point I should downsize.

 

[timemoveson]

About 25%, 2 homes: primary + country home. All paid for. Primary is in VHCOL area.

 

[Tom52]

Approximately 7.7% with no mortgage