House Value to Net Worth %

[gerntz]

~5%. LCOH area & never wanted a big house. 3BR ranch, 3BA.

 

[marinauser]

11%

 

[imoldernu]

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.

An interesting question, best answered because of the way we retired... from 1989 to 2004 (when we both turned 68), we had lived 6 months in Florida and 6 months in Woodhaven Lakes Campground in Illinois. Cost of living in both places was minimal, but we decided to buy a regular home in 2004 to protect a substantial value through medicaid if it became necessary. The Villa (separate full size 1600sf individual home) is part of the CCRC, here in Liberty Village. We were the youngsters @68. From 2004 to 2014, we were still spending 6 months in Florida.

We really like our CRC here in IL... We did look at Florida, not so much as a CCRC, but as older Over 55 Communities... We didn't find any CCRC's in Florida in our price range... (most did not have separate full size homes, but condo's or apartments) and we wanted our separate home. The Villages were a little steep for us, and we could see the time when we wouldn't want that much traffic or activity.

Over 55 communities do not as a rule have direct connections with CCRC's.

One other major factor for us, was the fact that we do not have a "buy in" endowment fee. Some CCRC's have up front (refundable) fees of $100K to $300K...

Aside... There seems to be a little misconception of CCRC, as we know it... In most cases it doesn't include separate homes. Since we DO live in a separate house, we are not in daily 24/7 contact with the full mix of ages.... ie. up to age 102.
As of now, our interaction is by choice. I don't think that at age 68, living in a condo or apartment CCRC would have been a first choice. We were still too active.

I wouldn't pretend to give advice. We did what worked for us, both socially and financially. Also... being northerners, afters spending years in Florida, we learned to appreciate the four seasons.

 

[SJ1_]

Curious about where the average person is in terms the value of your house relative to your net worth. Our house represents 21% of our net worth. As we prepare for retirement, I am calibrating financial assets needed to support retirement and am interested in the general house to net worth ratio. Thanks

13 percent

 

[UpAnchor]

House value to NW = 16%. Don't expect to ever see single digits now that we're living partially off portfolio while hoping that house continues to appreciate to some degree.

 

[Sunset]

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.

6% and ditto.

 

[Travelfreek]

Wow! Loaded question! Lots of factors...but...56% for us! We live in NorCal and our house is worth $850k. We owe $190k but have a 5 year plan to pay it off early (currently we have 9 years left on 2.75% 10 year fixed rate mortgage but are dropping extra $20k a year on it ). We want zero debt and our mortgage is all we owe on. We have good pensions and about $800k in retirement money. We want to fund awesome vacations for our kids and grandkids! We are simplifying our financial life!

 

[kcowan]

Yes. It is certainly not a problem that more money cannot fix.

I think the problem is when people try to save money by NOT hiring a property manager. Then it becomes an issue. We have PMs for both residences when we are away.

 

[doneat54]

Probably around 25%. Seems like an odd metric however without factoring in equity of the the home, since the equity portion IS part of the networth number.

Mortgage(s) against networth, or equity in home(s)/Real estate would also be interesting.....

 

[Koogie]

Circa 16% of net worth. Primary residence only, mortgage free.

Unlike many/most here, I despise home ownership and would be a happy renter for the rest of my life. DW however likes it. And I like being happily married so...

 

[Doingitwrong]

Currently 21%.
Getting ready to FIRE and it will probably double to 42%.
And we'll have a mortgage again.
Four government pensions aren't included in NET WORTH.

 

[Dog]

16%

 

[calmloki]

I use the property tax man's "true cash value" for our properties in Quicken, and I do include our two homes in our net worth. The two personal use houses are 7.5% of our net worth, and all real estate holdings including our houses is 43% of our NW.

 

[Clover5]

60%

 

[JohnT]

21%

 

[ceciledian]

~13% primary home, primary and cabin ~23%. I was just thinking about the "conventional wisdom" that the home is most peoples biggest asset. Not the case here.

 

[CherylGrrl]

17%

 

[TheRunningMan]

Only 1 mortgage free home and nothing fancy...it is 9.25% of total net worth. I am a few years from FIRE. I would upgrade and buy nicer but property taxes piss me off. Cheers!

 

[NW-Bound]

~13% primary home, primary and cabin ~23%. I was just thinking about the "conventional wisdom" that the home is most peoples biggest asset. Not the case here.

Same as your situation, my 2 homes are 25% of my networth.

But while they add nothing to the bottom line, they cost mucho. As mentioned in an earlier post, the maintenance and operating cost is 34% of all expenses in the last 5 years (no mortgage).

So why have 2 homes? It's my preference for consumption, the same as someone who buys his/her Teslas.

 

[Turboslacker]

15.8%

 

[datuck]

~ 11% based on current market value. Will downsize next year as ds #2 goes off to college.

 

[HGTVfan]

18%

 

[Danmar]

Same as your situation, my 2 homes are 25% of my networth.

But while they add nothing to the bottom line, they cost mucho. As mentioned in an earlier post, the maintenance and operating cost is 34% of all expenses in the last 5 years (no mortgage).

So why have 2 homes? It's my preference for consumption, the same as someone who buys his/her Teslas.

Agree. For us, as a percentage of net worth about 18-20% but as a percentage of after tax spend it would be 20-25% (no mortgages). Everybody makes their own personal decisions on where they spend their money.

 

[kcowan]

Same as your situation, my 2 homes are 25% of my networth.

But while they add nothing to the bottom line, they cost mucho. As mentioned in an earlier post, the maintenance and operating cost is 34% of all expenses in the last 5 years (no mortgage).

So why have 2 homes? It's my preference for consumption, the same as someone who buys his/her Teslas.

wow that is amazing -34% must include a bunch of things like roof or deck repair?

 

[NW-Bound]

Well, there's another possibility, that is we are so frugal that the total living cost is so low and the housing expenses stick out more.

OK, OK, time to come clean. People here are astute, and hard to fool.

Yes, I had recent "one-time" expenses on maintenance on the 2nd home. The DIY deck replacement was already elaborated on another thread, but the house siding replacement was a lot more expensive (could not do it myself), even though I only did the south-facing side that did incur more damage from the sun exposure. The main home got kitchen update treatment, and 12 of its 21 windows upgraded.

I am keeping my fingers crossed that the next 5 years will see fewer repairs or updates.

PS. Forgot the main home got 2 humonguous trees removed to make room for an extra parking pad.