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View Poll Results: What real estate do you own?
Yes, we have rentals 28 18.30%
Yes, we have REITs 9 5.88%
We have a combination of various types of real estate 43 28.10%
Just our personal residence 68 44.44%
No, don't have any real estate 5 3.27%
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Portion of your NW in real estate
Old 03-03-2021, 06:41 PM   #1
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Portion of your NW in real estate

Do you have any money in real estate? This could be REITs, rental properties, your primary residence, land, etc.

We have about 20% or so in rentals, all paid off. Plan to sell those off slowly starting in about 3 years, as I only want them when I am healthy and agile enough to do most of the work myself...and I'm 59 now. Once we get rid of them, I will likely get into a REIT or something similar. I like the balance that real estate gives to equities. I don't have any data to prove this, but they don't seem to move the same way all the time and at least in my small city, real estate is not the least bit volatile.
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Old 03-03-2021, 06:46 PM   #2
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I track personal residence separately from other real assets in my spreadsheet.

For those who include real estate in their net worth, how do you value it?

I update mine once a year at assessed value, which seems conservative.
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Old 03-03-2021, 06:48 PM   #3
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Quote:
Originally Posted by twaddle View Post
I track personal residence separately from other real assets in my spreadsheet.

For those who include real estate in their net worth, how do you value it?

I update mine once a year at assessed value, which seems conservative.
Appraisals or comps. Easy to run comps and get in the ballpark if you have a home in a neighborhood. Not so easy if you have an unusual house not in an area with other like homes.

We had to have an appraisal to get a HELOC years ago. For our rentals, our insurer required "mini appraisals" (not as detailed, but not as costly) so we have estimated values at the time of purchase.
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Old 03-03-2021, 06:49 PM   #4
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I prefer assessed value because if I used actual market value, I would be over-weight real estate.
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Old 03-03-2021, 06:53 PM   #5
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Zero in Real Estate. Sold home and now full time traveling. No REITs either.
When I had a home I used market value less sales costs as the number for NW.
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Old 03-03-2021, 06:57 PM   #6
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I have a fixed 10% in REIT funds in my retirement portfolio. For asset allocation purposes I treat it as half stock, half bonds.
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Old 03-03-2021, 06:58 PM   #7
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Zero in Real Estate. Sold home and now full time traveling. No REITs either.
When I had a home I used market value less sales costs as the number for NW.
Harvey, that's a good approach on subtracting sales costs...we do the same but I failed to note this.
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Old 03-03-2021, 06:59 PM   #8
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I own my own home (paid for it in cash).

For my purposes I consider it to be a possession, not an investment. I have no intention of ever selling or moving. So, I do not include it in my investment portfolio.

The only reason I ever have to compute my net worth is for ER-Forum threads like this one. When doing so I use my best guess at its present value, when compared with equivalent houses in my neighborhood.
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Old 03-03-2021, 07:03 PM   #9
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Own our house paid in cash. Gone up 15% in the first year, but of course not considered part of the investment portfolio.
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Old 03-03-2021, 07:06 PM   #10
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I have no intention of ever selling or moving.
I used to think if somebody made me an unsolicited offer > X, then I might consider it, but X -> infinity these days.
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Old 03-03-2021, 07:08 PM   #11
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I live in a neighborhood with 5 floor plans. So I just track the house sales that are the same floor plan as mine. There might be some differences, upgrades or lot size. but it give me a general price. I do not add the value to my available assets net worth. That is just cash and investments. I have a second net worth that include the house, pension value, etc.
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Old 03-03-2021, 07:16 PM   #12
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I value my house as per the "activity report" a local realtor sends me every month. His marketing "info" scheme. He wants to sell my house.

I do include it in my net worth and it's about ten percent.
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Old 03-03-2021, 07:24 PM   #13
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I own my home in a small community and land. The ranch land now, is used just for a get away, fishing, hunting, hiking and wildlife sanctuary.

No income from the land.
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Old 03-03-2021, 07:32 PM   #14
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I don't worry about net worth, or what percentage my house is of NW. I only look at my invested assets and income, vs budget needs. My house has a value that I am aware of fairly close, but I do not include that in my NW since it is not income producing. It puts a roof over my head and place for me to work on my cars in my big detached garage. If I had to put a number for house as percentage of NW if the house was included, along with some REIT investments, it would be approx 25%.
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Old 03-03-2021, 07:37 PM   #15
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Just our primary residence. I don't include the house in our net worth since it's not a liquid asset and we're not planning to sell it.


Our house is worth about 225K.
Our portfolio is around 1.7M.
So if you add it up, the house is about 11.5% of everything we have.
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Old 03-03-2021, 09:10 PM   #16
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We're at about 30% RE. Including primary residence. Also own 4 rental houses, 2 vacant lots, and a cabin on a lake. I don't really have any intention of selling primary home, so don't Include that in any income stream analysis. 56 years old and no intention of selling rentals any time soon. Been retired 2.5 years and between DW pension and rental income we have not touched retirement accounts yet.
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Old 03-03-2021, 09:11 PM   #17
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55-60% of net worth in real estate (primary + 1 rental)
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Old 03-03-2021, 09:59 PM   #18
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Quote:
Originally Posted by 38Chevy454 View Post
I don't worry about net worth, or what percentage my house is of NW. I only look at my invested assets and income, vs budget needs. My house has a value that I am aware of fairly close, but I do not include that in my NW since it is not income producing. It puts a roof over my head and place for me to work on my cars in my big detached garage. If I had to put a number for house as percentage of NW if the house was included, along with some REIT investments, it would be approx 25%.
+1

Just out of curiosity, I made an estimate of the values of my 2 stick-built homes. Together, they are 20% of my net worth.


PS. This subject comes up on this forum every so often. I remember for a past thread perhaps more than 5 years ago, I computed my RE value, and if memory serves, it was more than 25% of my NW. Apparently, RE here does not appreciate as fast as stocks.
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Old 03-03-2021, 10:05 PM   #19
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Way too much. 60+% between primary, secondaries, land, and rentals. Planning on selling at least one home in the next couple years, or maybe converting it to another rental. And we'll probably downsize another. We will keep the rentals for the foreseeable future, as the income is sweet and the rate of return is growing. I've always planned to cut back on the percentage of personal real estate as we get older and keeping up with it gets harder. Sorry to say I think I'm getting there.
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Old 03-03-2021, 11:32 PM   #20
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Quote:
Originally Posted by NW-Bound View Post
+1

Just out of curiosity, I made an estimate of the values of my 2 stick-built homes. Together, they are 20% of my net worth.


PS. This subject comes up on this forum every so often. I remember for a past thread perhaps more than 5 years ago, I computed my RE value, and if memory serves, it was more than 25% of my NW. Apparently, RE here does not appreciate as fast as stocks.
Oh My..... you reminded me.

I have an old over 100 yr family property on a remote island. My grandfather was "well off" and spend a lot to build the place.
I've been told he spend $2,000 in 1920 to build it.
He did crazy stuff like had french doors shipped by train and then wagon, then cross the lake on row boats. Back then motorboats were incredibly rare.
So my estimate of the place now is it's worth around $100K.
Had he put the money into the stock market and left it there, it would be worth $12,000,000

By the way, while he was well off, he spent most of his money, and nothing else passed down the line to my generation but stories.
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