View Poll Results: What real estate do you own?
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Yes, we have rentals
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28 |
18.30% |
Yes, we have REITs
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9 |
5.88% |
We have a combination of various types of real estate
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43 |
28.10% |
Just our personal residence
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68 |
44.44% |
No, don't have any real estate
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5 |
3.27% |
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Portion of your NW in real estate
03-03-2021, 05:41 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Mar 2007
Posts: 1,854
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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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"Live every day as if it were your last, and one day you'll be right" - unknown
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03-03-2021, 05:46 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Posts: 1,703
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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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Emancipated from wage-slavery since 2002
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03-03-2021, 05:48 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Mar 2007
Posts: 1,854
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Quote:
Originally Posted by twaddle
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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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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"Live every day as if it were your last, and one day you'll be right" - unknown
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03-03-2021, 05:49 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Posts: 1,703
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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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Emancipated from wage-slavery since 2002
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03-03-2021, 05:53 PM
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#5
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Full time employment: Posting here.
Join Date: Jul 2016
Location: gypsy traveller
Posts: 676
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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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03-03-2021, 05:57 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: Feb 2011
Location: NC Triangle
Posts: 5,807
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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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03-03-2021, 05:58 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Mar 2007
Posts: 1,854
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Quote:
Originally Posted by HarveyS
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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Harvey, that's a good approach on subtracting sales costs...we do the same but I failed to note this.
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"Live every day as if it were your last, and one day you'll be right" - unknown
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03-03-2021, 05:59 PM
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#8
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,474
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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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03-03-2021, 06:03 PM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,232
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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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TGIM
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03-03-2021, 06:06 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Posts: 1,703
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Quote:
Originally Posted by W2R
I have no intention of ever selling or moving.
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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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Emancipated from wage-slavery since 2002
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03-03-2021, 06:08 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Jun 2004
Location: No. California
Posts: 1,858
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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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03-03-2021, 06:16 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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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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03-03-2021, 06:24 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: Nov 2016
Posts: 9,422
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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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03-03-2021, 06:32 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 4,354
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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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The problem isn't artificial intelligence, it's natural stupidity.
You can't spend yourself to prosperity.
Semi-Retired 7/1/16: working part-time (60%) for now [4/24/17 changed to 80%]
Retired Aug 2, 2017; age 53
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03-03-2021, 06:37 PM
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#15
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Thinks s/he gets paid by the post
Join Date: Feb 2021
Posts: 2,328
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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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03-03-2021, 08:10 PM
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#16
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Recycles dryer sheets
Join Date: Feb 2011
Location: On a dirt road
Posts: 332
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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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"Up sluggard and waste not the day, in the grave will be sleeping enough." Benjamin Franklin
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03-03-2021, 08:11 PM
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#17
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Recycles dryer sheets
Join Date: May 2015
Location: NorCal
Posts: 329
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55-60% of net worth in real estate (primary + 1 rental)
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03-03-2021, 08:59 PM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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Quote:
Originally Posted by 38Chevy454
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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+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 age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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03-03-2021, 09:05 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: May 2008
Location: No fixed abode
Posts: 8,764
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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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"Good judgment comes from experience. Experience comes from bad judgement." - Anonymous (not Will Rogers or Sam Clemens)
DW and I - FIREd at 50 (7/06), living off assets
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03-03-2021, 10:32 PM
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#20
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,012
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Quote:
Originally Posted by NW-Bound
+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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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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