Home value as a percentage of net worth

[rs0460a]

Ron,

I wonder where you're located or what type of home (manufactured?) that you anticipate the market value of your home declining. I ask because in another thread currently going on there is duscussion of living in inexpensive manufactured homes and the impact of their depreciation as opposed to appreciation with stick-built homes.

Live in NE USA (about 90 miles from NYC); 2400 sq ft 2-story Colonial. Existing homes (not new) in this area have dropped 5% year-over-year (according to the local sales stats).

Just so happens that me/DW (in our "early years") did live in a mobile home (single-wide), back in the early '70's. Didn't own the land it was on (however, luckly enough not to be in a park, but a country setting). Kept it four years, sold it for 55% of the original purchase price (and I thought I was doing well!).

- Ron

 

[Delawaredave]

It's easy to criticize the "poll design", but I've found this to be a worthwhile thread/poll.

 

[dmpi]

The poll results seem bogus...the large majority of posters have net worth 3 to 10 times their house value?

I was also supprised at the results.... but hey... I'm one of them too.
People here either live in cheap houses or a have lot of money or both.

 

[AltaRed]

My question was first stupid, then meaningless. Now you tell me what I should be asking!

If it was stupid and meaningless, why are you still around inputting your thought? Is it possible that you like to be around stupid and meaningless people so you'd feel comfortable? Well, I don't like to be around or dealing with people I don't like, and that's you. If you did not know why the question was asked that way, the best thing was to inquire as opposed to jumping to the conclusion.

To clarify, I did not call "you" stupid or meaningless and would never call people names. The comments were directed to my view of the poll because market value has no relationship to net worth without knowing the equity component for comparison.

However, you are right. I could have instead asked why the question was being asked that way and I could have done so politely. For that, I apologize to you personally and to the readers of this forum for the distractions. I will be more tactful in the future.

 

[Sam]

Strictly emotional - non rational decision.
.....
heh heh heh - 5.75% and NO! I don't wish to regurgitate the pay off the house or carry the mortgage debate. Pencil me in for rent - even though I don't practice what I preach.

Your honesty and straigth forward attitude is refreshing. I like your style. (Where is that Thumb Up symbol?)

Sam, your poll is interesting. You know by now though that we have people here who argue about everything and polls for some reason are especially subject to criticism. Even the pollmeister Dantien hardly does polls anymore. I rather like them; they lead to interesting discussions and a view of a snippet of the world.

I totally agree with the polls making for interesting discussions. I for one like them as well and based on the number of respondents it seems like a lot of folks share our views.

It's easy to criticize the "poll design", but I've found this to be a worthwhile thread/poll.

Thank you all.

I believe that the house value is directly proportional to the housing expense. All things being equal a 500K house costs about twice as much to live in as a 250K house. This includes opportunity cost, tax, utilities, maintenance and repair (Justin, you read my mind!)

Given the nature of this forum, I expected the majority of members here live in a house that is 10 to 20% of their networth, and the poll results seem to agree with my guess. I'm in the next higher bracket (21 to 30%), but am working to get to 15% by the time I retire.

Thank you all for participating.

Justin, you're right that the percentage is high for young people. I could have included a "For older people only" restriction, but chose not to, in order to see the whole spectrum. Thanks for your vote and for the explanation.

 

[Corporateburnout]

Your honesty and straigth forward attitude is refreshing. I like your style. (Where is that Thumb Up symbol?)

Thank you all.

I believe that the house value is directly proportional to the housing expense. All things being equal a 500K house costs about twice as much to live in as a 250K house. This includes opportunity cost, tax, utilities, maintenance and repair (Justin, you read my mind!)

Given the nature of this forum, I expected the majority of members here live in a house that is 10 to 20% of their networth, and the poll results seem to agree with my guess. I'm in the next higher bracket (21 to 30%), but am working to get to 15% by the time I retire.

Thank you all for participating.

Justin, you're right that the percentage is high for young people. I could have included a "For older people only" restriction, but chose not to, in order to see the whole spectrum. Thanks for your vote and for the explanation.

The housing expense may or may not be directly proporational to house value. State and local property taxes differ greatly between states and local cities and town (I pay half in property tax than a friend who owns an identical house in a adjacent state). Utility maintenance and repair cost may be about the same whether you heat/maintain a 2000 square foot house that cost 250k or 500k since that geographic location determine house value.

 

[astromeria]

When we first bought our house, it represented 10-20% of our NW. 4 years later, the house has appreciated faster than our portfolio, and it's now in the 21-30% bracket.

 

[Sam]

If Houston RE gets that kind of appreciation, I would never get to my 10-20% target! Not that I'm complaining