How much of your net worth does your home represent?

[MichaelB]

Thanks, that is so true. Even worse, I might have to go with the state backed insurance of last resort because AFAIK no insurance companies are taking new wind and hail (hurricane) policies in New Orleans even in this 10th year after Katrina. The state insurance would add a couple of thousand a year to my insurance, at the very least, over and above the increase due to a pricier home. We have had new flood insurance maps done by FEMA that raise the flood insurance precipitously for some locations, and lower it for others, so that is something I would need to check out, too. Still, I have been making generous estimates of the increase in carrying costs, and especially now that I have more income through my divorced spousal SS benefits it seems like "all systems are go". I am also assuming quite a bit more for renovations prior to moving in, than I would probably spend, depending on the home. Everything is double checked in FIRECalc with conservative assumptions.

That is a tougher issue to figure through. Insurance is definitely an issue that motivated us to stick to the lower end of what we could afford. The insurance we have available is not that good but still very expensive, and I'm not sure how we would fare in a situation where there is substantial water damage but not a total loss.

 

[NW-Bound]

Mountain? The highest point in New Orleans is Laborde Mountain, a stunning 43 feet above sea level:

Couturie Forest | New Orleans City Park...

That Web page says "New Orleans’ highest point of elevation: Laborde Mountain. Measuring a daunting 43 feet above sea level, oxygen and sherpas are available upon request".

Well, then perhaps a wrap-around balcony or veranda from which you can watch the annual parade.

When we were in N.O. last, we took time to walk around Audubon Park, and admired the gorgeous homes on the perimeter of the park. These are million-dollar homes, but the smaller ones in the surrounding Uptown/Carrollton all have charm. Probably still pricey.

 

[timemoveson]

Toronto - ouch

Toronto now stunningly expensive and going straight up. There is only one Toronto in Canada and it's behaving like London or Manhattan with respect to desirability for immigrants and business (Vancouverites and Calgarians, your lovely cities are different although currently the impacts and outcomes look the same).

For me, main home + vacation property add to about 40% of NW at the moment. It is the absolute cap for me despite fact everything is paid for. No more, not tempted to upgrade anything from here!

 

[38Chevy454]

About 20% of savings for me, not including SS or pension. Although I do not really consider house value in net worth, since it is not income producing. It may be cost avoidance, ie vs paying rent, but you still have some costs for prop tax and insurance even if you own it with no mortgage. When I am dead my heirs can worry about the net worth totals.

 

[gomo]

Our house is 4% of our NW.

 

[cranberryjoe]

I don't normally include my house in my net worth, nor do I count SS since I'm not sure exactly what it will be or how to calculate it. But if I did include the house it comes out to be about 12%.

 

[eta2020]

That Web page says "New Orleans’ highest point of elevation: Laborde Mountain. Measuring a daunting 43 feet above sea level, oxygen and sherpas are available upon request".

Well, then perhaps a wrap-around balcony or veranda from which you can watch the annual parade.

When we were in N.O. last, we took time to walk around Audubon Park, and admired the gorgeous homes on the perimeter of the park. These are million-dollar homes, but the smaller ones in the surrounding Uptown/Carrollton all have charm. Probably still pricey.

43 foot mountain.....hmmm I wonder who scaled it first......

 

[aja8888]

43 foot mountain.....hmmm I wonder who scaled it first......

It's probably a highway overpass!

 

[LightTripper]

Just for me, about 25pc (I co-own with OH but our savings are separate). That's quite high I guess but it is a 1400 sqft house with small garden in London in a great friendly neighbourhood, and I can walk to work in the financial district in 35-40 minutes, so I feel we get a lot of "quality of life" for our money...

Of course when we ER it probably won't make sense to pay the premium for proximity to the City any more, though I guess we would like somewhere with a bigger garden and reasonably close to family and friends, so I guess we'd be looking at somewhere 20-40pc cheaper, rather than more.

 

[NW-Bound]

43 foot mountain.....hmmm I wonder who scaled it first......

It's probably a highway overpass!

Hmm... Freeway overpasses are usually not 43 ft high. So, could it be a bridge?

I have to investigate further about this "mountain", and find that it is really "Laborde Lookout", and, get this, it is not even natural!

From LaBorde Lookout - Highest point in New Orleans - New Orleans, Louisiana

LaBorde Lookout was built in City Park using riprap from the construction of Interstate 610, a project that began in the 1960s but wasn't completed until the mid-1970s due to lawsuits dealing with building the highway on public park land. It is named for longtime City Park general manager Ellis LaBorde and sits 53-feet tall.​

 

[seraphim]

Not counting the value of our pension, the house is about 13% of our NW.


Sent from my iPad using Early Retirement Forum

 

[NW-Bound]

Hey, the poll result starts to look like a Rayleigh distribution.

 

[TOOLMAN]

4%

 

[Al in Ohio]

Somewhere between 12-15%.


Sent from my iPad using Early Retirement Forum

 

[unclemick]

8 or 9% best guess. Plus the house came with new wife. My old house is up for sale - soon I hope.

heh heh heh -

 

[Free To Canoe]

So I'm guessing you'd rather live where you don't have to pay $1.8M for a former hoarder house?

Hoarder House In Palo Alto Is On the Market for $1.8 Million

Reminds me of a house for sale in Pasadena CA during the bubble that was made out of a water tank.

...
We used to live in Thousand Oaks (Ventura County) back in the mid-1980s. Loved the place (back then). Very crowded now that it's the home of Amgen.

We lived in Newbury Park back in the 80s. We really enjoyed it.

 

[Aeowyn]

Your story about buying land fascinates me. Would really like to hear more. As we live in a farming area, many of the residents of my community (CCRC) farmed right up to retirement... and now seem happy and secure, still owning and leasing their land. As an aside to this, over the years they tell me that they invested in more land, which left them relatively untouched through changes in the stock market.

I'm not sure what you want to know. I love dirt. We purchased the 94 acres in a remote location in Tennessee where dirt is relatively cheap - but not as productive as somewhere like Iowa. But I'd much rather live in Tennessee. Weather is nice, no state income tax and I love the rolling green hills. I plan to raise cattle so I think it will work out well. We are already talking about buying more land (attached to ours), but first we have to get the land we already own under control - also need to recover from building the house.

Most people talk about retiring and and traveling. I don't want to go anywhere. We spend most of our efforts trying to get people to visit us instead.

As far as the financial investment aspect of land - it does offer diversification to a portfolio of stocks and bonds. Most people invest in real estate with rental houses or apartments. I prefer dirt.

 

[imoldernu]

I'm not sure what you want to know. I love dirt. We purchased the 94 acres in a remote location in Tennessee where dirt is relatively cheap - but not as productive as somewhere like Iowa. But I'd much rather live in Tennessee. Weather is nice, no state income tax and I love the rolling green hills. I plan to raise cattle so I think it will work out well. We are already talking about buying more land (attached to ours), but first we have to get the land we already own under control - also need to recover from building the house.

Most people talk about retiring and and traveling. I don't want to go anywhere. We spend most of our efforts trying to get people to visit us instead.

As far as the financial investment aspect of land - it does offer diversification to a portfolio of stocks and bonds. Most people invest in real estate with rental houses or apartments. I prefer dirt.

Thank you... That's exactly what I was wondering about.
Now that we've had a chance to be with "farmers" for many years, I see a different part of life that I was never exposed to. Almost to a person, my current friends are more laid back and happy with their lives. Not only the retirees, but their children and their families. Overall, healthier, less stressed and more secure. Not that it's a simple life, or the stereotype "okie", because they are exceptionally well educated and culturally adept... just a little closer to the earth, and living in communities with a basic heritage of honesty and social responsibility. Something that's had to put a dollar value on.

wish you well and a healthy, happy retirement!

 

[robnplunder]

I don't include SS in my asset calculation. I am curious. For those who include SS in their asset figure, how do you calculate it?

 

[aja8888]

I don't include SS in my asset calculation. I am curious. For those who include SS in their asset figure, how do you calculate it?

Take the amount of years you estimate you have left to collect it. (now to last year of life)

Then multiply that number of years by the amount you are collecting (or going to collect). you can adjust the yearly amount by COLA, if you wish.

Then take the product of the numbers you multiplied and do a net present value of that figure.

 

[MichaelB]

I don't include SS in my asset calculation. I am curious. For those who include SS in their asset figure, how do you calculate it?

Simple. It's the NPV of the pension cash flow between two dates - when you start and when you stop. All you need are the two dates and a discount rate.

 

[mickeyd]

Try this:
http://lmgtfy.com/?q=how+to+compute+present+value+of+social+security

I have always considered making such a calculation an unnecessary exercise that tends to generate inaccurate assumptions.

 

[Aeowyn]

Thank you... That's exactly what I was wondering about.
Now that we've had a chance to be with "farmers" for many years, I see a different part of life that I was never exposed to. Almost to a person, my current friends are more laid back and happy with their lives. Not only the retirees, but their children and their families. Overall, healthier, less stressed and more secure. Not that it's a simple life, or the stereotype "okie", because they are exceptionally well educated and culturally adept... just a little closer to the earth, and living in communities with a basic heritage of honesty and social responsibility. Something that's had to put a dollar value on.

wish you well and a healthy, happy retirement!

It is funny you should mention "... living in communities with a basic heritage of honesty and social responsibility". We just had some friends visit us from the Chicago area. They just found and purchased their retirement property about 15 minutes away from where we live. They reminded me of a lot of "legal" type things you think about coming from the city that just aren't as relevant here. Don't get me wrong, I still think it is important to have things like an umbrella policy in place. But if some kid wanders on to my property and gets hurt, it is more likely that their parents will "take them to the wood shed" than sue me.

 

[MooreBonds]

Plus the house came with new wife.

Damn.....that's one hell of a package deal!

 

[audreyh1]

8 or 9% best guess. Plus the house came with new wife. My old house is up for sale - soon I hope.

heh heh heh -

Congrats on a house coming with the wife, unclemick!