Poll - What Percentage of Net Worth does Equity in your Primary Residence represent? (Recent storms has prompted this)

[Diogenes]

0%. I rent. Formerly as a homeowner, it was 6%. It should have been substantially higher, but the house depreciated in the 20 years that I owned it. And no, I didn't buy at the crest of a bubble. It was mix of bad luck and bad stewardship... sold it to a flipper, at a substantial loss.

My personal lesson has been, that the housing market is far riskier than the stock market. Stocks are more volatile, in the sense of weekly/monthly/yearly oscillations in price... but cumulatively they rise. Houses are less volatile (price oscillates less), but cumulatively are more risky. I can't claim to be a brilliant stock investor... I've been more or less average, and average has been amply good-enough. As a homeowner, I was vastly below average, and am still licking those wounds.

 

[FiveDriver]

I know there's already been 76 replies.

Next time we do one of these polls about percent of Net Worth -- please make responses in 10% increments.

I got it.....what percent of your Liquid Net Worth is the value of your cars ?
Not including Pension, Social Security, Annuities, and Baptismal gifts.
And not including any Farm Implements.....ha-ha

 

[LateToFIRE]

Primary home is 7% of NW using the plain ole Assets minus Liabilities conventional definition. No fancy-pants adjustments for pension or social security or taxes or whatever. I don't use my primary home equity in in retirement planning, except that I know it's there as a just in case things don't go as planned, Plan B option. I am well-insured, albeit with fairly high deductibles to keep cost down.

 

[rodi]

Our paid off house and ADU (on same lot) make up about 40% of total net worth. The ADU generates about 30% of our monthly cash flow in rent.

It is obscene how expensive local real estate is... This is a 60 year old tract home on 1/4 acre. But it's in a good neighborhood close to canyons, the beach, etc

 

[F.I.R.E User]

Rent all the way to the moon.

 

[RapmasterD]

About 20% but I only focus on LNW.

 

[athena53]

7.5%. I was shuddering at the potential monthly cost of an Independent Living community (my $700 mortgage principal and interest payment has spoiled me) and then I realized that the equity that would be released when I sold the house would keep me there quite a long time. And of course a lot of separate monthly costs for property taxes, repair and maintenance go away since they're baked into the monthly fee.

 

[Retired Expat]

Primary plus vacation home is about 15-% of NW but my properties also generate either income or vacation days in others homes so it is a bit muddled

 

[deserat]

Brand new house in FL - if don't count pensions in net worth - 24%%, if count pensions currently receiving (using crude approximation of 25X yearly amount) - not counting SS (not eligible yet) - if count SS, goes down below 10%

 

[Reese]

Retired early for several years now. I've always rented, just simpler for me.

 

[Global Wizzo]

All these storms and the post about Pension vs Net Worth made me curious about the numbers. Again, no real reason purely for curiosities sake. Do not read anymore into it.

Obviously one's mortgage is not included in one's equity. (Realistic Home Value - Mortgage(s) = Equity) If you do not know use the Zillow Estimate, it does not need to exact.

Our home value is not something we consider in Networth

All these storms and the post about Pension vs Net Worth made me curious about the numbers. Again, no real reason purely for curiosities sake. Do not read anymore into it.

Obviously one's mortgage is not included in one's equity. (Realistic Home Value - Mortgage(s) = Equity) If you do not know use the Zillow Estimate, it does not need to exact.

We have never counted the house value in NW. I treat it like any other investment. It is only worth what I get the day I sell. It is paid off so why bother.

We aren’t high NW types, but our income allows regular global travel and budgeting hasn’t been used for a long time.

We are looking at a 40% step up in income next year. Managing the tax bite is the focus.

One day like the folks in Western NC had with Helene and life takes a major change. Be thankful for what you are able to do.

 

[Cpadave]

Paid off home 10%.

 

[RobLJ]

Around 23%, based on what is likely I could clear selling it. Which probably are going to do in early summer.

 

[sengsational]

Zillow over LNW is 15%

I was surprised how much the value of the house had gone up.

Or of course I could sell it tomorrow to one of those cash offer guys for 60% of what it would fetch with a standard real estate transaction. That would be great!

 

[Weazer]

15%

 

[WhenIsItTime]

Two houses. About 5%. No plans to move. Can't see were renting makes sense unless short term like 3 years or less.

 

[LakeRat1]

15% for our primary home in Florida, We have two other properties, a 2nd house in KS, and another we rent to a family member..... Total housing assets is 40% of our total assets

 

[Pointby2]

If we didn't live in California, my percentage wouldn't be so high.

 

[reneeh63]

...just under 20% but that's based on what seems to be an over-valuation by Zillow. But because I use that same value to calculate my net worth I guess the proportion is close. My last mortgage payment is in 10 months!

 

[strathglass]

Right around 33% for us (voted 50-75% by accident instead of 25-50%).

We have the option of downsizing into a smaller (but still nice) house, thus freeing up a decent chunk of cash, if required. So I see the high percentage in the house as a nice cushion / fallback option in case there is some issues with the investments (but I expect we should actually be OK there anyways).

 

[kgtest]

25%. You made me look back...
On January 2018 it was only 18% of our net worth.

But since then, our net worth has climbed a staggeting 437%. Not sure what all this means, but I'll take it!

 

[kgtest]

A lot of people had their homes destroyed by Helene. A friend of mine lost her home in Florida. Completely destroyed.

Total loss, after 0 insurance payouts?

I don't have flood insurance, but if my home flooded, that would be an act of god. I live uphill from a small lake...but again, for my home to be a complete and total loss a fire or a tornado would need to completely destroy it. And I am covered for up to $700k loss of the structure to replace it, plus another $250k for all of the belongings in the house...so hopefully the fire gets the cars in the garage too.

In all seriousness, my aunt and uncle and cousin had an almost total loss from Katrina...which was probably worse than just being an ACTUAL total loss. They lived in the mold infested walls while it was being rebuilt, uncle passed early after lots of lung /health problems.

Aunt is now just scraping by after losing his SS and military pensions.

Hurricanes are horrible. I feel bad for everyone that lost their livelyhoods. The worst part of a hurricane is the fabric of the community is gone afterwards. People move away, and move on from the destruction for others to deal with the aftermaths.

 

[equakesfan]

If we didn't live in California, my percentage wouldn't be so high.

I live in California so my primary residence is 24%. I also have a investment property in CA which is another 24%. I don't have earthquake insurance so if a big one hits I'm probably screwed....

 

[Sunset]

we look at it as our LTC bank. If one of us needs LTC then we sell and the other person rents an apartment nearby.

Not sure that is the best choice.
As then the other person ends up penniless before the first person goes on Medicaid once all the cash has been spent.

I think a better option would be a reverse mortgage, 2nd person keeps some equity and doesn't move, first person has cash to pay LTC and then go on Medicaid. When 2nd person needs LTC, then sell the house, pay off reverse mortgage and use remaining cash to pay for the 2nd (or both) LTC.

 

[old medic]

I'm figuring about 1/3.... using the tax value, my savings and DW savings are within $15K of each other. But thats not counting my pension, or DW pending pension account cash value which would drop it to 1/4...
But then again, even less since the house is half hers....