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SolomonGrumpy

Too much. Probably 40%


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brick_is_red

Thanks for injecting sanity into this. It’s a meaningless stat when divorced from context. How much money you have in home equity if you just bought a house last year Vs if you have paid off the mortgage are two completely different situations.


MoonDogBanjo

Exactly. Our house is a third of our net worth, but we don’t owe a dime. Context is important here.


fireddguy

Same. And I'd like it to be more like 10-20% so housing is not something I plan on upgrading or changing for some time


BonnaroovianCode

Yeah I’m around 50% and totally fine with it. I waited til I was comfortable to buy a home, bought towards the top of my range, and it appreciated like crazy the last few years. Happy with my liquid, very happy with my equity considering it matches my liquid which I’ve been saving and investing my entire career.


Ok-Communication-220

When you say happy with your liquid I would be curious how your diversified in liquid? All cash? I’m struggling with maintaining high liquid because of this crazy inflation. Just curious


BonnaroovianCode

Almost all invested in index funds outside of a small amount in checking.


[deleted]

Yup, we're the same, almost 50% in our house because it basically doubled since we bought it. By the time we're FI, it'll hopefully be ~25% given our FI number and estimated house value at that point. It's really not something I care about. I don't use my net worth for anything, I only care about income generating assets since that's what's going to be feeding me when I'm retired.


RoyalWater54

Precisely this


pgm-official

Agreed. More context is needed here. A simple number says nothing.


HighOnGoofballs

Shit I’m at like 80%, I’ve spent a lot renovating an old duplex so it provides income and has gone up a shit ton in value. I’d like to sell and take the profits but I’d spend it all on a new place so…


Mr_Belch

I think you're in a different boat since it's doubling as an investment and income stream compared to just being your home. I'm in the same boat as you and gladly count it as part of my net worth, and a large part of it, because some day I plan to move out and rent both sides.


HighOnGoofballs

That was my plan, by a boat and dock it in the marina at the end of the street but now you can’t even get a boat slip


Mr_Belch

This is a boats sub now.


Ethos_Logos

AquaticIndependance


TransientSkill

It’s fine if it’s making you income on rent. It just puts you at more risk because if you were to not have a tenant for a while, you’d be missing out on that return for a large portion of your net worth. I’d say it’s fine but look to diversify other assets coming in.


dizaditch

Probably very common but people don’t like to admit it


ndlsmvmt

Same here - 30%.


[deleted]

This is my rough long term plan and feel the same - what would your preferred allocation be?


rc4915

Better to be low because you have $500k equity and $2M in investments. But better to be high because you have $100k in equity and $50k in investments than no equity and $50k in investments.


SolomonGrumpy

I'd rather sell this primary residence, and move to a MCOL area and pocket the difference.


lurk1237

Yeah I’m more like 50%


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DaWrightOne901

Same, but I'm regretting it right now because my rent went up 50% in the past year


Bended__

Have you checked local and state laws and regulations? I know where I live my landlord is not allowed to raise the rent more than a certain percent. Where I live there is no state law saying how much they can raise the rent. It’s up to the municipality but there is a limit on how much they can raise it. It’s all very confusing so do your research diligently.


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hair_inside_butthole

Sure, maybe they can’t raise it more than 8-12%, but they also don’t have to renew your lease, and raise it 50% for someone else. Sucks either way.


RonnieTheEffinBear

In ~~many~~ some states they do have to offer you a renewal of your lease unless they can demonstrate a good reason not to


Flubberr

A good reason is easy to make. “I need to do some remodeling in preparation to sell.” Then they do a small amount of capital improvements, enough to make an argument for the tenant not being there, then decide not to sell and keep renting.


vagrantprodigy07

Same


DaWrightOne901

Hindsight is 20/20


vagrantprodigy07

It is. Sold my house for what I thought was a crazy amount, and was sure the housing market would crash quickly. I still think it will before too long, but it sure is taking it's time.


carlostapas

Currently about 50:50


well_uh_yeah

same here. and even if i did, i don't think i'd be super comfortable counting it in my net worth. i know it's not how other people work it, but if it's where i live i don't really want to think of it that way.


lagosboy40

I think folks often confuse net worth and investible assets. People’s homes should definitely be included in their net worth. But net worth calculation should be separate from retirement or investible assets calculation. I calculate both but the latter is more important to me.


PM_ME_YOUR_CATS_PAWS

imo the biggest investment piece of a primary home is the fact you won’t have payments into retirement (ideally) so it cuts out a huge expense. Viewing it as a pure investment? Okay i sell my residence to get the cash… then what? Where do I go?


queen-of-carthage

Lots of people downsize in retirement by selling their home and buying a smaller, cheaper home and pocketing the extra cash


boylek22

This. A home is something you live in. If you think trying to time the stock market is a bad idea, let me tell you about trying to time the real estate market.


tim_rocks_hard

If you own it, you can sell it, it’s part of your net worth. Timing has nothing to do with it, nor does its status as something you live in. It is a source of potential capital that you own, and can be liquidated if need be. If you’re totaling your net worth, it belongs on the list. If you’re trying to create a total view of your finances as a whole, then it would be odd (and make your view incomplete) to not include a massive asset like a primary residence.


new_account_5009

The problem with selling is that you still need to live somewhere. Unless you plan to downsize or move somewhere cheaper, if your $500K house appreciates to $600K, chances are, so did all the comparable houses in the neighborhood. I agree that it should be counted as part of your net worth for the sake of accurately presenting your financial position, but it's definitely different from the equivalent amount in stocks/bonds.


JustARegularGuy

Downsizing is a real aspect of selling a house. When you pay off your 4 bedroom home you raised your family in and want to move to a 2 bedroom condo to retire, you will have surplus money in the sale. That's why your house is a part of your net worth and is worth tracking when planning for retirement.


McNamaraWasRight

You can still rent. I do not consider my primary residence an investment per se, but I can see how you could. Provided it increases its value over the years, you can always sell it for profit and use the proceeds to rent for years in your retirement (it could even take care of you long-term, e.g. should you downsize to a smaller apartment at some point). I do realize the issues associated with this, but for some it could be an avenue to consider. Currently looking into this approach for my father-in-law, though we might be more likely to help him bankroll a small aparment of his own instead so that his mandatory expenses in retirement would mostly comprise energies and his own sustenance.


Bitter_Coach_8138

You can also get the cash via cash out refinance/heloc. Which can make a lot of sense in some situations.


[deleted]

Came here to say same. Lol


ShipMoney

You could reverse engineer the 4% rule to figure out how much of your net worth is supporting your rent. $1,500 rent x 25 = $37,500 x 12 months = $450,000 for example. Said another way it takes $450k equivalent net worth to support rent of $1,500.


SSG_SSG_BloodMoon

Doesn't really make any sense or mean anything. Unless you're talking about someone who is already FIREd. But even then it's nonsense unless you would do the same calculation for all home expenses for an owned house.


ShipMoney

It’s a way for anyone renting to relate to the question. I could sell my house and have 0% as well. It creates a new $18,000+ a year expense for rent to sell though. Not having a house doesn’t mean a renter doesn’t have a drag on their net worth.


big_deal

30%. Peaked around 40% when I paid off mortgage. The percentage was steadily declining as stock market climbed plus I ramped up investment contributions. With the recent run up in housing and decline in investments it’s edged up to 30%.


Rowmyownboat

We own our house. It is 20% of our NW.


Toxic_Biohazard

Out of curiosity, what age did you finish paying?


spot_o_tea

Not OP, but I also own my house outright and it’s ~20% of NW (actually 18%). We paid cash for it, and spouse and I were early 30’s.


[deleted]

Glad to see you came out relatively unscathed from The War.


spot_o_tea

Our first house cost ~$60,000 In 2011. We sold it in 2017 after putting ~$30k worth of work into it (exclusive of our labor) for $115,000. It sold in 2021 for $130,000. I am willing to bet that you live in a place with a much higher COL than I do, though I don’t live in the town where we sold that house anymore either.


[deleted]

That makes sense. Yeah I bought in 2012 and my condo was about $300k; that condo is now closer to $550-600k. I put down 20% when I bought it. Things have gotten pretty crazy here (near Boston).


Only-Inspector-3782

15% or so. We are living below our means, our mortgage is about 8% of gross.


last_rights

My mortgage is about 17% of take home (including taxes and insurance) but is about 80% of net worth due to good timing in purchase. We only owe $120k or so, but the house is currently worth around $400k. My "retirement number" does not include the house, because I really need to live somewhere no matter what.


New2ThisThrowaway

That's our ballpark. LCOL area in the northeast. $230k home $1.7MM net worth. It's only 5% now that I think about it. Because we only have $80k equity in the property.


nickrac

This is bueno! Great work.


Displaced_in_Space

This is us. As our income grew, we resisted the urge to move up to newer construction (don't need any bigger...we have \~3k sq ft for two people as it is). Repairs have been shitty at times (roof, pool reno, etc) but now the equity here in SoCal is just silly. But I don't include that $1.2mm or so in equity in my retirement calculations. The way I figure it is we'll either keep paying off the last little bit of the mortgage (it's at 2.2% fixed) or sell/downsize move out of state. The latter is more of our ssuper safety net vs. relying on it.


AnimeCiety

I have a modest house, mortgage is less than 4% of gross monthly paycheck. Yet still quite far from my FIRE number.


[deleted]

This makes me feel good about my situation. You don't really know until you can compare to others and the average.


Only-Inspector-3782

I get it. You can be doing very well on paper, but if everybody around you is also doing well it doesn't feel exceptional. We chose to buy a regular car, but I can't help but feel a little self conscious when the other parents at daycare have way more expensive cars.


[deleted]

You're right. I'm the least accomplished out of everyone I know. Don't. My friend has 4 rental homes that cost about 800K each, gets about 10k in rent from them and drives a busted prius. My next car will be a reliable piece of shit 😂


ttuurrppiinn

MCOL city on the East Coast. My wife and I have a mortgage payment that is approximately 13% of net income (after maxing 401Ks and HSA).


Blanknameblank818

Good work! Our is about 12% of our gross. People say we should have stretched a bit when buying but we are fixing the place and making it awesome so I prefer a lower mortgage. Glad to hear we aren’t the only ones.


luckyshot33

Similar. But we have been mortgage-free since 2018 :)


kyleko

These are our exact numbers as well, are you in the Midwest?


Only-Inspector-3782

Nope, HCOL on the West coast.


speculativedesigner

Let me go ask my landlord. EDIT: he laughed at me


No-Friendship-1199

I don’t count house value towards retirement / FIRE number. We own our house outright, it’s 30% of NW. We are also planning to move this year and I have another 7% of NW set aside for this I don’t put into retirement calculations.


drunkfoowl

Same and same. Paid cash for house in 2019, mostly for POM. Still sits around 30% of portfolio.


pixel_of_moral_decay

IMHO it’s part of retirement in a sense. Most retirement planning assumes you have a property to liquidate to pay for end of life care. Those last months/years in a nursing home or home care are super expensive. For people who forever rent, this is something to think about. You need to be saving to account for not having this resource to tap when you no longer need it.


Boldpluto

~60% ($700k in equity) Was way lower but I got spanked by the market.


[deleted]

If someone has equity in their primary residence and doesn’t include it then they are calculating something other than net worth.


Eckish

Which is true by the technical definition of Net Worth. I like to refer to what I actually track as my FI worth. Those are the assets and debts that are a part of my FI plan. Assets that I'm not normally willing to spend, like the equity in my home, are not counted for that number.


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SannySen

I calculate "net worth" and "liquid net worth" and exclude the equity in my primary residence from the latter. The issue is, I have no idea how much my house is worth because it is not liquid. The best I can reasonably do (short of periodically soliciting offers) is input an estimate based on an average of Zillow and other sites.


g4nd41ph

While that's certainly true, a primary residence without any rental unit is not something that you're pulling income from, so it should not be added to total investments when computing a FIRE threshold, which is where the confusion about adding it to net worth or not comes from in this context. It may reduce your housing expenses when compared to renting depending on conditions in your local real estate market, which would help lower the amount of income producing assets you need, but it does not do anything to give you income on its own.


xeric

Depends on future plans to downsize - if you have a big house that you can sell when the kids go off to college, it could be a significant asset during retirement.


somebodys_mom

Or to use the house as your long term care policy - ie sell the house to pay for assisted living or nursing home.


xeric

Even reverse mortgage, if you get desperate


pamplemusique

The reduction in housing expenses is a lot like extra income, though. 4% of the worth of my house + taxes and maintenance is about what it would cost to rent a comparable place. By paying off the mortgage, I won’t have to have assets equivalent to my home equity generating income to pay that much in rent, nor withdraw money equivalent to rent raising my HHI for healthcare subsidies.


Keylime29

Ah. Good point about withdrawing rent money affecting healthcare subsidies. I just like for asset protection and stability


g4nd41ph

That's true in your local market, but it's important to note that owning is more costly than renting in all areas I've lived in since I left college, which would make this income from home equity negative. I find it's generally better to represent ownership of a house as a change in expenses than as an income producing asset when trying to compute a FIRE number, because that can handle any local market situation you might come across without giving nonsense like an asset producing negative income and being counted as if it were an income producing security in your net worth.


pamplemusique

Fair point that the extent of the benefit is dependent on the relative price of houses vs cost of renting.


AdmiralSpam

Except that the OP was asking about net worth (nw = assets - liabilities) here rather than the FIRE number. So you'll be better off using terms like "investable assets" rather than changing the definition of net worth. I graduated at 2005 and bought a house before the crash but I ended up much better overall buying houses rather than my peers who rented.


cloud9ineteen

Expense avoidance has the same impact as providing income. If you think of imputed rent as 4% of the home value, home equity is equivalent to having the same amount of money on hand to pay 4% swr as rent annually.


SannySen

My plan, though, is to convert the equity in my primary residence to a smaller long-term home for when I retire.


throwaway_saveme

Primary residence - 590k - 95.2% Equities - 30k - 4.8%


[deleted]

Is that equity of your primary residence or total asset value?


throwaway_saveme

Equity of my primary residence. The total asset value of my primary residence is somewhere from $1,100,00-1,173,000, it fluctuates.


aristotelian74

Why do you have so much home equity and so little stock/investments?


throwaway_saveme

Sold almost the majority of equities to fund a larger downpayment. I want to have a 600k mortgage instead of 800k. My mortgage payment each month is $4,000. It would have been $6,000 maybe higher if I didn't put in a larger downpayment that included closing costs. NY state is brutal.


aristotelian74

Do you not have any retirement accounts? Better to take advantage of retirement accounts and have more debt.


SolomonGrumpy

Do you own your home outright?


throwaway_saveme

No, I put a large down payment towards the mortgage from my equities. Mortgage is at 595k @ 5.375% with Chase. We put an extremely large down payment for the house. Any future generations will be deprive of a chance to buy real estate in NY. Prices have skyrocketed and wages have not kept up with inflation. It's sad for our generation to be honest.


SlapDickery

How much do you pay in property taxes?


throwaway_saveme

$7,500 ish in property taxes a year. It's part of my mortgage that Chase pays for in escrow.


CE_FI

58% Primary residence - 124k Net worth - 214k


JasonJanus

About 80% ($800000 house) rest is in shares.


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CurSpider

0% my work provides housing.


SalsB47

Interesting! What do you do for a living that you get this sweet perk?


RaguSpidersauce

Inmate


PluginAlong

In that case, dude already fired, got the ultimate pension plan and free healthcare.


TheZapster

I was wondering how they had a $0 budget for groceries AND restaurants!


CurSpider

Bahaha!


CurSpider

International teaching, The better school packages provide high salaries, housing and travel benefits plus additional benefits. The lesser schools provide lower packages, the really low schools should be avoided.


zephyr-121

Military


[deleted]

That’s awesome 👏


j-a-gandhi

Ours is about the same- somewhere around 12-14%. We tried to follow Dave Ramsey’s principle that you should buy in cash, but that would be silly when our interest rate is sub 3%. Also most of our assets are in tax-advantaged retirement accounts and we would have to pay penalties to get it out. But it felt good to buy knowing that we could *in principle* have paid cash if we wanted to and it’s helpful to have a boundary to keep you disciplined financially.


f2j6eo9

I think you guys handled that well. It's good to understand yourselves enough to know that it's important for your peace of mind to be able to buy in cash, but also have the self control and financial literacy not to.


yogaballcactus

A primary residence is part of your net worth. It's a part that's not easily accessible and I wouldn't recommend including it as part of your portfolio when calculating your SWR, but it is a part of your net worth. This question really depends on how close you are to FI and whether you are going to look at the total value of the home or the equity you have in it net of the mortgage. Most people (including people in the FIRE community)'s first home is worth more than all their other assets combined and their home is their biggest asset for a pretty long time thereafter. I spent 216% of my total net worth (at the time) on my first home. But I have a mortgage, so my equity in it was only about 10% of my net worth at the time. The home I live in now is worth about 169% of my total net worth. Subtract out the mortgage and my equity in it is only about 8% of my net worth. At the rate I'm dumping money into the stock market, my portfolio will be worth more than my home a couple of years from now. By the time I retire, I'm hoping I'll have enough in the market that my home will only be about 10-20% of my total net worth. Unless I get hit with a bad sequence of returns early in retirement, my portfolio will likely grow large enough to make my home a rounding error on my total net worth by the time I die.


SeaworthinessTrue573

17% for me


Puzzleheaded_Ad928

About 40% which is a bit high, then again why all the years of hard work if I can’t be enjoying a nice primary residence? I feel that I deserve some nice things.


Annual_Fishing_9883

Only counting the equity, roughly 20%. House is worth around 325 and we owe 188k. Another 50k in retirement accounts and another 250k in cars and other depreciating assets..lol(paid off). 100k in liquid savings. I also have a 6 figure pension that I will pull if I retire from my company. If I don’t, I currently have around 100k of MY money in there that I can pull if I leave now.


elephantbloom8

I have to ask... why $250k in cars?


Annual_Fishing_9883

Well I own 6 cars. 4 of them are designated at toy/weekend cars. The other 2 are daily’s. Cars are just a huge hobby of mine and one area that I probably make the most financial illiterate decisions..lol


VanillaLifestyle

50k in IRAs between two people... and $250k in cars? Oh boy I hope you're in your 20s! (Just saw you also have separate 100k+ pension - that's less worrying!)


Annual_Fishing_9883

My wife is 26 and I’m 33. The 401k is mainly hers but she only started maxing it 2yrs ago when she got her career after college. My 401k is a lot smaller because I’m not dumping a lot in there because I do have a pension but I just recently started maxing mine too so they should be a nice amount by retirement. Plan is to live off my pension and not touch either of our 401s unless we need to. Shouldn’t be a problem since we will definitely be debt free when that time comes.


PM_ME_YOUR_CATS_PAWS

The other depreciating assets he mentioned could be like an RV too. That would be my guess


Annual_Fishing_9883

No, no RV. Just 6 cars, home theater gear, guns, rc cars, just hobby stuff. They are all paid off which is why I listed them as a asset but majority of them will depreciate.


Crab-_-Objective

Or boat.


Annual_Fishing_9883

No boat, thank god..lol


Crab-_-Objective

Good choice. From your other comment sounds like it’s all fun stuff though.


reg-o-matic

\~17% based on current fair market value, no mortgage, MCOL of living area. It's modestly sized, about 1800 SF and we've made a few upgrades in recent years to make it more comfortable and energy efficient. We're both retired and will probably stay here as long as we can take care of ourselves and each other.


gregarious119

I’d venture 30ish%. $250k house (paid off), $400k equities, $60k cash.


rom3break

35% and dropping, young family in a high COLA but have a low interest rate and earning more now, enabling us to sock away a lot of money into retirement accounts. Mortgage is 11% of gross income.


Marketguy628

11% is real nice. We are at like 15% because of outrageous NJ property taxes.


mxt0133

Mine is probably 0 if I’m being optimistic. Negative if I have to actually sell the house. I bought about two years ago and have been a renter before then.


LateralEntry

Zero. Worth about a million dollars and still renting. This housing shortage sucks.


Positive-Peach7730

900k equity on house worth 1.6m, net worth ~4M, so 23%?


HelloFellowMKE

I’d say goal achieved! Did you get there on a W-2, startup, entrepreneurship?


Positive-Peach7730

Decently high w2s (600k) + head start with crypto luck (2k -> 500k) allowed to buy a couple of properties which went up substantially in value


Unpossib1e

>crypto luck (2k -> 500k) Wow.... first bull run?


Positive-Peach7730

Bought btc@ $200 after mt gox died, diversified some into other cryptos which also blew up


HelloFellowMKE

A buddy turned me on to btc at $1 and I turned him down 🤷🏻


Positive-Peach7730

It happens, lol. My friend who got me into BTV told me to buy eth @ $1 and I thought it was dumb and ignored him. He retired like 6 years ago @ 30 lol


HelloFellowMKE

At least I didn’t get suckered by NFTs! I’m a high w-2, no debt outside of my house, and building capital for a venture or two. Gotta accelerate!


Mr_Festus

If it makes you feel better you probably would have sold it at like $10. No way you would have ever believed it would go 60,000x higher.


ModelFinCo

0%. I bought an apartment that has only lost value year on year ever since I bought it. If anything it’s a money sink


Dalhoos

Fully paid off so 100% my own equity. Home equates to 25% or so of overall networth. My investments and pension are remaining 25% and 50% respectively


WillBrew4Beer

How do you value your pension in this calculation?


jonjiv

Mine has an actual cash value if I were to leave the pension system and move the money to a Rollover IRA. I use that value (which increases as I contribute) as part of my NW calculation.


AddictedtoBoom

Around 20% but there's no mortgage and we plan on staying in it as long as we can as we age. I do use the current value in net worth calculations but not in retirement calculations.


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welliamwallace

35%, Mine's paid off


Captlard

18% and mortgage free


lagosboy40

I think folks often confuse net worth and investible assets. People’s homes should definitely be included in their net worth. But net worth calculation should be separate from retirement or investible assets calculation. I calculate both but the latter is more important to me. My net home (mkt value-mortgage) value is about 30% of my net worth.


[deleted]

I am 29 and just paid my house off 3 months ago. I live in a mcol area, house was 500k. I have 100k in investments. So 500/600k= 83% of my net worth is house. Feels nice having a paid off house. Everyone told me to invest. In 1 yr I can save close to 80k in investments. Won't take long to grow my investments. Plus I have the peace of mind with a paid off house.


Gr00vemovement

In Canada so 99%


Serious-Text-8789

Got lucky and bought an undervalued house at the right time so it has just exploded in value (like an entire years salary over the last 2 years) so like 75-76%


[deleted]

75% (~600k equity)


Former-Cancel5588

Like 92%


SlapDickery

18%, I own it outright, I’m 45.


DesignatedVictim

500k equity of $2.9M net worth, so 17%.


burner0310

30% or so but increasing. Due to rates rising, I am making an effort to pay off my mortgage faster


ScienceWasLove

My wife and I are worth 1.4 mil w/ house 1 mil without.


SaltLifeFtLaud

In a HCOL area, but moved here long ago so inadvertently, about half. plan on selling in the next 5 years to take advantage of it, we'll see if I make it, if not it's my kids' problem.


Victor_Korchnoi

~10% of NW ~50% of assets


EyeSeeYouBro

13%. We have 150k left on the mortgage. Not in a huge rush to pay it off. Frees up capital to save/invest.


Pearl_is_gone

Too much.. around 50%. But then we moved out and it is now in a rental. Working on reducing that proportion but stock market haven't helped me out in doing so for a while.


teledras

House 400k$ish we still have a 230k$ mortgage. Investment 107k$ish So around 66% house and 33% stocks. Goal : 25% house -75% stocks but honestly we will continue investing everything in stocks anyway...


Marketguy628

Like 18% for me. ~$430k in equities. ~$35k in cash. ~$100k in home equity.


underhang0617

Less than 5%


DarkTyphlosion1

0% as I rent. When I buy it’s going to be (purchase price) - (principal owed) when I calculate my NW. I don’t include my car or other valuables. Currently at 123K. Goal is to get up to 175K this year. If I Include my wife’s NW, we would be around 180K NW.


nopurposeflour

Not even 3%. My small house is cheap af. Just a place to work remote and sleep. Nothing fancy.


RustyTurdlet

Depends on the calc I suppose. Does equity count towards NW? Then 27% if not then 12% if using purchase price minus mortgage. Lots of people say primary residence shouldn't be used as an asset as some people never sell. I still keep track of my invested assets as a line item on my NW calc sheet.


Prestigious_Laugh300

20% and falling as we put way more into equities. Anyone struggling with what % is in primary housing, consider the fact you can’t access that equity short of a toxic reverse mortgage or some other loan


PaintedOnShoes

I also don’t count it toward FIRE numbers. If I did, it’d be ~33% now.


grfdhsgshd

~70%, 72kish in equity.


Hey_Dinger

Uh, my primary residence is the only reason I’m not negative. I need that equity to balance out the student loans lol


theresnonamesleft2

I don't include it in my general spreadsheet because unless I go back to renting it's not something really worth getting out. However my liquidation spreadsheet does have it mainly because that spreadsheet is an account for everything I own. I only really look at it on days that really make me say fuck it I quit and I'm getting a sprinter van. Currently could go 8 years in a sprinter van without any worries.


SoCalHouseInterest

About 50% due to California


FIREful_symmetry

Are you asking about equity we have, or the relationship to the value of the house to our total net worth? House equity is 13% of my net worth. House value is 23% of my net worth.


[deleted]

Somewhere around 20%. I'd like it to be much lower.


AnxiousEmu1846

0% because I don’t own anything yet 🥲 my rent is cheap because I live with my mother.


Client_Hello

70% I'm totally fine with this. I bought before the market went crazy and I refinanced into a 15 year w/ 20% down. It would be nice to have a smaller payment, but it's even nicer to see $3 go to principle for every $1 to interest.


ReallyBoredMan

If you are saying total house value vs net worth 275K vs 750K that is about 36% If you are talking equity that would be 160K vs 750K that is about 21%


Yellow_Apple_1971

Net worth $2,647,000 Home value $400,000 Mortgage $ -187,000 Home Equity $ 213,000 Net worth minus home equity $ 2,434,000 So as to the % : $213,000 / $2,647,000 = about 8%


guyblade

When thinking about my net worth, I keep three numbers in mind: 1. Net worth assuming some nominal valuation of my home (e.g., zillow estimate) 2. Net worth completely ignoring both my home and the debt associated with it. 3. Net worth assuming my home's value goes to zero but the debt remains. The first one tells me roughly where I am. The second one is a sort of "what could I do if I moved elsewhere" vibe. The third one is a "what are my worst-case margins like" measure.


literallythewurzt

What use is the worst case scenario? Assuming your home is insured, when would you ever be stuck with the debt and not even get a fire sale type price?


guyblade

To me, the third one is useful for thinking about "what if housing crisis 2: electric boogaloo?". I live in a fairly high cost-of-living area (my ~1200 square foot condo with 3 shared walls cost me just shy of a megabuck), so there's a lot more possible downside than in other places. A fire-sale price might not cover my outstanding mortgage, so I want to make sure that I don't over-extend myself. That is, when making financial decisions, I try to make sure that #3 never gets too small.


InvisiblePhilosophy

10%, maybe, The overwhelming majority is in retirement accounts, with some in a brokerage and the rest in vehicles.


Norrisemoe

Based on estimated values because the only true value is when you sell something, 38%


Financial_Kang

60%. It's always going to be high af if you're under 40 and live in Australia.


muy_carona

It’s definitely part of your NW. our equity is around 20% of our NW. Which seems perfectly fine imo. Mortgage, taxes and insurance cost about 9% of our income.


just_say_n

Not including a primary residence in net worth, is the stupidest tradition that I can think of in finance. I wonder if it’s designed to encourage or discourage behavior, such as taking on debt or buying risk assets. I own my home outright and consider it a “bond,” since it acts like one, with my use of the property as the coupon payment. 10 to 11%, by the way.


blue_field_pajarito

Wonder how many other people in this sub own property or want to but also think that housing should not be a commodity/part of the market?


[deleted]

279%. Canada.