What percentage of your net worth is your home equity?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Locked
Topic Author
Ed_Sandwich
Posts: 147
Joined: Mon Mar 20, 2017 12:47 pm

What percentage of your net worth is your home equity?

Post by Ed_Sandwich » Tue Dec 11, 2018 4:18 pm

Mine is around 28%, curious about other bogleheads.

User avatar
Blueskies123
Posts: 605
Joined: Sat Nov 15, 2014 7:18 pm
Location: South Florida

Re: What percentage of your net worth is your home equity?

Post by Blueskies123 » Tue Dec 11, 2018 4:20 pm

My house is paid off. I do not think of my house as part of my portfolio. I cannot spend it to buy food, I would have to move.
If you find yourself in a hole, stop digging

JohnFiscal
Posts: 766
Joined: Mon Jan 06, 2014 4:28 pm
Location: Florida

Re: What percentage of your net worth is your home equity?

Post by JohnFiscal » Tue Dec 11, 2018 4:21 pm

I think there was a recent thread with same question, maybe a few months ago.

My answer then, and now, is that I just retired at my FRA and my % for home equity is about 1/6 or 16.67%

UpperNwGuy
Posts: 2943
Joined: Sun Oct 08, 2017 7:16 pm

Re: What percentage of your net worth is your home equity?

Post by UpperNwGuy » Tue Dec 11, 2018 4:22 pm

Zero. I rent.

User avatar
ResearchMed
Posts: 9466
Joined: Fri Dec 26, 2008 11:25 pm

Re: What percentage of your net worth is your home equity?

Post by ResearchMed » Tue Dec 11, 2018 4:23 pm

Ed_Sandwich wrote:
Tue Dec 11, 2018 4:18 pm
Mine is around 28%, curious about other bogleheads.
Care to rephrase this so it is somehow "actionable"?

Maybe something like, "What percentage of your net worth is your home equity, and how can it best be used in retirement without moving?"
(Hint: HELOC or Reverse Mortgage, but who knows what answers there might be!? :wink: )

RM
This signature is a placebo. You are in the control group.

KlangFool
Posts: 14724
Joined: Sat Oct 11, 2008 12:35 pm

Re: What percentage of your net worth is your home equity?

Post by KlangFool » Tue Dec 11, 2018 4:28 pm

OP,

I do not count my house as part of my net worth. If someone is counting the house as part of their net worth, they had bought too much house.

KlangFool

User avatar
ResearchMed
Posts: 9466
Joined: Fri Dec 26, 2008 11:25 pm

Re: What percentage of your net worth is your home equity?

Post by ResearchMed » Tue Dec 11, 2018 4:32 pm

KlangFool wrote:
Tue Dec 11, 2018 4:28 pm
OP,

I do not count my house as part of my net worth. If someone is counting the house as part of their net worth, they had bought too much house.

KlangFool
Let's not start *that* discussion/argument again here.
That equity IS there (assuming there is equity), so if some want to include it in net worth, fine.
For those who don't, then it would be zero percent.
And they'd have little or no interest in this topic, except as a curiosity.
Done.

RM
This signature is a placebo. You are in the control group.

JohnFiscal
Posts: 766
Joined: Mon Jan 06, 2014 4:28 pm
Location: Florida

Re: What percentage of your net worth is your home equity?

Post by JohnFiscal » Tue Dec 11, 2018 4:32 pm

ResearchMed wrote:
Tue Dec 11, 2018 4:23 pm
Ed_Sandwich wrote:
Tue Dec 11, 2018 4:18 pm
Mine is around 28%, curious about other bogleheads.
Care to rephrase this so it is somehow "actionable"?

Maybe something like, "What percentage of your net worth is your home equity, and how can it best be used in retirement without moving?"
(Hint: HELOC or Reverse Mortgage, but who knows what answers there might be!? :wink: )

RM

I agree with this. The raw data points are pretty much useless unless other positions are known...age relative to retirement (I would expect the housing % to increase closer to retirement as a mortgage gets paid down), perhaps income range (I would expect the housing % to decrease a bit as income and total assets increase). Of course, my "expectations" of the data might be proved wrong. But I think this sort of info is needed as well. That was my thought with the previous thread.

User avatar
Artful Dodger
Posts: 810
Joined: Thu Oct 20, 2016 12:56 pm

Re: What percentage of your net worth is your home equity?

Post by Artful Dodger » Tue Dec 11, 2018 4:38 pm

Home Equity of home as % of net worth = 11.5%
Market Value of home as % of net worth = 14.6%

User avatar
Nate79
Posts: 5334
Joined: Thu Aug 11, 2016 6:24 pm
Location: Delaware

Re: What percentage of your net worth is your home equity?

Post by Nate79 » Tue Dec 11, 2018 4:41 pm

Home equity IS part of your net worth. So therefore the calculation is straightforward but whether you decide to utilize this information in any meaningful way is not clear.

20% approx for us.

Jack FFR1846
Posts: 10819
Joined: Tue Dec 31, 2013 7:05 am
Location: 26 miles, 385 yards west of Copley Square

Re: What percentage of your net worth is your home equity?

Post by Jack FFR1846 » Tue Dec 11, 2018 4:43 pm

About 1/6. So what? About 16.67%.
Bogle: Smart Beta is stupid

Pigeye Brewster
Posts: 399
Joined: Thu Oct 05, 2017 7:33 pm

Re: What percentage of your net worth is your home equity?

Post by Pigeye Brewster » Tue Dec 11, 2018 4:44 pm

Approximately 5%.
Last edited by Pigeye Brewster on Tue Dec 11, 2018 4:56 pm, edited 1 time in total.

J295
Posts: 2246
Joined: Sun Jan 01, 2012 11:40 pm

Re: What percentage of your net worth is your home equity?

Post by J295 » Tue Dec 11, 2018 4:44 pm

Paid for home is 16% of our net worth.

Tdubs
Posts: 900
Joined: Tue Apr 24, 2018 7:50 pm

Re: What percentage of your net worth is your home equity?

Post by Tdubs » Tue Dec 11, 2018 4:48 pm

Still paying it down, but I'd say 16 percent.

stoptothink
Posts: 6791
Joined: Fri Dec 31, 2010 9:53 am

Re: What percentage of your net worth is your home equity?

Post by stoptothink » Tue Dec 11, 2018 4:53 pm

We owe ~$90k on a home worth ~$250k, so approximately 15%.

MiddleOfTheRoad
Posts: 247
Joined: Fri Jul 21, 2017 11:19 am

Re: What percentage of your net worth is your home equity?

Post by MiddleOfTheRoad » Tue Dec 11, 2018 4:53 pm

Bogleheads networth levels:

Level 1: include everything in one’s possessions in the net worth, including car equity, furnitures, bicycle etc. All investable/liquid assets.

Level 2: only include the “big items” ie. house, vacation home, collectibles. And all investable/liquid assets.

Level 3: only include investable/liquid assets

Level 4: only include investable assets. Don’t even count the emrgency fund or cash in bank accounts.

:D

User avatar
Sandtrap
Posts: 8705
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii No Ka Oi , N. Arizona

Re: What percentage of your net worth is your home equity?

Post by Sandtrap » Tue Dec 11, 2018 4:55 pm

KlangFool wrote:
Tue Dec 11, 2018 4:28 pm
OP,

I do not count my house as part of my net worth. If someone is counting the house as part of their net worth, they had bought too much house.

KlangFool
Actionably: I cannot pay my retirement expenses with the home I live in. And, it's not counted as net worth. And, is not related to my allocation nor IPS though it is paid for.

How is home equity as a percentage of net worth actionable toward financial planning?
Wiki Bogleheads Wiki: Everything You Need to Know

User avatar
Sandtrap
Posts: 8705
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii No Ka Oi , N. Arizona

Re: What percentage of your net worth is your home equity?

Post by Sandtrap » Tue Dec 11, 2018 4:55 pm

MiddleOfTheRoad wrote:
Tue Dec 11, 2018 4:53 pm
Bogleheads networth levels:

Level 1: include everything in one’s possessions in the net worth, including car equity, furnitures, bicycle etc. All investable/liquid assets.

Level 2: only include the “big items” ie. house, vacation home, collectibles. And all investable/liquid assets.

Level 3: only include investable/liquid assets

Level 4: only include investable assets. Don’t even count the emrgency fund or cash in bank accounts.

:D
Level 5: ????
Wiki Bogleheads Wiki: Everything You Need to Know

JBTX
Posts: 5769
Joined: Wed Jul 26, 2017 12:46 pm

Re: What percentage of your net worth is your home equity?

Post by JBTX » Tue Dec 11, 2018 4:55 pm

less than 10%.

The problem with this metric it give little insight into the leverage/home value risk. It may mean that house is modest compared to portfolio. Or it may mean that you have a large house that is heavily financed.

$1m net worth.

Scen A:

$900k investments
$200k home
($100k) mortgage
$1m net worth


Scen B:

$900k investments
$900k home
(800k) mortgage
$1M net worth.

Thegame14
Posts: 1357
Joined: Mon May 07, 2018 11:53 am

Re: What percentage of your net worth is your home equity?

Post by Thegame14 » Tue Dec 11, 2018 4:58 pm

39YO, Home equity 220K, 401K 260K, Cash 50K so I guess that is about 41.5%. I assume this percentage is higher due to my age.

michaeljc70
Posts: 6091
Joined: Thu Oct 15, 2015 3:53 pm

Re: What percentage of your net worth is your home equity?

Post by michaeljc70 » Tue Dec 11, 2018 5:08 pm

Around 25%.

LiterallyIronic
Posts: 1353
Joined: Sat Dec 05, 2015 10:36 am

Re: What percentage of your net worth is your home equity?

Post by LiterallyIronic » Tue Dec 11, 2018 5:11 pm

Cash on Hand: $14,000
Retirement Accounts: $67,000
Home Equity: $99,000.

Looks like $99,000 / $180,000 = 55%.

Looking forward to the day where the retirement accounts are bigger than the home equity. But even though I'm putting in 25% of income toward retirement, the equity is growing faster (supposedly +$20k over the last three months, according to Zillow).

michaeljc70
Posts: 6091
Joined: Thu Oct 15, 2015 3:53 pm

Re: What percentage of your net worth is your home equity?

Post by michaeljc70 » Tue Dec 11, 2018 5:11 pm

Sandtrap wrote:
Tue Dec 11, 2018 4:55 pm
KlangFool wrote:
Tue Dec 11, 2018 4:28 pm
OP,

I do not count my house as part of my net worth. If someone is counting the house as part of their net worth, they had bought too much house.

KlangFool
Actionably: I cannot pay my retirement expenses with the home I live in. And, it's not counted as net worth. And, is not related to my allocation nor IPS though it is paid for.

How is home equity as a percentage of net worth actionable toward financial planning?
Of course you can. Reverse mortgage. Alternatively it can be sold and you can move to a rental.

It is part of your net worth. Is someone that has $1 million in investments (no debt) in the same financial position as someone that has $1 million in investments (no debt) and a $500k paid off house? You may not count it as part of your retirement plan or assets, but the definition of net worth is pretty simple and universal.

Gardner's Son
Posts: 28
Joined: Mon Jun 11, 2018 8:43 am

Re: What percentage of your net worth is your home equity?

Post by Gardner's Son » Tue Dec 11, 2018 5:13 pm

Ours is 20%.
    We are essentially retired, no debt.
      44% in investments.
        36% in commercial property.
          Cash flow over $100,000 in retirement/SS/RMD/part-time jobs. Have more than we need, so have been helping out our children buying their initial homes. Still working because I want to stay productive and enjoy helping others -- my fellow teachers.
          Last edited by Gardner's Son on Tue Dec 11, 2018 7:08 pm, edited 4 times in total.

          CMD1
          Posts: 94
          Joined: Tue Nov 28, 2017 8:10 pm

          Re: What percentage of your net worth is your home equity?

          Post by CMD1 » Tue Dec 11, 2018 5:15 pm

          Are you taking into account net equity (what cash you would take out if you sold today, ie - in most areas the transaction cost will be 7-10% when you sell your home the traditional way through a realtor) or simply value minus mortgage? In HCL markets the difference could amount to $100k for many.

          J295
          Posts: 2246
          Joined: Sun Jan 01, 2012 11:40 pm

          Re: What percentage of your net worth is your home equity?

          Post by J295 » Tue Dec 11, 2018 5:15 pm

          by Sandtrap » Tue Dec 11, 2018 3:55 pm

          KlangFool wrote: ↑Tue Dec 11, 2018 3:28 pm
          OP,

          I do not count my house as part of my net worth. If someone is counting the house as part of their net worth, they had bought too much house.

          KlangFool
          Actionably: I cannot pay my retirement expenses with the home I live in. And, it's not counted as net worth. And, is not related to my allocation nor IPS though it is paid for.

          How is home equity as a percentage of net worth actionable toward financial planning?
          Interesting.

          I don't need to but I certainly could pay my retirement expenses and any other costs I choose to pay with my home by taking out a loan. It is not part of my allocation, but it effects how I set my allocation.

          Actionable to financial planning? Hmmm .... if a relative said to me I don't count my paid for San Francisco home where i live which is valued at $5 million as an asset or consider it in my financial plans I would scratch my head, especially if this came from an 85 year old single person who plans to transition to other living arrangements in the next three years. Should they not count it and refuse purchase airline tickets to visit family on holidays and special occasions as part of their financial planning because they "can't afford it" because they don't have the cash flow from SS and other investments?

          KF ... say in my example this relative had lived in SF for 55 years and enjoyed the appreciation that has happened there during this time .... under your strict definition if he/she chooses to count it in net worth then they "had bought too much house."

          No one has to consider it in their allocations or any other matter related to their financial life if they choose to ignore it. That's their choice just as they can ignore SS, life insurance, or anything else in their planning if they choose. We on the board are re-plowing old ground here on the NW dialogue. The fact is under any reasonable definition the value of an asset is in fact part of a person's net worth.
          Last edited by J295 on Tue Dec 11, 2018 5:18 pm, edited 2 times in total.

          ponyboy
          Posts: 817
          Joined: Fri Feb 06, 2015 10:39 am

          Re: What percentage of your net worth is your home equity?

          Post by ponyboy » Tue Dec 11, 2018 5:16 pm

          I dont include my home as part of my net worth.

          Those who do typically have lower savings/investments...and it just sounds better when you include your home.

          michaeljc70
          Posts: 6091
          Joined: Thu Oct 15, 2015 3:53 pm

          Re: What percentage of your net worth is your home equity?

          Post by michaeljc70 » Tue Dec 11, 2018 5:19 pm

          ponyboy wrote:
          Tue Dec 11, 2018 5:16 pm
          I dont include my home as part of my net worth.

          Those who do typically have lower savings/investments...and it just sounds better when you include your home.
          Or they are following the definition of net worth....assets minus liabilities.

          User avatar
          ResearchMed
          Posts: 9466
          Joined: Fri Dec 26, 2008 11:25 pm

          Re: What percentage of your net worth is your home equity?

          Post by ResearchMed » Tue Dec 11, 2018 5:24 pm

          ponyboy wrote:
          Tue Dec 11, 2018 5:16 pm
          I dont include my home as part of my net worth.

          Those who do typically have lower savings/investments...and it just sounds better when you include your home.
          Whoa there!

          There are plenty of us who are VERY comfortable (and in our case, we'll may have higher income once DH retires than we do now).
          However, we have no desire for the maintenance of a home, and we also prefer to live where there is care available, too, once we reach that stage (assisted living, perhaps in conjunction with independent living and/or skilled nursing).
          Once we are *there*, we'd have exactly zero use for any owned residence.
          And we have no heirs who are eager to "get" the house.
          But we do plan to apply the equity towards our future care...perhaps get a larger unit, or do more traveling if we are able to do so, etc.
          Owning a home at that point? Why?

          That makes us - and others like us - among the "lower savings/investments" group, who "need" the equity to "sound better"?

          Really?

          RM
          This signature is a placebo. You are in the control group.

          quantAndHold
          Posts: 3611
          Joined: Thu Sep 17, 2015 10:39 pm

          Re: What percentage of your net worth is your home equity?

          Post by quantAndHold » Tue Dec 11, 2018 5:24 pm

          Home equity is of course part of net worth, whether you count it as part of spendable retirement assets or not. Net worth is a technical term with an actual definition that's commonly agreed upon (assets minus liabilities). Where's the dead horse emoji?

          Anyway, 1/3 of our net worth is home equity (no mortgage). And yes, that fact affects our financial decisions. We can't spend home equity directly, so we don't count it when calculating how much we can spend in retirement. But if we need it, for example if one of us needs long term care for a long time, we can sell the house or take a reverse mortgage. So we consider the house to be our long term disaster plan, and we can play closer to the edge of the cliff with our spendable assets than we would be able to otherwise.

          User avatar
          TomatoTomahto
          Posts: 9767
          Joined: Mon Apr 11, 2011 1:48 pm

          Re: What percentage of your net worth is your home equity?

          Post by TomatoTomahto » Tue Dec 11, 2018 5:26 pm

          michaeljc70 wrote:
          Tue Dec 11, 2018 5:11 pm
          Sandtrap wrote:
          Tue Dec 11, 2018 4:55 pm
          KlangFool wrote:
          Tue Dec 11, 2018 4:28 pm
          I do not count my house as part of my net worth. If someone is counting the house as part of their net worth, they had bought too much house.
          KlangFool
          Actionably: I cannot pay my retirement expenses with the home I live in. And, it's not counted as net worth. And, is not related to my allocation nor IPS though it is paid for.
          How is home equity as a percentage of net worth actionable toward financial planning?
          Of course you can. Reverse mortgage. Alternatively it can be sold and you can move to a rental.
          It is part of your net worth. Is someone that has $1 million in investments (no debt) in the same financial position as someone that has $1 million in investments (no debt) and a $500k paid off house? You may not count it as part of your retirement plan or assets, but the definition of net worth is pretty simple and universal.
          I don’t like to discuss net worth, because my response is “who’s asking?” OTOH, my house is material to my ability to weather a storm, literally and figuratively, so it should be considered. My stocks could go down 50%, just as the resale value of my house could go down 50%; why count one and not the other?
          Okay, I get it; I won't be political or controversial. The Earth is flat.

          Traveller
          Posts: 722
          Joined: Sat Jun 25, 2011 10:47 am

          Re: What percentage of your net worth is your home equity?

          Post by Traveller » Tue Dec 11, 2018 5:27 pm

          10%
          No mortgage.
          Property is an asset and therefore part of my net worth.

          pdavi21
          Posts: 1296
          Joined: Sat Jan 30, 2016 4:04 pm

          Re: What percentage of your net worth is your home equity?

          Post by pdavi21 » Tue Dec 11, 2018 5:28 pm

          39% paid off.

          I can't believe people aren't counting their home in their net worth.
          I suppose I will buy your house for 1 penny and increase your net worth for you, then.
          Last edited by pdavi21 on Tue Dec 11, 2018 5:31 pm, edited 1 time in total.
          "We spend a great deal of time studying history, which, let's face it, is mostly the history of stupidity." -Stephen Hawking

          22twain
          Posts: 2189
          Joined: Thu May 10, 2012 5:42 pm

          Re: What percentage of your net worth is your home equity?

          Post by 22twain » Tue Dec 11, 2018 5:31 pm

          Retired, house paid off, in a VLCOL area (small town in the Southeast). In our case, it makes little difference whether we include home equity in our net worth, or not. Either way, it's about 5%, give or take a couple of 0.1%.
          My investing princiPLEs do not include absolutely preserving princiPAL.

          User avatar
          Random Musings
          Posts: 5580
          Joined: Thu Feb 22, 2007 4:24 pm
          Location: Pennsylvania

          Re: What percentage of your net worth is your home equity?

          Post by Random Musings » Tue Dec 11, 2018 5:31 pm

          With the recent market correction, a little more.

          RM
          I figure the odds be fifty-fifty I just might have something to say. FZ

          User avatar
          Artsdoctor
          Posts: 4200
          Joined: Thu Jun 28, 2012 3:09 pm
          Location: Los Angeles, CA

          Re: What percentage of your net worth is your home equity?

          Post by Artsdoctor » Tue Dec 11, 2018 5:33 pm

          KlangFool wrote:
          Tue Dec 11, 2018 4:28 pm
          OP,

          I do not count my house as part of my net worth. If someone is counting the house as part of their net worth, they had bought too much house.

          KlangFool
          I usually agree with you, but I don't know how to interpret your comment.

          Your home equity is definitely a part of your net worth, and counting it has nothing to do with whether you believe you have "too much house."

          Whether or not you want to act on that equity during your investing career is up to you. But at the end of the day (at the end of your life), your home equity will factor into your estate planning, sometimes quite substantially.

          If you own a house, it will definitely need to be disposed of somehow at sometime, and the size of the equity shouldn't be viewed judgmentally.

          User avatar
          JoeRetire
          Posts: 4533
          Joined: Tue Jan 16, 2018 2:44 pm

          Re: What percentage of your net worth is your home equity?

          Post by JoeRetire » Tue Dec 11, 2018 5:35 pm

          Technically, the equity in our two homes is a bit less than 31% of our net worth.

          But looking ahead for finances in retirement, I don't count that equity as part of our portfolio. We are completely covered financially without it.

          We are planning to sell our primary residence and move into our secondary home full time next year. At that time I'll need to decide what to do with the proceeds of that paid-off house. Currently, I plan to invest it rather than pay off the mortgage on the other home. Depending on the economy next year, that plan could change.

          Either way, the percentage of our net worth tied up in home equity will change drastically for us at that point in time.
          Very Stable Genius

          tesuzuki2002
          Posts: 876
          Joined: Fri Dec 11, 2015 12:40 pm

          Re: What percentage of your net worth is your home equity?

          Post by tesuzuki2002 » Tue Dec 11, 2018 5:35 pm

          Ed_Sandwich wrote:
          Tue Dec 11, 2018 4:18 pm
          Mine is around 28%, curious about other bogleheads.
          I would say it is hard to make this meaningful. There are so many factors... and reasons. For the purpose of the exercise mine is 8% and the home is paid for.

          Blake7
          Posts: 196
          Joined: Fri Mar 30, 2018 2:52 pm
          Location: USA

          Re: What percentage of your net worth is your home equity?

          Post by Blake7 » Tue Dec 11, 2018 5:36 pm

          Net worth is simply a measurement of wealth. It's what you own, less what you owe. That's it by definition. Beyond that, we should call things what they are: investable assets, stocks, cash, real estate, cars, ratio of real estate equity to the rest of one's net worth (the OP's question), etc.

          Grt2bOutdoors
          Posts: 21788
          Joined: Thu Apr 05, 2007 8:20 pm
          Location: New York

          Re: What percentage of your net worth is your home equity?

          Post by Grt2bOutdoors » Tue Dec 11, 2018 5:38 pm

          KlangFool wrote:
          Tue Dec 11, 2018 4:28 pm
          OP,

          I do not count my house as part of my net worth. If someone is counting the house as part of their net worth, they had bought too much house.

          KlangFool
          Good thing you’re not an accountant-you would be censured for failing to adhere to GAAP.
          "One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

          User avatar
          TomatoTomahto
          Posts: 9767
          Joined: Mon Apr 11, 2011 1:48 pm

          Re: What percentage of your net worth is your home equity?

          Post by TomatoTomahto » Tue Dec 11, 2018 5:40 pm

          ResearchMed wrote:
          Tue Dec 11, 2018 5:24 pm
          That makes us - and others like us - among the "lower savings/investments" group, who "need" the equity to "sound better"?

          Really?
          I’m sure ponyboy didn’t mean to include you. In fairness, it is common for young people, with little savings and just starting out, to count their home equity as a way to make themselves feel better; it’s easier to show progress in their financial journey.

          As another example of why it should be counted: we are in the process of investing roughly 50% of what we bought our house for, in improvements. I count that as a wash financially. Omitting home equity would count it as a significant loss. That doesn’t make sense.
          Okay, I get it; I won't be political or controversial. The Earth is flat.

          Grt2bOutdoors
          Posts: 21788
          Joined: Thu Apr 05, 2007 8:20 pm
          Location: New York

          Re: What percentage of your net worth is your home equity?

          Post by Grt2bOutdoors » Tue Dec 11, 2018 5:41 pm

          Before or after transaction costs of selling the home?
          "One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

          User avatar
          TierArtz
          Posts: 328
          Joined: Wed Jan 04, 2017 10:33 pm

          Re: What percentage of your net worth is your home equity?

          Post by TierArtz » Tue Dec 11, 2018 5:42 pm

          Our home equity is 17% of net worth and the remaining mortgage is about 15% of the home's estimated value. I closely follow the discussions on paying off mortgages early (ours is 3.5%), but I figure I'd be better served by maximizing tax-advantaged retirement savings (IRAs,401k, and NQ-DCP).

          THY4373
          Posts: 1196
          Joined: Thu Mar 22, 2012 3:17 pm

          Re: What percentage of your net worth is your home equity?

          Post by THY4373 » Tue Dec 11, 2018 5:42 pm

          UpperNwGuy wrote:
          Tue Dec 11, 2018 4:22 pm
          Zero. I rent.
          +1

          michaeljc70
          Posts: 6091
          Joined: Thu Oct 15, 2015 3:53 pm

          Re: What percentage of your net worth is your home equity?

          Post by michaeljc70 » Tue Dec 11, 2018 5:43 pm

          Only on Bogleheads are people rushing to pay off their mortgage to not count it in their net worth :shock:.
          Last edited by michaeljc70 on Tue Dec 11, 2018 5:46 pm, edited 2 times in total.

          User avatar
          tennisplyr
          Posts: 2401
          Joined: Tue Jan 28, 2014 1:53 pm
          Location: Sarasota, FL

          Re: What percentage of your net worth is your home equity?

          Post by tennisplyr » Tue Dec 11, 2018 5:44 pm

          pdavi21 wrote:
          Tue Dec 11, 2018 5:28 pm
          39% paid off.

          I can't believe people aren't counting their home in their net worth.
          I suppose I will buy your house for 1 penny and increase your net worth for you, then.
          +1. Totally agree, that says that a person with $500k in investments and rents, is equivalent in net worth to someone with $500k and a house worth $500k (no mortgage)...you've got to be kidding. I downsized last year from a HCOL and banked a goodly sum. Oh, about a third.
          Last edited by tennisplyr on Wed Dec 12, 2018 7:37 am, edited 1 time in total.
          Those who move forward with a happy spirit will find that things always work out.

          Nowizard
          Posts: 2450
          Joined: Tue Oct 23, 2007 5:33 pm

          Re: What percentage of your net worth is your home equity?

          Post by Nowizard » Tue Dec 11, 2018 5:45 pm

          About 5% in our case.

          Tim

          User avatar
          steve roy
          Posts: 1735
          Joined: Thu May 13, 2010 5:16 pm

          Re: What percentage of your net worth is your home equity?

          Post by steve roy » Tue Dec 11, 2018 5:47 pm

          Fourteen percent. We sold the older, bigger house that had a LOT of equity and down-sized.

          Broken Man 1999
          Posts: 3794
          Joined: Wed Apr 08, 2015 11:31 am

          Re: What percentage of your net worth is your home equity?

          Post by Broken Man 1999 » Tue Dec 11, 2018 5:47 pm

          13%. No mortgage.

          Broken Man 1999
          “If I cannot drink Bourbon and smoke cigars in Heaven than I shall not go. " -Mark Twain

          marcopolo
          Posts: 2787
          Joined: Sat Dec 03, 2016 10:22 am

          Re: What percentage of your net worth is your home equity?

          Post by marcopolo » Tue Dec 11, 2018 5:52 pm

          Currently under 10%
          Will be about 25% once we build our retirement home and sell the current one, hopefully summer 2019.

          We don't count it as part of our portfolio, but obviously it is a part of our net worth.
          Someday it might be needed to pay for one of our LTC.
          Once in a while you get shown the light, in the strangest of places if you look at it right.

          Locked