What share of your NW is your house?

[Anonymous]

We have two homes, with the more expensive one paid off and a relatively small mortgage on the other one. In total, the houses are about 30-32% of our NW.

[Anonymous]

Anonymous wrote:We are moving away from the DMV area and are house hunting. Here, we were still living in a modest house that we bought 10+ years ago. Since we bought our house, our HHI doubled and we are now looking at more expensive houses (we are moving to a high COL area).

If you upgraded your house, what share of your NW is your house? And what share of your HHI is your PITI?

our 2 homes are approx 20% of NW. No mortgage on either

[Anonymous]

650k in equity in primary house. That’s about half our NW.

[Anonymous]

2 homes..20%

[Anonymous]

^^no mortgage

[Anonymous]

The equity is less than 5%. We really need to pay it off.

[Anonymous]

I'm sure this will get me yelled at, but honest question... Why are so many folks here seemingly proud of having no debt/mortgage on a house? Given that we were in an extended low-interest period, we all had options to lock-in low-cost mortgages.

For example, our principle residence has a value around 3mm. We have a mortgage of around 1.6mm, at 2.75%. While we have plenty of assets to forego the mortgage, we have had that money at work in the market instead. We've done way, way better post-tax than the 2.75% we're paying to the bank. If anything, I wish we had levered up a bit. We have multiple other properties, and each has a loan roughly at 50% LTV.

Sure, there is a bit of risk here--the market could tumble. But over the next 20+ years, I think it a rather safe bet that we'll do better than 2.75% with our investments, even recognizing there will be multiple market cycles in there.

If anything, I'm kicking myself for not going to higher LTVs on our real estate portfolio while rates were low.

[Anonymous]

17%.

[Anonymous]

50%. We own it outright though.

[Anonymous]

Anonymous wrote:We are moving away from the DMV area and are house hunting. Here, we were still living in a modest house that we bought 10+ years ago. Since we bought our house, our HHI doubled and we are now looking at more expensive houses (we are moving to a high COL area).

If you upgraded your house, what share of your NW is your house? And what share of your HHI is your PITI?

House is fully paid off and represents 1.3% of total NW.

[Anonymous]

Three properties, no mortgages, around 30% of our NW.

[Anonymous]

Now it’s down to probably around 50%, but until it was paid off, it was 100% of my net worth. I took out a HELOC so I didn’t even have to have an emergency fund. I firmly believe that once you have a paid-off house and $100K in cash, you immediately enter the upper middle class.

I now have hundreds of thousands of dollars in stocks outside of retirement accounts, but I feel no wealthier than when I had only a paid-off house and $100K in cash. They’re all just numbers on a screen that go up and down — I hope to access them one day after a lot of compounding, but nothing takes the place of a paid-off house and $100K in cash.

Don’t listen to these wannabe, pseudo-hedge fund managers telling you that a 3% mortgage is some magical, wondrous gift and your ticket to wealth. That’s just some pablum they repeat to justify buying a more expensive house than they should. If you want true freedom, pay off your house ASAP.

[Anonymous]

A little less than 1/3.

PITI/yr is about 10% of our HHI.

[Anonymous]

Right now profit would be 500k or so, so half of net worth. Mortgage is 10% of hhi.

[Anonymous]

Anonymous wrote:I'm sure this will get me yelled at, but honest question... Why are so many folks here seemingly proud of having no debt/mortgage on a house? Given that we were in an extended low-interest period, we all had options to lock-in low-cost mortgages.

For example, our principle residence has a value around 3mm. We have a mortgage of around 1.6mm, at 2.75%. While we have plenty of assets to forego the mortgage, we have had that money at work in the market instead. We've done way, way better post-tax than the 2.75% we're paying to the bank. If anything, I wish we had levered up a bit. We have multiple other properties, and each has a loan roughly at 50% LTV.

Sure, there is a bit of risk here--the market could tumble. But over the next 20+ years, I think it a rather safe bet that we'll do better than 2.75% with our investments, even recognizing there will be multiple market cycles in there.

If anything, I'm kicking myself for not going to higher LTVs on our real estate portfolio while rates were low.

Because it is a guaranteed rate of return. Because we have enough in the market already.
Because we only have 20% of our NW in our 2 homes (worth $7M total).