What percent of your net worth is in real estate?

[Anonymous]

Direct exposure is about 50%. Indirect increases exposure to close to 90%.

But out net worth is extremely high and real estate is where we hold most of our wealth.

[Anonymous]

Anonymous wrote:0%. All in stock market and crypto after selling three properties. I should inherit several homes, but not buying any time soon.

What percentage of your net worth do you spend on rent, ie, paying off someone else’s mortgage? A

[Anonymous]

We are at 60% though no mortgage (house is about $1.5-1.6 in current market). Our net worth is fairly low compared to most people on there though. I can’t imagine ever having $10million or more.

[Anonymous]

25%

[Anonymous]

About 1/3 — have around $2.5 million in various non-house assets and about $800,000 in home equity (maybe more than that, but I don't believe that our house is worth as much as Zillow says it is).

[Anonymous]

If we sold we’d get about 500k. So half-ish our net worth. We’re fine irl but I feel poor for dcum.

[Anonymous]

Depends on your NW, there is a point where remaining 60% is a lot of money and has huge buying power. Putting 1/3 or 1/2 of your NW into RE you occupy isn’t generally smart way to allocate money as it doesn’t work hard enough for you. But it all depends, it works out for some people. It really really all depends on how wealthy one is. For middle classes most of their NW is their home, the richer people get the lower this ratio gets just because of purchasing power.

[Anonymous]

Anonymous wrote:Direct exposure is about 50%. Indirect increases exposure to close to 90%.

But out net worth is extremely high and real estate is where we hold most of our wealth.

If it’s investment RE producing income then it doesn’t count, it’s the same as investing in other vehicles, e.g. it’s other assets, not Your RE you occupy.

[Anonymous]

Anonymous wrote:Net worth is a useless metric.

It’s not useless, the amount matters. There are wealth tiers. It’s impossible for MC people, for example to have small percent of their NW into their home because their NW tends to be too low in comparison with housing prices. The richer one gets the more it becomes matter of preference, because you can afford to have nice homes and also have a lot left to invest elsewhere, so this ratio tends to get lower.

[Anonymous]

Anonymous wrote:Depends on your NW, there is a point where remaining 60% is a lot of money and has huge buying power. Putting 1/3 or 1/2 of your NW into RE you occupy isn’t generally smart way to allocate money as it doesn’t work hard enough for you. But it all depends, it works out for some people. It really really all depends on how wealthy one is. For middle classes most of their NW is their home, the richer people get the lower this ratio gets just because of purchasing power.

Ah so rental properties don’t count? We have most of our money in real estate but 80% of that is in rental properties. We probably only have less than 20% based on the equity we have in the house we live in.

[Anonymous]

About 60%. I own 3 houses. 2 are rentals and are paid off. The third is my residence that still has a mortgage.

[Anonymous]

A little under 20% with our home and a vacation house.

[Anonymous]

We have about $300k in home equity, which is about 1/3 of our net worth.

[Anonymous]

How close to the water and what kind of water? Climate change and rising seas is not an if but a when. Even if well insured, I'm not sure that's where I'd invest.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Depends on your NW, there is a point where remaining 60% is a lot of money and has huge buying power. Putting 1/3 or 1/2 of your NW into RE you occupy isn’t generally smart way to allocate money as it doesn’t work hard enough for you. But it all depends, it works out for some people. It really really all depends on how wealthy one is. For middle classes most of their NW is their home, the richer people get the lower this ratio gets just because of purchasing power.

Ah so rental properties don’t count? We have most of our money in real estate but 80% of that is in rental properties. We probably only have less than 20% based on the equity we have in the house we live in.

Rentals are income generating assets/investments, not something you would count as your housing RE allocation. For some people it’s where most of their wealth is allocated. You could think it’s bad or good, but the point is that it’s not money buried under your a$$ in a home(s) you occupy.