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Anonymous
Anonymous asked in Business & FinanceRenting & Real Estate · 1 month ago

When people calculate their net worth, do they include their main fully owned house as part of their net worth?

Or should they not include their main place of residence?

10 Answers

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  • 1 month ago

    Why would they not include? It's an asset.

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  • 1 month ago

    If you can ask this question, you don't understand what net worth is. Net worth is the value of ALL of your assets minus the value of ALL of your debt. You include ALL real estate you own. Plus all else you own.

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  • 1 month ago

    Yes it is used as part of your net worth, but it is not allowed to be used as an asset for investing in securities and financial investments.

    Most business ventures want to know your net worth, less the value of your residence, before they allow you to invest in their business venture.

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  • 1 month ago

    Obviously your main residence counts.

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  • 1 month ago

    Yes they do - if they are calculating it correctly.

    They should also subtract any debt such as mortgages against that property or any other property.

    By definition a person's net worth includes all of their assets. You could calculate how much money you have not counting your home, but that's not your net worth, its just "how much money you have not counting your home"

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  • 1 month ago

    yes.............................

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  • 1 month ago

    Of course, any asset is part of net worth.

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  • 1 month ago

    Yes, include everything you won for net worth.

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  • Anonymous
    1 month ago

    Of course, its  NET.    An IRA on the other hand, I carry at full value  but taxes will be owed..eventually. i value my house as if I have to get out in 3-4 months. And, I consider realtors commissions.

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  • 1 month ago

    One's house (to the extent the occupant has paid for it) IS part of their net worth (because it can be sold). So, house cost $489,000 - balance due of $377,000 = value to owner of 112,000. [Inflated value based on current price IS NOT used in formal accounting; but individuals can count that extra equity if the want to.}

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