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?
- babyboomer1001Lv 71 month ago
Why would they not include? It's an asset.
- curtisports2Lv 71 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.
- Glenn SLv 71 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.
- David 14Lv 71 month ago
Obviously your main residence counts.
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- Coffee DrinkerLv 71 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"
- COTANGENTLv 61 month ago
- SlickterpLv 71 month ago
Of course, any asset is part of net worth.
- SlumlordLv 71 month ago
Yes, include everything you won for net worth.
- Anonymous1 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.
- SumDudeLv 71 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.}