PPOR Val vs Net Worth

Discussion in 'Investment Strategy' started by Ace in the Hole, 20th Mar, 2016.

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PPOR Val vs Net Worth

  1. Up to 10%

    10 vote(s)
    18.5%
  2. 11% to 20%

    3 vote(s)
    5.6%
  3. 21% to 30%

    6 vote(s)
    11.1%
  4. 31% to 40%

    5 vote(s)
    9.3%
  5. 41% to 50%

    4 vote(s)
    7.4%
  6. 51% to 60%

    9 vote(s)
    16.7%
  7. 61% to 70%

    2 vote(s)
    3.7%
  8. 71% to 80%

    8 vote(s)
    14.8%
  9. 81% to 90%

    2 vote(s)
    3.7%
  10. 91% to 100%

    5 vote(s)
    9.3%
  1. Ace in the Hole

    Ace in the Hole Well-Known Member

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    For those with a PPOR, what proportion of its current market value is it of your net worth?
    Regardless of whether it has a loan attached to it.
     
  2. Cadbury99

    Cadbury99 Well-Known Member

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    My net worth is nearly double the value of my PPOR - there doesn't seem to be an option for that.
     
  3. HUGH72

    HUGH72 Well-Known Member

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    41-50% or 51-60% ?
     
    Gingin likes this.
  4. Cadbury99

    Cadbury99 Well-Known Member

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    Nope, that would be if my net worth was half of the value of my PPOR.
     
  5. Northy85

    Northy85 Well-Known Member

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    Just work out how much equity is in your PPOR and divide it by your entire equity position plus shares, savings, superannuation etc etc.
     
  6. Ace in the Hole

    Ace in the Hole Well-Known Member

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    Like HUGH72 said, it would likely be 51-60%
     
  7. lowIQ

    lowIQ Member

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    Depending on the current valuation, my guess its just under 30%. It's been an "Achilles heel" as far as investments are concerned, as I have been upgrading the PPOR several times over the last 10 years. One can argue that the money could have been better spent buying other investment properties/ shares instead. For lifestyle, though, I absolutely love where I am living now.
    Moving forward, hopefully, We will be able to get it down to below 10%:)
     
  8. HUGH72

    HUGH72 Well-Known Member

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    Around 10% for me, could and maybe should up grade but I can't bring myself to do it.
    Where I live it would be harder to sell if you ever needed to if you have a mcmansion.
    Too much hassle, agent and transaction fees but more importantly no more passive income.:p
     
    ellejay likes this.
  9. Scott No Mates

    Scott No Mates Well-Known Member

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    Cheap ips? Expensive ppor? Paid ppor (no/low non-deductible debt) No diversification?
     
  10. Bran

    Bran Well-Known Member

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    200%

    And I have a six figure house
     
  11. Cactus

    Cactus Well-Known Member

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    I have no PPoR, no option for rentvester so picked up to 10%
     
  12. kierank

    kierank Well-Known Member

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    At a guess, that would be most people.

    PPPOR equity between $100,000 and $999,000.
     
  13. Sackie

    Sackie Well-Known Member

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    I don't calculate my ppor as part of my net worth, because at the end of the day I need somewhere to live. So 0%.

    But I guess it would be up to 10% if compared as a proportion to my net worth...which I realise now is what your asking.
     
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  14. Cadbury99

    Cadbury99 Well-Known Member

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    Yup, 170% for me - also 6 figure house.
     
    Bran likes this.
  15. Bran

    Bran Well-Known Member

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    Who is talking about equity? Lots of people have a 1 mill PPOR! Half of Sydney houses for starters
     
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  16. The Butler

    The Butler Well-Known Member

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    Surely the question has nothing to do with equity?
    If the value of your ppor is $300k and your net worth (assets less liabilities) is $600k the answer is 50%.
    Sorry to be spelling it out but I think a number of posters aren't understanding the question.

    I suspect that those less than 10% are renters. I'm impressed by those 0-30%.
    I have just gone from 100% to 0%, from owning outright to renting.
    I specifically wished to have a lesser % in a lifestyle asset and more in productive assets. When we find a new house to buy I hope to be at 25-30%
     
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  17. Cadbury99

    Cadbury99 Well-Known Member

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    You would be correct if the OP had asked "what proportion of your net worth is equal to the market value of your PPOR" but they asked the inverse of that.
    They have meant what you are saying but that is not what they asked.

    What would be the answer is your net worth was less than the value of your PPOR?
     
  18. Northy85

    Northy85 Well-Known Member

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    I worked it out for myself as $70k equity in PPOR and an overlall position including PPOR of $500k
    70/500= 14%

    I see now after looking at it again. My PPOR is valued at $370k. But i like most people here have redrawn on the loan to buy more assets.
     
    Last edited: 20th Mar, 2016
  19. Ace in the Hole

    Ace in the Hole Well-Known Member

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    I tried to edit the poll so that I could add over 100%, but can't seem to add another option.
    How can the poll be edited?
    (If you don't have a PPOR, voting on this poll is a bit meaningless)

    The original question was:
    What proportion of your PPOR's value is it of your net worth?
    Meaning, if your PPOR is valued at 1 mil and your net worth is 2 mil, That would be 50%

    If your PPOR is worth 1 mil and your net worth is 900k, then your answer would be more than 100% but unfortunately the poll topped out at 91-100%.

    I guess the easiest way to calculate it is to divide your PPOR value by your net worth.

    We are at 41-50%, so was just wondering how that sat in comparison.
     
    Last edited: 20th Mar, 2016
  20. Adele

    Adele Well-Known Member

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    Nope, not renting. As I am sure quite a few of the other people voting at the 10% mark are not as well.

    And I understand the question perfectly well. :)
     
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