PPOR Val vs Net Worth

200% As I said

PPOR val vs net worth. My PPOR is worth twice my net worth. It's an easy question...

I also think its a sound question and worthy of discussion .

A PPOR 200% of our net worth suggests we should tone it down and/or work on our net worth. My PPOR is my single biggest liability (as in, non income producing 'asset'). I qualified it, by implying that I don't have a million dollar house (or even nearly a mill) - thus I'm not really overstretched, or living beyond my means. It's just that our ability to grow net worth at all has only just started.

 

Sums up my reply as well.

 

So all those who have answered <10% are declaring a net worth that is 10 times the value of their PPOR. Good for them if that's the case.

Based on the "clarified" definition my number is 60%.

 

That's how I would interpret it, yes. I'm well aware that we are associating here with many high-flyers. That's the whole value of PC.

 

Also PC has some great networks and consultants. Its a good place here to meet like minded people to share ideas, victories, sorrows etc. Not many people out there will ever 'get it'.

 

Nice work Adele and Hugh72. I shouldn't assume. Hats off to you.

 

My bad. I just revised mine and I'm at 74%

 

I would have to live in a shed for it to be 10% of my net worth.

 

20%

 

I really don't understand the value of this poll. If a person had the following:

Total Assets: $10M (including PPOR of $3M)
Total Liabilities: $nil
Net Worth: $10M

For this poll, they would vote 30%.

Then, if they bought $5M of investment property and borrow the lot, their situation would be:

Total Assets: $15M (including PPOR of $3M)
Total Liabilities: $5M
Net Worth: $10M

For this poll, they would still vote 30%.

From an investment perspective, I believe the second scenario is a far better situation and for most people still be conservative at an LVR of 33%.

The (PPOR/Net Worth)% shows both scenarios are equal.

 

Lots of polls without any further discussion aren't very relevant in isolation.
Such as - How many IP's do you own.
That one is much less useful, but it does get discussions and thoughts going.

 

I have many peers in million dollar houses, and no equity/net worth outside them. Perhaps an illuminating question (And comparing PC results to the non investor population) would be the same question, but excluding the networth in your PPOR.
My answer would be nearly the same.

 

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I see it as a poll to see what percentage of PCers 'cash' is invested. Assuming the remaining percentage of net worth has not been spent on bling.

Some people may argue that PPOR is an investment, but a lot of people do not view the investment/CG prospects as the determining factor in choosing a home.

 

So what happens if a person bought a house for 1M and put in 200k in (loan 800k) and they have no other assets (inc cash), does that mean the pole should be about 500%?

A better pole might be 'What % is your PPOR in relation to your total asset holding?'

E.g.

PPOR 3M
IP - 10M
Shares - 2M
Business - 4M
Misc/Car/Cash - 1M
Total - 20M

But as a % it would be 15%.