Comment on Share with those less fortunate
Jmdatcs@lemmy.world 8 months agoTF you taking about? You use the whole price of the asset for net worth. If your mortgage is $1 less than what you would get from selling it that’s +$1 to your net worth.
If you’re house sells for 500k after expenses and you owe 300k you don’t just get the 200k and still owe 300k.
My house is worth ~1.8mm and I owe ~140k, that’s +1.66mm to my net worth. Even if I owed 1mm, I’d have +800k.
Unless the house is worth less than you owe, having a mortgage on your house isn’t a negative to your net worth.
DragonTypeWyvern@literature.cafe 8 months ago
They have a new mortgage. They haven’t built up equity yet, plus who knows what their damage is on other loans.
This isn’t complicated. Their asset (the home) atm is still roughly equal to their liability (the mortgage).
I’m sure they’ll be out of a negative net worth before they think but we also don’t know what their damage is on interest rates, student loans, car loans, medical debt, etc.
Jmdatcs@lemmy.world 8 months ago
I wasn’t taking about that guy, he said he’s underwater.
I was responding to your bullshit about needing to pay off 50%+ for your home to be a net positive to your net worth.
“New mortgage” doesn’t matter, as soon as you make the down payment, before you make a single mortgage payment, as long as the house hasn’t decreased in value you have equity and that adds to your net worth.
As long as you can sell and have $1 left over after leins and expenses, it adds to your net worth. It’s the value of the home less any leins, not your equity less any leins when determining what it means to your net worth.
DragonTypeWyvern@literature.cafe 8 months ago
Feel free to day one flip a new house for a profit after those expenses you’re handwaving, I’m sure it’s easy to do.
In the meantime, most homeowners will be breaking even on the investment, aka growing their worth, years or decades into ownership, assuming a stable market.
Much slower now than it was just a couple years ago, I hope they got a fixed rate.
Jmdatcs@lemmy.world 8 months ago
Bro, you need to take the L here.
I’ll ignore you obviously having no idea what net worth means and trying to move the goalposts from your dip shit 50% comment again and just say this:
Even in a buyer’s market where the seller pays their realtor fees, the buyer’s realtor fees, and closing costs, you’re talking 7-8% tops. If your home hasn’t decreased in value and it takes you decades, or even just years, to have 7-8% in equity, you are a class-A fuckup.