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Comment on Share with those less fortunate
omega_x3@lemmy.world 8 months ago
They don’t have any debt? I’m still 5 or 6 years from $0 if I don’t get sick or have to replace a car.
Evilsmiley@sh.itjust.works 8 months ago
Comment on Share with those less fortunate
omega_x3@lemmy.world 8 months ago
They don’t have any debt? I’m still 5 or 6 years from $0 if I don’t get sick or have to replace a car.
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June@lemm.ee 8 months ago
I’m at least 30 years from $0 lol.
It’s funny how my net worth was higher when I was renting than it is now that I’m a homeowner that bought 18 months ago.
Rodeo@lemmy.ca 8 months ago
Yeah but now you have a concrete asset on which you’re gaining equity.
Before you were getting nothing for all that money you spent on rent. Now you’re getting equity for it.
June@lemm.ee 8 months ago
I know this will likely change as time goes on, but so far I’ve lost value and I’m under water by about 10% according to what I can suss out of the market value. And, my mortgage is 2.5x what I could be paying in rent most anywhere else in the region, which is its own stressor yannow. Everything is just a bit wonky right now.
Agent641@lemmy.world 8 months ago
I have no debts, 10k in savings, and I live in a van 🙃
Asifall@lemmy.world 8 months ago
Are you not counting your house as an asset when calculating net worth?
June@lemm.ee 8 months ago
I’m underwater right now since interest rates jumped right after I bought. So no.
PM_ME_FEET_PICS@sh.itjust.works 8 months ago
You went with a variable rate? Are you insane? At least rates will drop in the next 3 years.
Asifall@lemmy.world 8 months ago
Why would you expect that to take 30 years to get back to $0 though?
DragonTypeWyvern@literature.cafe 8 months ago
Net worth literally means assets minus liabilities.
If you have a mortgage that isn’t at least 50% paid off you probably have a negative net worth, while a renter without other debts will have a positive worth.
The accumulation of equity compared to the complete loss of value to renting is a different discussion.
This discrepancy, btw, is why people accuse Trump of being a fake billionaire, because his liabilities exceed his assets, thus his begging for cash from the gullibles.
Jmdatcs@lemmy.world 8 months ago
TF 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.