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Earlier quoted context omitted.
Buying a house shouldn't make your net worth go negative (unless it massively depreciates, I guess). The mortgage balance is debt, but it's backed by the value of the house.
You don't own the house until it's paid off.
I see a net worth video. How important is net worth? My wife and I had about $200k net worth until we bought a house. Now it’s probably the same amount but negative after the house purchase. We max out our 401ks and employee stock purchase. Our mortgage and car note is below the 30% suggestion. It will probably be 5-8 years or more until it’s positive again.
Starting with a $200k net worth, and you (for instance) put down $100k on the home. You now have $100k in cash/securities and $100k in home equity, assuming you paid the appraised value of the home.
Hope that helps!
Earlier quoted context omitted.
Buying a house shouldn't make your net worth go negative (unless it massively depreciates, I guess). The mortgage balance is debt, but it's backed by the value of the house.
You don't own the house until it's paid off.
Earlier quoted context omitted.
Buying a house shouldn't make your net worth go negative (unless it massively depreciates, I guess). The mortgage balance is debt, but it's backed by the value of the house.
You don't own the house until it's paid off.
I saw there’s a topic on compensation, and I think this is perhaps one of the most important topics for engineers in the Bay Area. I rarely run into an engineer with budgeting issues, but more often than not, I run into an engineer who has taken a compensation offer that is less than ideal at an early stage company. I think it’s great that there is a whole topic on compensation. I think the equity side is super compl…
How would one go about attending this course without being enrolled?
Earlier quoted context omitted.
You don't own the house until it's paid off.
But you own a portion of the house and the bank owns a portion equal to the loan value.
I see a net worth video. How important is net worth? My wife and I had about $200k net worth until we bought a house. Now it’s probably the same amount but negative after the house purchase. We max out our 401ks and employee stock purchase. Our mortgage and car note is below the 30% suggestion. It will probably be 5-8 years or more until it’s positive again.
Buying a house shouldn't make your net worth go negative (unless it massively depreciates, I guess). The mortgage balance is debt, but it's backed by the value of the house.
To them any debt is bad no matter what it is and drags down their calculation of becoming a millionaire. Their calculation for net worth is all savings minus any form of debt.
I see a net worth video. How important is net worth? My wife and I had about $200k net worth until we bought a house. Now it’s probably the same amount but negative after the house purchase. We max out our 401ks and employee stock purchase. Our mortgage and car note is below the 30% suggestion. It will probably be 5-8 years or more until it’s positive again.
Buying a house shouldn't make your net worth go negative (unless it massively depreciates, I guess). The mortgage balance is debt, but it's backed by the value of the house.
EDIT: Ah I see they were implying they went from $200k net worth to NEGATIVE. I hope the transaction costs were less than that!