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One of our financial goals is to achieve £100k net worth by December 2011 and every month I’m tracking our progress.
This month we increased our Net Worth* total by £980. This was a £455 decrease in the mortgage and a £525 increase in our savings.
There’s still £24,152 needed to reach our goal for 2011 but I’ll keep on trying! Eek
* I’m not including any house repair savings or pension funds in this total.
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Prompted by Crystal’s post last week: Net Worth - Do You Include The House? I thought I’d let you know how I come about an estimated value for our house (which I then include in our net worth totals!)
Over the last five years our house value has been up and down but has always ranged between £170k-£200k. It was tempting at the time to increase its value in our net worth calculation to £200k because it made the figures look better!! ;) But I tried to remain realistic.
I did once take it up to £185k but after the recession really kicked in, and because we’re not selling any time soon, I reduced it back to £175k. Given the housing market in our area and what similar properties were selling for I think over time (the next 5-10 years) this is a good price to settle on.
Here in the UK I use a company called Zoopla to track the estimated value of house prices in our area (and I always check local property websites)……I think in the US you have Zillow.
Here’s the graphic I pulled from July’s Zoopla monthly report for our house.
-As an aside the estimated rental value is exactly the same as I would have it at: approximately £650 per month.
I know these figures are not perfect, but they can be a good guide to use if you want to include your house in your net worth calculation.
How do you estimate the value of your house?