MSE Poll: How much are you worth (or do you owe)?

Takmon · 26 August 2020 at 3:52PM

Well the poll does state:

MSE Poll said:

Take any unsecured debt (ie, EXCLUDING any mortgage/student loan) away from any savings you have and where do you end up?

It's pretty clear that does not include the value of any property because nobody would describe the value of their house as "savings" . So i don't see why people are struggling to understand what it's asking and some people in this thread have still got it wrong.

203846930 · 26 August 2020 at 4:18PM

Takmon said:

Well the poll does state:

MSE Poll said:

Take any unsecured debt (ie, EXCLUDING any mortgage/student loan) away from any savings you have and where do you end up?

It's pretty clear that does not include the value of any property because nobody would describe the value of their house as "savings" . So i don't see why people are struggling to understand what it's asking and some people in this thread have still got it wrong.

I have no mortgage and no debt of any kind, I DO class my home as savings, I can take equity release on it at any time I like, I can sell it and go live in a cave if I wanted to, sorry but house value in my case is savings.

Takmon · 26 August 2020 at 9:39PM

duncanthedog said:

Takmon said:

Well the poll does state:

MSE Poll said:

Take any unsecured debt (ie, EXCLUDING any mortgage/student loan) away from any savings you have and where do you end up?

It's pretty clear that does not include the value of any property because nobody would describe the value of their house as "savings" . So i don't see why people are struggling to understand what it's asking and some people in this thread have still got it wrong.

I have no mortgage and no debt of any kind, I DO class my home as savings, I can take equity release on it at any time I like, I can sell it and go live in a cave if I wanted to, sorry but house value in my case is savings.

But then if you class your home as savings then using the same logic you can class all your other possessions as "savings" so your car is savings, your furniture is savings because then can sell them to release the money. So then you get into the situation where buying a new car could be called putting your money into savings. You could also say that you have 3 months income as an emergency fund and that comprises of the sofa, the fridge and the washing machine...

I can see your logic to an extent but i wouldn't call your home as savings because your obviously not going to sell it and live in a cave and equity release is simply borrowing money against the house so involves getting into debt.

dk2401 · 26 August 2020 at 10:09PM

In my opinion this is a pointless exercise unless guidance is given about whether to include property and pensions...

XRAT · 26 August 2020 at 10:29PM

Takmon said:

Well the poll does state:

MSE Poll said:

Take any unsecured debt (ie, EXCLUDING any mortgage/student loan) away from any savings you have and where do you end up?

It's pretty clear that does not include the value of any property because nobody would describe the value of their house as "savings" . So i don't see why people are struggling to understand what it's asking and some people in this thread have still got it wrong.

Dear Takmon,

I am afraid I tend to agree with 'dunkanthedog' based on the grounds that so many people say, "My house is my pension, I'll downsize when I retire and move to the countryside."

That said, I pity anyone who is reliant on their home for a pension. I don't think that statement is viable for pretty much anyone living outside London SW1. The current cost of moving from most other areas, to most of the rest of the country would devour so much of the value of a home that the downsize would not realise much capital.

I agree with most other comments, clarification needs to be made;

couples with joint assets should halve their assets to give personal wealth,

if property is not to be included.., what about a second home? (There's no difference between that and other assests such as shares.)

Zanderman · 27 August 2020 at 11:16AM

MSE_Petar said:

Poll started 25 August 2020
While many are struggling as a result of the coronavirus crisis, others are saving and repaying debts much faster than before. So this week, we're looking to get a snapshot of the nation's finances. Take any unsecured debt (ie, EXCLUDING any mortgage/student loan) away from any savings you have and where do you end up?

With or without house value?
Your poll is meaningless unless you say.
Results so far are meaningless because you didn't say.
You're wasting our time MSE_Petar and missing an opportunity for some really interesting results.

203846930 · 27 August 2020 at 11:44AM

My house is worth something like £60,000 more than I paid at the start of my mortgage, about half of that is pure profit (I can't be bothered to work it out) so I have to include it in my calculations as an investment, nothing else that I own has risen in value so they are all just written of as nothing.