What is your net worth?

[OngHuatHuat]

In USA, they exclude the house that you are living in when they calculate net worth.

But in Singapore, I think it cannot be excluded since housing in Singapore is so expensive.

Can share your net worth and age?

Net worth = total asset minus total libialities

 

[wondrdoggie]

You should start the ball rolling right?

 

[focus1974]

In USA, they exclude the house that you are living in when they calculate net worth.

But in Singapore, I think it cannot be excluded since housing in Singapore is so expensive.

Can share your net worth and age?

Net worth = total asset minus total libialities

ya..the definition for networth according to bank is EXCLUDE Your PRIMARY RESIDENCE..

most probably coz they are more interested in segregating the crowd into the mass affluent and hnw and vhnw and whatever elite status they have. THat way, they can ask you to park money there and earn money off you
JUst a guess.. lol.


but ... i think we should include our primary residence .. since when you do your financial assessment.. it opens up an option to you ...

can you imagine someone with only $300k cash but a property worht $2mil (a lot of old folks staying in those single storey landed might be like this... not all.. but certainly some)...
Do you think they should be called mass affluent? They can sell landed and buy a HdB resale and instantly become HNW..

 

[limster]

but ... i think we should include our primary residence .. since when you do your financial assessment.. it opens up an option to you ...

For the purpose of showing off in HWZ, the higher the number the better.

To boost numbers, net Worth should include expected future earnings from 4D and Toto as well, adjusted to NPV.

 

[cybercom8]

of course have to exclude primary residence lah, be it hdb or condo or bungalow...because almost all will never sell and move out.

to the banks, this definition excl. primary residence is also important as its what you have available for investment. better not gamble with your primary residence

 

[cybercom8]

ya..the definition for networth according to bank is EXCLUDE Your PRIMARY RESIDENCE..

most probably coz they are more interested in segregating the crowd into the mass affluent and hnw and vhnw and whatever elite status they have. THat way, they can ask you to park money there and earn money off you
JUst a guess.. lol.


but ... i think we should include our primary residence .. since when you do your financial assessment.. it opens up an option to you ...

can you imagine someone with only $300k cash but a property worht $2mil (a lot of old folks staying in those single storey landed might be like this... not all.. but certainly some)...
Do you think they should be called mass affluent? They can sell landed and buy a HdB resale and instantly become HNW..

ok lah, you win lah, what is your net worth including primary residence?

and excluding

 

[frenchbriefs]

ya..the definition for networth according to bank is EXCLUDE Your PRIMARY RESIDENCE..

most probably coz they are more interested in segregating the crowd into the mass affluent and hnw and vhnw and whatever elite status they have. THat way, they can ask you to park money there and earn money off you
JUst a guess.. lol.


but ... i think we should include our primary residence .. since when you do your financial assessment.. it opens up an option to you ...

can you imagine someone with only $300k cash but a property worht $2mil (a lot of old folks staying in those single storey landed might be like this... not all.. but certainly some)...
Do you think they should be called mass affluent? They can sell landed and buy a HdB resale and instantly become HNW..

to be fair primary residence should only be excluded up to the first 200k.after that should be counted in ur networth.in australia u are allowed to own up to 200k in property before u are disqualified from welfare assistance/pension.

 

[highsulphur]

This thread will gather better (not necessarily more accurate) response at edmw

 

[hfts_james]

great info. but how to calculate net worth exactly?

let's say I just graduated with a degree and only have savings in the bank. no loans no assets whatsoever. just the amount in my bank account? need to include yearly salary?

 

[OngHuatHuat]

of course have to exclude primary residence lah, be it hdb or condo or bungalow...because almost all will never sell and move out.

to the banks, this definition excl. primary residence is also important as its what you have available for investment. better not gamble with your primary residence

Let us consider a case scenario:

You only have a bungalow worth 20 million, all paid up. With cash only 100k, so what is your net worth?

 

[OngHuatHuat]

to be fair primary residence should only be excluded up to the first 200k.after that should be counted in ur networth.in australia u are allowed to own up to 200k in property before u are disqualified from welfare assistance/pension.

Yeah, this is what I trying to say. Some owns properties fully paid up, their primary residence, worth a few millions but cash only 100 k, how?

And what if one with primary residence, luxury condo in orchard and another with primary residence, let say hdb at some isolated places?

 

[OngHuatHuat]

great info. but how to calculate net worth exactly?

let's say I just graduated with a degree and only have savings in the bank. no loans no assets whatsoever. just the amount in my bank account? need to include yearly salary?

Just cash you have.

 

[OngHuatHuat]

This thread will gather better (not necessarily more accurate) response at edmw

Already create one there.

 

[highsulphur]

Think what focus said is reasonable. Exclude the first 300k from the value of your home. I use 300k as an average value of a 3 to 4 room resale hdb as one can choose to downgrade his home to a small hdb.

 

[wondrdoggie]

Hi guys, standard definition of net worth is total assets minus liabilities. Means include property but don't forget to minus off mortgage. That number is what you as a person is worth financially.

Liquid net worth or investable assets does not include property. You would care about this number because this are your liquid assets that can be used to invest, spend and use in emergencies. Whoever that want to sell you something would care about this number essentially. Especially the banks.

Properties (self stay) in SG takes up abig chunk of net worth. So technically we are all tying up a lot of money in illiquid assets that generate no income. Taking opportunity costs, we are paying ourselves rental actually and hope it appreciates in value. If you want, you can tie down how much staying in that property cost by depreciating over leaseholds periods plus opts costs.

Anyway, no point coming up with alternative definitions just for this thread ya?

 

[ramlee]

10 over posts and still no numbers?

 

[cybercom8]

Let us consider a case scenario:

You only have a bungalow worth 20 million, all paid up. With cash only 100k, so what is your net worth?

that is an extreme example.

if you dont plan to have another cheaper property as your primary residence and if you can monetise the bungalow or take up a loan against it, think the banks should consider a portion of it as net worth else its something they or you cannot touch.

to the banks, your $20M fully paid bungalow dont mean anything since they cant sell you anything

 

[Bustamagic]

Should change thread title to "What is the definition of net worth?"

 

[cybercom8]

Should change thread title to "What is the definition of net worth?"

yeah lor, since no one talked about his/her net worth...just defining what it is

 

[knightdreamer]

Haha maybe TS should start the ball by telling us his net worth

by right net worth should include HDB, car, study loan...

Net worth = Total Asset - Total Liabilities.

But in Singapore, quite special case since we use cpf to pay our housing. unless we exclude the whole cpf part.