Thursday, July 10, 2008

Net Worth Update for 2nd Quarter '08

I've updated my net worth at NetworthIQ. My net worth dropped by $5k. Despite adding $3k to my 401k that account dropped by $6k. My debts dropped slightly, off-setting some of the loss in retirement savings.

One interesting thing has occurred which (I hope) underestimates the value of one of my properties. In 1998 I made an offer to purchase a home on 5 acres for $180k. Someone else outbid me and now has that property on the market for $369k. I purchased a slightly nicer property nearby for $195k which I have valued at only $235k. I still own that property (with my ex) and think that it is pretty comparable. If so, I may have more equity than I currently think in real estate.

Data from the local Realtors indicates that property values have continued to rise at their slow 3-6% rate as they have for the past 8 years. However, the banks have all sent me notices that the values of my properties has dropped dramatically (20%!!). I guess that they don't want to loan out any more money. At any rate, I've not changed the values of any of my properties.

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