How to calculate Net worth?
Hi All,
I do have a question that seems so basic to me but I am not sure what should be the right answer & hence posting it here :-)
When calculating Networth, how to enter the value of a property?
For example,
a) If I do have a property with market value of 100K,
should I enter 100K
(or) 90K by deducting closing costs
(or) 85K by considering the volatality, uncertainity plus closing cost
(or) something totally different by taking 'liquidity' factor in to consideration - In other words, liquidity factor on SFR in a busy area is totally different from an undeveloped land located in a remote area --> How to calculate in order to factor that in to the number that we are entering in to networth calculations?
If I do have 50K loan on this property, I believe that I have to reduce that from the above number. Correct???
Thanks in advance for your input.