Does Your Home Count in Your Net Worth?
Yes.
Your home is an asset. It has a market value, you own it (or own a share of it), and that value belongs on your net worth statement. Leave it out and your picture of your financial position is incomplete.
Why people hesitate
You can't spend your house. You can't use it to pay next month's bills or fund a holiday. Unlike cash or shares, it isn't liquid; you can't convert it quickly without major cost and disruption.
That makes it feel different from other assets. But it is still an asset. A business that isn't listed on any exchange is still an asset. Super that is locked until you're 60 is still an asset. Your home works the same way.
How to value it
Use a reasonable current estimate of what your home would sell for today. You don't need a formal valuation - a rough figure based on recent sales in your street is fine for a monthly snapshot.
A few ways to get that estimate:
- Check what comparable homes nearby have sold for recently on Domain or realestate.com.au
- Use the automated estimate in your bank's property portal (most lenders provide one)
- Ask a local agent. They'll usually give you a rough figure without charging for it
Note Try to ensure you use the same source each time you log a snapshot. There can be large variation between sources, so mixing them could lead to false trends.
What to put in your net worth
Asset: current estimated value of the property
Liability: your remaining mortgage balance (find it in your lender's app)
The difference (equity) is the part of your home that is actually yours. For most Australians, this is by far the largest single line in their net worth.
If you have an offset account, treat that separately as a cash asset. It reduces the interest on your loan, but it is still accessible money, and accessible money is worth tracking on its own.
Total vs accessible net worth
It is worth keeping in mind that your home is not accessible wealth. You cannot sell part of it, and selling all of it comes with agent fees, stamp duty on your next purchase, moving costs, and the disruption of finding somewhere to live.
Some people find it useful to track two numbers:
- Total net worth: everything, including the home
- Accessible net worth: liquid and semi-liquid assets only: savings, shares, super (once you can access it), investment properties you could sell without affecting where you live
Neither number is more "real" than the other. Total net worth tells you your complete position. Accessible net worth tells you how much flexibility you actually have.
Include your home in your net worth. But remember that owning a $1.2 million house with a $900k mortgage is not the same as having $300k in cash.
For most Australians the family home is the biggest number in their net worth. Getting it in your tracker, along with the mortgage against it, gives you a complete picture of where you actually stand.