4 ms·

This is why most calculations of Net Worth ask you to exclude the primary residence.

• GuB-42 5y ago
  It makes no sense. In theory, you can sell your house to a landlord without leaving it. You can then invest the money you got by selling the house into stocks and use the dividends to pay the rent. By doing that, you didn't change your lifestyle, didn't become richer or poorer, you just moved money from an account to another, but if net worth calculations didn't include the primary residence, you would have created wealth out of nowhere. Also, what about mortgages? Are they excluded too? If you don't consider the primary residence as an asset, you can't reasonably consider the associated mortgage a debt.