Net Worth and material goods

Hi all,
There has been some discussion about including 2nd and 3rd pillar into the net worth calculation.
Now, my question is whether you should include “material” goods as well: It starts with real estate (but which value would you use?), vehicles, any kind of collections (coins,stamps,etc) down to the household inventory (Hausrat). Many of these items depreciate over time.

In my opinion: of course you should include them. But not the purchase price, but rather the current value.

I would also include 2nd & 3rd pillar in the savings rate calculation.

1 Like

Vehicles: Eurotax value on autoscout or comparis

Real estate: you can use the tax value, the insurance value, the purchase price or the market value, depending on which one you find the more accurate. If you need a market value, you might ask your bank or any other service provider and pay for such service.

1 Like

Most people tend to overvalue material possesions, and in particular any collections they may own. Once it comes to liquidating, the values turns out to be the far below expectations, due to whichever particulars may be important for the category - inclomplete, sub-par specimen quality, ageing, difficulties in selling and so on.

I have to agree with @glina here. It is very difficult to evaluate a collection. It can have a great value for you, but it can be extremely difficult to sell. It may take you years to sell a good collection at the price you want. If you have Picasso paintings, it’s probably much better, but I doubt any Picasso’s owners are dwelling in these forums :wink:

Personally, I do not even consider my car in my net worth. It’s depreciating too fast.

As for real estate, I would consider it if I had it. However, the current value is more important than the purchase price. But it is difficult to estimate yourself. And at least 5% should be removed from the value because you will have to pay a lot of fees again for selling it. And many people ignore that fact.

1 Like