Does my house count towards my net worth if I'm still paying the loan?

You've bought a house, you're paying the EMI every month, and the property is worth a substantial amount.

But does that mean you're actually wealthier?

Yes, your home counts towards your net worth, even if you're still paying off the home loan. There's just one important detail.

Your house is an asset. Your loan is a liability.

When calculating net worth, include your property's estimated current market value as an asset.

Then subtract the outstanding home loan from your liabilities.

For example, imagine:

• Your home is currently worth ₹80 lakh.
• Your outstanding home loan is ₹50 lakh.

Your equity in the property is approximately ₹30 lakh.

That ₹30 lakh contributes to your net worth.

But property wealth isn't the same as available money

You might own a valuable apartment and still have limited savings in your bank account.

Selling a home takes time, involves costs and may not be practical when you need money urgently.

That's why it's useful to track both your total net worth and your liquid financial assets.

The takeaway: Your home can be one of your biggest assets. Just remember that owning valuable property and having money available to spend are not the same thing.