Net worth of 1.6 million … You mean their purchase prices of the properties that their payments to the banks are based on = 1.6 million. AKA their debt = 1.6 million. The aren’t worth 1.6 mill, they owe 1.6 mill. They are worth what the properties can be sold for after they pay the banks off AKA – selling price – 1.6 million.
If they sell for 1.6 million they are essentially at 0. Sell for less and their net worth is negative.
So the media is also confused between debt and wealth.
Though I’d agree that the media are usually are confused, you are incorrect.
If you read the article there is a column on the right-hand side listing assets and liabilities.
Net worth = Assets- liabilities.
Assets were estimated at nearly 2.4 million
Liability (primarily mortgage debt) was ~ 750K
You could argue that their assets aren’t worth as much as they estimate. But please get the facts straight before typing.
