After my recent property transaction, a portion of my liquid assets are now parked into home equity as I had to use proceeds from sale of my existing property plus some savings to fund my new property.
In terms of net worth position, it actually doesn’t change much except that legal fees and property agent commissions has eaten into my net assets.
I am fortunate in that because I had earlier paid up in full my mortgage loan for my existing property, my current property can be paid up anytime as I have more than enough in my CPF ordinary account balances plus my cash on hand to redeem the loan in full. The reason why I took the loan in the first place was the timing difference between receipt of sales proceeds and payment of monies for completion of purchase.