Tuesday 2 October 2007

Net Worth Update September 2007

My net worth as at 30 September increased by $30,681 (2.71%) during the month to $1,162,495 (AUD), largely due to the rebound in the Australian and International stock markets boosting my stock portfolio over the month. My leveraged stock portfolios increased by a net $11,924 (2.96%) to $414,139. The estimated valuations for my share of our home and investment property also increased by a considerable $18,164 (2.38%) to $780,953. Preliminary sales price data suggest that next months property portfolio valuation will have given back most of this month's gain, although the overall trend in Sydney property prices has started to look more positive. I expect our real estate holdings to add to our net worth over the next few years. Rents are currently rising strongly in Sydney, so we may get some extra investment income from our rental property next year. The balance of my half of the mortgage increased by another -$924 to -$362,134 as we continue to redraw some of our advance payments to cover the interest payments while DW is working part-time (until DS2 starts school in a couple of years).

Many other bloggers report on household net worth, rather than personal net worth, so I'll report on the net worth of the rest of my household occasionally. Currently the situation is:
DW NW=$474,225
DS1 NW=$ 49,153
DS2 NW=$ 1,370

Total household net worth is approx. A$1,687,243

DW has the same real estate holdings as me, a smaller retirement account balance, and no other assets. DS1 had some impressive gains in his stock portfolio [ANZ and QBE] over the past 5 years, and had his retirement account 100% in a geared Australian stock fund until recently. He used to earn a significant income from a paper round (done with considerable help from dad!), but these days only earns some extra money from busking a couple of times a month. DS2 just turned one, and I haven't bought him any stocks yet. I was planning on buying $2000 worth of CSL and a listed investment fund during the August slump, but didn't get around to it (D'Oh!). He has a child superannuation account which I opened with $1,200, and I'll add $1000 to it each year for at least the next couple of years. As I don't intend to do another paper round with DS2, and he missed out on the past four years of high returns from the Australian stock market, it will be difficult for him to accumulate the same NW as DS1 has achieved by age 7. I no longer contribute to DS1's child superannuation account, but I may have to contribute the maximum $1000 pa into DS2's child super account until he hits 18 in order to roughly "even things out" between DS1 and DS2.

Copyright Enough Wealth 2007

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