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Wednesday, 12 December 2012

Net Worth Updates: April-October 2012

With a bit of spare time between the end of my uni coursework degree and starting work on my research degree, I finally got around to checking the various monthly statements for my investment accounts and getting my 'net worth' spreadsheet calculations updated. Over the past six months my estimated new worth has increased by about 6% (or $50,897) to just over $900,000. The rise is mostly due to a recovery in the stock market since the EFC seems to have become 'old news'. This has boosted my stock investments, although I'm still "underwater" due to the substantial amount of margin loans I held going into the GFC. Because I had to sell off the better (least worst) stocks in my portfolio at the bottom of the GFC bear market in early 2008 in order to avoid margin calls, the subsequent recovery hasn't produced as much 'gain' as the previous 'pain'. The rising stock market has given my retirment fund (SMSF) a nice boost though, as we introduced some gearing within our SMSF post-GFC (by investing a small percentage of our capital in ASX200 CFDs "IQ") after the worst of the GFC had passed.

Unfortunately the Sydney real estate market hasn't improved much during 2012, after a weak 2011 -- at least not in our suburb. Judging by the lack of offers for our investment property since it was listed for sale a couple of months ago, and from the views expressed by our agent, my price 'estimate' (which is based on movements in the average sales price for houses in our suburb since we bought our property) may be 5-10% above what can be achieved in a weak market. With the property sitting vacant since our last tenant moved out in July, the lack of rental income is having a negative impact on my net worth. I am now having to borrow about $2,000 each month on my 'portfolio loan' to meet the interest-only payments on our mortgages.

The monthly movements in each asset class are shown below:


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