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Thursday, 1 August 2013

New Worth Update: July 2013

The past month saw strength in the international and local stock markets give a substantial boost to the value of my retirement savings (SMSF) and geared stock portfolio.

However, the overall gain in net worth was substantially affected by writing down half the difference between my previous monthly estimated value for our investment property, and the agreed sale price. Settlement of the sale is due at the end of August, so next month the remaining impact to my net worth will be felt. However, it won't be apparent in the property figure as the sale proceeds will be split between paying off one of our mortgage accounts, paying off some of the 'portfolio loan' currently secured against both our property titles, and the balance sitting in a cash account. There will be a capital gains tax liability of around $60K created by the sale of our investment property, but as I use cash accounting for my finances this won't affect my net worth figure until the tax is due around March 2015.

Despite this partial write-down in the value of our investment property, my NW this month reached its highest level since May 2008. On the one hand it is nice to see the worst impact of the GFC on my NW has finally dissipated, but the down-side is that it has taken five years to do so. And considering I save about $50k pa the situation is still dire compared to where I would have been if I'd been invested 100% in cash and fixed interest investments since late 2007...

Assets$ Amount $ Diff% Diff
Stocks *$15,694$5,246n/a
Retirement$523,216$26,8565.41%
Properties$864,689-$15,812-1.80%
Debts$ Amount $ Diff% Diff
Home Mortgage(s)$363,014-$89-0.02%
Net Worth$1,040,585$16,3791.60%
* the Stocks figure is portfolio value - margin loans

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