Wednesday 2 December 2015

Net Worth: November 2015

A fairly flat month: Sydney house prices have definitely stopped rising, and auction clearance rates have apparently gone from 90% earlier this year to around 60% now. As usual the "experts" are of divided opion -- some predicting a bursting of the housing 'buble' and falls of 40%, some predicting a return to 'modest' price growth of  around 10% in 2016, and some predicting  a period of price stagnation resulting in a slight decrease in 'real' prices over the next year or two...

As a result our estimated current house valuation is $684,053 (my half share - I don't include DW figures in my personal NW calculation), a modest gain of $3,238 (0.48%) since last month's review. This, as usual, doesn't reflect any potential 'windfall' profit if the property gets rezoned next year and redeveloped into medium density housing apartments as part of the new hospital precinct. Recent residents' meetings have had real estate agents advise that things could finalized within 18-24 months, and some residents have signed 'options' to sell their property to developers for around $2.5m.

My retirement savings balance estimate dropped slightly to $715,783 (down $7,382 or 1.02%), due to weakness in the stock market. The valuation of my geared share portfolio dropped considerably (down $24,215 to $113,816) but this is likely to have been exaggerated due to my investment in IPE paying out a dividend/capital return of around $13,000 today, so the valuation at the end of November was probably 'ex dividend'.

As usual I haven't adjusted the 'cost base' valuation for the hobby farm I 'inherited' from my parents at the start of 2014.

Overall, my net worth was $1.800m, down $28,122 (1.54%) from the previous month end figure.

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