Thursday, 1 March 2018

Net Worth: Feb 2018

My NW decreased slightly during Feb, almost back to where I was at the end of 2017. Weakness in both the international share market (which affected our retirement savings) and the Sydney real estate market resulted in an overall decline in net worth of -$6,115 (-0.26%). The market recovered some of its earlier losses towards the end of the month, although it showed continued weakness in the final days of the month.



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Thursday, 1 February 2018

New Worth: Jan 2018

My personal net worth increased slightly during January (up 0.45% to A$2,322,494), mostly due to an increase in the value of my retirement savings (up 1.22% or $11,334). My geared stock portfolio ended almost unchanged at the end of the month (up 0.07% or $162), having given back most of the month's gain during the final two trading days. As expected, the estimated valuation for our home decreased during January (down 0.30% or -$2,591), driven by weakness in the Sydney real estate market reflected in average sales prices for our suburb.

While predictions are notoriously inaccurate, especially ones about the future, I anticipate my net worth may end the year in the range A$2.3m-A$2.5m. The lower figure would reflect stagnant house prices during 2018, but not a 'crash', and lack-luster stock market performance being offset by my continued retirement savings. Any significant adverse event (loss of employment, significant downturn in Sydney real estate throughout 2018, or a major stock market crash) could easily see my NW dip below this figure. The upper figure assumes an overall gain of around 7.5% during 2018, which would represent a dollar amount of around A$174,000. While not outside the realms of possibility, I can't see any evidence to suggest that either the property or stock market (or both) will perform well enough during 2018 to achieve that result. It will be interesting to see how 2018 does pan out, and what NW figure I end up with at the end of this year...



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Wednesday, 3 January 2018

Net Worth: Dec 2017

DS1 is mid-way through his European vacation. He got a good enough ATAR to get into his first choice of university course, and has already completed the offer acceptance online. He'll finalize his enrolment details when he returns to Sydney at the end of January, and start preparing to start university at the end of February.

My net worth increased again in December, with my geared share portfolio adding a bit over $10,000 to my net worth, and my retirement savings also increasing by around $10,000. Some of the increase in the estimate of my retirement savings account balance is due to my making a slight adjustment to the calculation formula used to work out the % of the total SMSF balance that belongs to each member. I had previously simply added up the contributions made by DW and by myself, and used the relative % of total contributions to apportion the current balance to each member. The correct method is to calculate the relative effect of each contribution to the current total balance at the time of each contribution. The revised calculation method accounted for most of the increase in my SMSF account balance between Nov and Dec.

The estimated valuation for our home increased slightly, as the median sales price in our suburb rose slightly, bucking the general downward trend in property prices in Sydney. 'Experts' are now predicting a decrease of between 4%-10% in Sydney property prices during 2018, which would make it difficult for my NW to continue to rise during 2018, unless there is a substantial shift in investor focus from real estate to the share market, which might assist my geared share portfolio.



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