Tuesday 3 January 2023

Net Worth: Dec 2022

My monthly NW estimate has been updated in NetWorthShare for the end of December. Chart is in the side-bar.

My 'Stocks' figure was up $8,942 (3.19%) to $289,573 net equity I closed out a lot of positions during late December to accumulate cash in preparation for the settlement on my investment property in late Jan/early  Feb. Once that happens this 'stocks' figure will drop to around $50K and the current 'home mortgage' figure will disappear as we will be paying off our remaining home loan and replacing it with a mortgage for the investment property.  The 'other mortgages' figure will also drop (to reflect the actual mortgage balance outstanding) so there won't be any net effect on my NW total (currently the deposit and stamp duty paid in 2019 is reflected by a positive amount in 'stocks' and a negative in 'other mortgage(s)' - this was due to the way I used stocks funds to pay the deposit and stamp duty, so it was being recorded in a strange category.

The value of my 'Other Assets' category (gold and silver proof coin collection, valued at bullion value only, Perth Mint unallocated gold, silver and platinum holdings, and my small art investment via Masterworks) was up slightly during December, rising $1,124 (3.51%) to $33,117. I've suspended my regular savings plan purchases of bullion in my Perth Mint online depository account, as I may need all available cashflow to pay the interest on my investment property loan from Jan onwards.

Our estimated house price for December (my half) fell another $2,592 (-0.24%) to  $1,085,675 with continued weakness in the Sydney real estate market due to rising interest rates. Declines are likely to continue until inflation is brought under control, the RBA ends the cycle of interest rate hikes, and home loan interest rates stop rising. If the Dec Qtr Australian inflation figures look like inflation has peaked, and the US monthly inflation data for Dec and Jan is OK, then the current cycle of interest rate hikes might have ended. Fingers crossed. But I expect falls in absolute terms to continue, with the decline in real terms being worse due to inflation (currently running at 7.3% pa).

The value of my retirement savings decreased to $1,410,927 (down $57,946 or -3.94%) during December. The $10K I transferred from one of my superannuation accounts to purchase a deferred lifetime annuity is still counted as part of the overall superannuation balance.

Overall, my estimated NW decreased to $3,131,104 during the past month - down by $50,217 (-1.58%). In January or February I will have a valuation for the investment property, which *should* boost my NW figure by a 'one off' $300K or so. From then on I will track a monthly estimated valuation based on changes in the average sales price for units in the suburb. I might also update the valuation used for my hobby farm/weekender in the 'other assets' category, so my overall NW should more accurately reflect my current NW (but still excludes DW's NW).

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