Tuesday 1 August 2023

Net Worth - JUL 2023

Chart updated to end of July in sidebar.

Stocks/cash increased $23,402 (+12.85%) to $205,509 - but this was largely due to my adding another $5,000 from cash by setting up my new Moomoo trading account.

Retirement savings (SMSF etc) increased by $37,830 (2.43%) to $1,596,702

Est. of Home valuation (my half) increased by $13,215 (1.30%) to $1,030,226. So the general improvement in Sydney residential real estate market has finally started to be reflected in the sales prices achieved in our suburb.

Other real estate (my 'lake house' and the investment apartment) increased by $11,125 (0.54%) to $2,073,359

The outstanding balance of the investment property mortgage remains at $1MM (the loan is 'interest only' for another 4 years 7 months). Interest rate is currently 6.29% after the RBA hit 'pause' on the overnight cash rate hikes while they wait and see how inflation and economic activity responds to the series of rate hikes done so far. Inflation seems to have peaked and is (slowly) trending down, and the inflation surge has not (so far) been passed on in full to wages. So the RBA may not need to raised interest rates further (unless the inflation rate trend towards the target 2%-3% 'band' doesn't proceed rapidly enough for the RBA).

Other assets (my online depository bullion account and Perth Mint, and the bullion value of my gold and silver proof coin collection) increased by $794 (2.26%) to $35,990. Bullion prices recovered part of the losses suffered the previous month.

Overall, NW increased by $86,366 (2.24%) to $3,949,786 during July. This is another new 'all-time high' for my NW estimate.

The tenants in my investment apartment have slowly fallen two weeks behind in their rent -- so the managing agent will see if they will agree to a plan to start making some extra payments to slowly get back up-to-date with the rent arrears. Otherwise a notice to terminate the lease will be issued (costing $60). I'd prefer the tenants remain, so hopefully they were just falling behind by the allowed 14 days and will at least pay their monthly rent in full from now on. Issuing a notice is often rather pointless, as if the tenants make a payment to reduce the arrears to less than 15 days at any time during the next two weeks the termination notice will be invalidated. And if they then fall behind by 15 days again, a new notice would have to be issued. This cycle can continue for months... Alternatively, tenants will sometimes vacate without giving notice when they receive a termination notice -- often meaning they are a month behind in rent before the managing agent and landlord finds out. This means that the two weeks 'bond' money is insufficient to even cover the unpaid rent, let alone cover the cost of repairs to damage the tenants may have caused. Theoretically the unpaid rent and any costs for repairs could be sought from the ex-tenants, but this is often difficult and financially not worthwhile. If the current tenants move out, hopefully it won't take too long to find new tenants (the rental market is fairly tight in Sydney, with vacancy rate still quite low at 1.7%) for the current rent (since rents are currently trending upwards in the suburb).

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