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Thursday, 2 January 2020

Net Worth: December 2019

My estimated NW managed to increase by $28,079 (1.16%) during December. This was despite the stock market weakness that saw my geared stock portfolio decline by -$9,809 (-3.62%), and my superannuation savings drop -$3,814 (-0.33%) despite making the usual monthly SGL and salary sacrifice contributions. The overall increase in NW was due to the local house sales data reflecting the recovery in the Sydney real estate market, hence my half of the estimated valuation for our house increased by $41,458 (5.88%). The increase was unusually large as the local sales data had not been updated last month or two, so this change reflected several months of price adjustment in one hit.

My total estimated NW reached $2.442m, which is a new 'record high' as they like to say when talking about the stock market ;)

In the medium term (5 years) the trajectory of my NW will be largely dependent on how the stock market and Sydney real estate perform, as changes in asset prices will dwarf the impact of my savings. In the longer term a lot will also depend on whether the off-the-plan I've put a deposit on ends up being worth more than the purchase price by the time construction is completed in 2023, and how the Sydney property market performs in the next decade or two. Hopefully this investment unit will be 'positively geared' (i.e. the rental return is sufficient to cover the outgoings - loan interest, strata levy, rates etc.) by the time I retire. The completion of a new 'metro' train station close to the unit is due about the same time, so that should help with rental and vacancy rates. On the down side there is quite a lot of new unit (apartment) development occurring in the area, which might affect prices.

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