Tuesday 1 June 2021

Net Worth: MAY 2021

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

Stocks and managed fund investments decreased slightly this month, down $2,121 (-0.62%) to have  $341,453 net equity in my geared share portfolios.

Our estimated house price for May (my half) increased by $58,041 (6.69%) to $925,027. While the Sydney house market has been rising strongly, this monthly gain seems a bit high. Possibly due to the particular mix of sales in our suburb making the median price bounce around (in previous months our suburb median price appreciation had seemed rather subdued compared to the overall Sydney housing market).

The value of my retirement savings rose during May, to $1,417,878 (up $25,704 or 1.85%). 

The value of my precious metals rose significantly during May, to $24,377 (up $1,432 or 6.24%). 

Overall, my NW reached $3,007,427 by the end of May - up by a healthy $83,427 (2.85%).

I continue to include the value of the 'other real restate' (the lake house I 'bought' from my parents, and the off-the-plan unit I 'bought' with a 10% deposit and paid stamp duty on) at 'cost'. The portfolio loan used to pay the deposit on the unit and the stamp duty (and the remaining mortgage I'll need to obtain upon settlement in 2023) is listed under 'other mortgages'. In reality the value of the lake house has increased since I 'bought' it, but I will never realize that capital gain as I intend to leave the lake house to my sons, and although the value of the off-the-plan unit is likely to be higher than 'cost' (based on movement in unit sales prices in that suburb since I bought) I'll wait until I get a valuation done when the unit construction is completed before I start tracking changes in the unit's value.

I did indeed become a tri-millionaire before the end of the financial year (as I mooted last month might occur), but it could easily drop again. I remember when I first became a 'millionaire' prior to the GFC, only to see my NW plunge during 2008/9. It is also sobering to remember that Australia now has over 100 billionaires - so being a billionaire is similar to the level of relative wealth a 'millionaire' had back in the days of the Great Gatsby,  and being a 'millionaire' these days simply means you are comfortably middle class.

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