Sunday 5 December 2021

Net Worth: NOV 2021

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

Stocks and managed fund investments increased slightly this month, up $2,907 (0.95%) to have $308,424 net equity in my geared share portfolios. This figure includes the outstanding balance of my 'portfolio loan' (home equity loan) that was used to fund some of my share portfolio purchases, but is also used to cover the $1,150 monthly 'overhead' of my financial planning business and was also used to pay the uni fees for my master of financial planning enrolment. Now that I have completed the last subject for the masters degree, there will be less 'drag' on the porformance of my geared share portfolio valuation next year (If I get accepted into as a PhD student there won't be any fees to pay, as there is RTS (research training scheme) funding available to cover the basic uni fees.

Our estimated house price for November (my half) increased by $75,142 (7.21%) to $1,116,769.

Real estate prices, including home units/apartments in the suburb where I purchased a one-bedroom apartment 'off the plan', continue to rise (there was a bit of a slump in apartment prices in Sydney last year due to Covid), so hopefully I won't have any trouble getting a mortgage for 'settlement' when the construction of the apartment block (88 by JQZ) is completed in Q2 2023. There seems to be a slight slow down in the current 'boom' in residential real estate in Sydney, with some pundits predicting slower rate of gain in the first half of 2022 and then a slight pull-back in prices in the second half of 2022. It's all guesswork of course, and a lot may depend on how the new Omicron variant of Covid-19 plays out - if international travel doesn't resume fully in 2022 then there will be less rebound in migration than expected.

The value of my retirement savings increased during November to $1,513,495 (up $10,297 or 0.69%).

Overall, my estimated NW increased to $3,272,071 by the end of November - up by $90,057 (2.83%). I am still recording the valuation of the lake house I 'inherited' (was gifted) by my parents at 'cost' (the value when I paid the stamp duty on title transfer) and the value of my 'off-the-plan' apartment at the purchase price plus stamp duty. That forms the 'other real estate' figure ($1,377,952) and the deposit+stamp duty+outstanding balance due at settlement (in Q2 2023) is the 'other mortgages' figure (-$1,040,452). I do track a rought estimate of the valuation of the lake house/hobby farm property and the likely value of the investment apartment, and using the current estimated valuations would increase my NW by around $553,976). I might start 'officially' tracking these valuation estimates (and including them in my NW calculation) once the off-the-plan apartment construction is completed and I get an official valuation done when I get the mortgage needed for settlement. That will give me a better idea of how my unit value compares to the median home unit prices for that suburb (at the moment it is a bit of a rough guess based purely on how much I paid compared to the median unit pricing for the suburb at the time I paid the deposit).

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