Wednesday 1 November 2023

Net Worth - OCT 2023

Chart updated to end of October in sidebar.

Stocks/cash increased $5,953 (+2.82%) to $217,1164. This was mostly due to me lodging my 2023 tax return last month and receiving a tax refund of around $6K due to the investment unit making a net loss since settlement in late Feb (with the depreciation schedule adding considerably to the tax loss. However, a little know fact is that the claimed depreciation has to be removed from the 'cost base' of the investment property, so while you gain an immediate income tax reduction, you will ultimately give half of it back if/when the property is sold and you calculate the realized capital gain)..

Retirement savings (SMSF etc) decreased by -$19,125 (-1.26%) to $1,503,719 in line with the market trend and our asset allocation. We moved $50K from our SMSF cash account into a new investment in Vanguard Australian Shares High Yeild Fund (VAN0104AU) during October. I will transfer another $20K from the ANZ V2 cash account into our Vanguard SMSF account this week to make an additional $20K investment into this fund. DS1 and DW are making sufficient contributions into the SMSF to accumulate sufficient cash to cover the SMSF tax bill next year and DWs minimum pension withdrawal,

Est. of Home valuation (my half) decreased by -$7,670 (-0.73%) to $1,046,809. This was mostly due to ceasing to provide their monthly 'suburb snapshot' information about median sales price for a particular postcode, so I had to use data from similar data provided by - unfortunately they break down the median prices by # of bedrooms in the house or unit, so I had to change to the closest equivalent figure that was in line with reality (ie. house and unit size). The 'Other real estate' (my 'lake house' and the investment apartment) increased considerably over the past month by $91,084 (4.40%) to $2,161,472. However the change in data source made this figure fluctuate considerably, and is probably not a particularly accurate estimate of the actual market values.

The outstanding balance of the investment property mortgage remains at $999.993 during the 'interest only' period of the mortgage. I have about $127K sitting in the loan offset account (which is included in the stocks/cash figure), which helps reduce the monthly interest charged.

Other assets (my online depository bullion account at  Perth Mint, and the bullion value of my gold and silver proof coin collection) increased by -$2,864 (8.08%) to $38,290. The lack of correlation between bullion prices and the stock and property markets is one of the (few) reasons it can be a good idea to have a small (<5%) amount of bullion in your overall asset allocation, simply to reduce portfolio volatility without too much overall decrease in portfolio return.

Overall, NW increased by $73,106 (1.87%) to $3,975,461 during October. But I have no idea how close to reality (market value) this figure really is.

The tenants moved out of my investment unit on 25 October, so the agent is now advertising for new tenants. They left owing four weeks of rent - which will just be covered by their bond and rent deposit, Fortunately there was no significant damage to the unit that would require repairs. The agent estimates the rent should now be around $880-$900 per week, so it is being advertised for $890.week, Considering the unit rented for $850.wk back in Feb (and this was about $50 higher than otherwise due to the tenants having a dog, and most landlords in the unit would not allow pets), the rent has increased considerably in little more than six months. Hopefully the apartment won't remain vacant for too long.

.Subscribe to Enough Wealth. Copyright 2006-2023

No comments: