Monday, April 30, 2007

Net Worth - April 2007

Well it is time again for a net worth update. For those newer readers I do this every two months just to keep a pulse on how things are going.

Assets
House $240,000
RRSP $12,600
Old Work Pension $10,500
New Work Pension $800
Wife's RRSP $5200
Wife's Investment Account $5000
ING Savings Account $5800

Debt
Mortgage $148,400
Line of Credit $0

Therefore my net worth now stands at: $131,500. Overall an increase of +$46,050 or 54.5% from my last check up. Now I know this value looks huge, but keep in mind I did just get my over $7000 tax return and my house value has shot up a lot.

I should point out I determine my house value by looking at similar homes in the market place and account for improvements I make to the house. I've been keeping my estimates conservative to ensure they stay realistic. At the same time I've been realizing the market is picking up some serious steam lately. For example I recently saw a house very similar to mine with some extra improvements and an extra 100 square feet of space listed for $289,000. I just can't realistically undervalue my home by more than $50,000 so the value had to come up a bit larger of a jump than normal to cover the gap. I'm acutely aware that by using a conservative market price for my house that if there is a market crash my net worth will drop like a stone. Yet after being through a market like this once before with my last house I know you can't ignore it either.

Also please note that I'll submitting a post to the second Canadian Tour of PF Blogs which is going to be hosted by the Money Diva on May 7th. If you have any requests for a topic I'm open to ideas (since I currently don't have a clue what I'm going to write about).

Canadian Tour of Personal Finance Blogs

3 comments:

MillionDollarJourney.com said...

WOW, 50% jump in 2 months! Congrats!!

FT

Canadian Dream said...

FT,

Thanks. You have to love hitting a real estate market just before a boom.

CD

the money diva said...

FUNNY! I had just decided to do a similar reassessment of my home's value for April. I will post on this topic today and link back here to show that I'm not insane. :)
MD