Friday, June 29, 2007

Net Worth - June Update

How the time flies, it seems that I just did my last update. Anyway here we go.

Assets
House $294,400
RRSP $12,800
Old Work Pension $11,700
New Work Pension $1300
Wife's RRSP $5500
Wife's Investment Account $5000
ING Savings Account $6800

Debt
Mortgage $147,500
Line of Credit $0

Therefore my net worth now stands at: $190,000. Overall an increase of +$58,500 or 44.5% from my last check up.

Before anyone gets too excited I do need to remind you my house value has shot up a lot in the last four months which is driving these insane increases. I decided to use my home value as market value -8% to account for closing costs and fees if I cashed it out. That way I've got a set formula I use to determine my house value rather than just taking a conservative guess.

For those of you who may be doubting my local crazy house market I would like to point out that I know someone whom just sold their home for an over $100,000 profit after owing the house for just seven months and trust me when I say they just painted it, added some hardwood and put in a new furnace. That's it, that all they did. Talk about lucky timing that they previously bought an investment condo at the same time as the house and can move into that.

The result of all this is I'm 2.3 times my net worth from Dec 2006, which is almost completely driven my house value. If you strip out the house, I'm only up $3200 or 8% from April's net worth to now.

Overall the number looks good. I have to admit I'm curious to see how far this housing market will shoot up before crashing down. Could I end up living in a $500,000 house by the end of three years? If so it will be interesting, but in the mean time I'll just enjoy the ride.

4 comments:

Anonymous said...

Like I posted earler when you posted your net worth. Putting in your rising house value really skews your 'net' worth.

(Same reasons as before). And finally you're starting to understand them as well. But this time you accounted for the -8% when you do sell. (Last time your rebuttal was selling commission free!). Right!

Canadian Dream said...

Anon,

Please get a user account if you want me to tell you apart from anyone else otherwise you just blend into anyone using the Anonymous option.

Didn't I just state that in my post that I know that my house value is messing things up?

The -8% doesn't include commission. I would still avoid paying someone to sell my house, but that -8% does reflect the fact if you want to get a house sold RIGHT AWAY you have to price it just under market ( around -5%). I may actually clear more than that, but for the net worth posts I had to come up with a standard formula. So hence the -8% of market value.

CD

Jim said...

From your original Net worth (Nov 10/06), you've gained some money in your ING account and your wifes RRSP/Investments. (Around 8K?)

The rest is all your 'house' increase. What investments do you have of your own?

What stocks/bonds do you own?

Canadian Dream said...

Jim,

Investments are as follows:

My RRSP and LIRA accounts both are broken down as:

25% bond index
25% Canadian index
25% US index (S&P 500)
25% International Index

The wife's account is broken down into a couple of Canadian mutual funds. Which we are thinking about changing, but we are waiting to get a year worth of data between the index investing and her account to benchmark the performance.

Then the wife investment account holds two stocks. One is a junior diamond mine which is a complete speculation play, while the other is EIT.UN a fund made up of income trusts and ,starting earlier this month, other companies with decent yield.

CD