Bogan Wealth – June 2017

Now that I’m older and therefore wiser, it’s time to get my savings back on track – and that means some big changes.

Times are good – my shares are volatile but profitable, my tenants are paying rent as planned, and I still have a job. And yet, I can’t get my savings rate out of second gear.

Property expenses continue to drag down my savings. Insurance has increased 20% from last year; council rates are up as well. I had to pay both of these in one hit this month.

Unlike my landlord, I actually look after my tenants and my properties, but with flat rents I’m not being rewarded for it, and ultimately it’s costing me. It doesn’t help that my property manager doesn’t seem to like answering my questions.

Caterpillar-June17.png

The next few months could go either way. I could leap over my short-term-target net worth of 100K, or continue to fall dramatically short. How? I will be putting one property up for sale very soon. This has been planned since the beginning of the year, and with two months left on the tenants’ lease (and my renewed hatred for real estate agents) the time is right to reduce my crippling debt.

Moving on, my shares have copped it, for no fundamental reason – they’ve just been caught up in the recent sell-off. Had a nice recovery of 2% today though, it’s all swings and roundabouts really. Once I cash out of property, I’ll be able to finally enjoy some sexy compounding:

Compound.GIF

Barely independent by 30; very independent by 35

 

Here’s how I fared in my first month as a 26-year-old:

Property

2 houses on large blocks, still standing. Total value now at $440K with $380K debt. Interest only loans. Equity: $60K (No change)

Shares

$25,925 in seven six companies plus one LIC. I have received $54 in dividends (which are tracked here) this month. (Change: +$952)

Cash

$6,291 in an offset account, saving me 4.19% in interest. (Change: -$3,383)

 

Net worth june

Not Gouda. Can you tell I’m paid monthly?

Previous net worth: $94,590

 

Current net worth: $92,339 (-$2,251)

Swing and a miss! I’m still miles from $100K. Once I offload my properties, things should start to improve. Until then, I just need to keep chipping away I guess. My landlord also asked if we would renew our lease at a higher rate – even though they never fix anything. My response? This Youtube video sums it up.

COUNTDOWN: 48 Months Until I’m 30

It’s now been 37 months since I started investing & my net worth has grown at an average of $2,495 a month. Even with my shithouse savings rate, this is a return of about 8.3% p.a. Looking forward, this will actually grow to around $273K by age 30.

This doesn’t include my super, HECS debt, or my fully sick highly collectible V8 and dirt bike.

July next. Hopefully I’ll have some good news then. Chin up, old bean.

Advertisements

6 thoughts on “Bogan Wealth – June 2017

  1. Hearing you on the properties. We had one property agent I should have dumped ages ago, but life got in the way. We go to sell the place a few weeks ago and he throws his hat in the ring to sell it when all I asked him was to give access to another agent. Sorry mate you can’t manage the place, you sure as heck aren’t selling it for us – *cue your Youtube video*

    We just accepted an offer on the place today – $15K more than we wanted – happy days.

    Whilst property did well for us since we have been in the game since 09, the holding costs are biting.

    Index funds are calling my name.

    Like

      • We had an offer the day it went on the market which we accepted.

        Had an open house today just to see what interest was and had 2 more offers. Both under what we accepted though.

        Didn’t help the tenant for the open house invited all his friends around who bought a slab of VB along and took up the whole lounge room.

        It’s on the cheap side in a town 2.5 hours south of Sydney. Happy to be rid of it.

        Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s