FIRE,  Life,  Real Estate,  Stock Market

May Net Wealth Update

Reading Time: 2 Minutes

Hello all!

Hm, well not too much has happened this month to tell the truth.

Of course, broadly speaking May saw the easing of social isolation measures for Aussies as a whole.

But we must remain vigilant people!

The risk of a 2nd wave is increasing each day as more and more of us step outdoors.

On a personal level, I haven’t made any enormous moves – just been steady as she goes.

I must admit I did get too greedy when the market bottomed in March, as I didn’t think valuations were on discount enough to plunge deep.

Which has seen me miss out on a LOT of the upside.

What’s worse, MrsFrugalSamurai decided to ignore my inclinations, and have a go herself… right… at… the bottom.

There’s now a dictionary with her face next to “smug” in it.

Maybe she should start her own personal finance blog?

Anyway, you can read last month’s April update here.

Net Wealth

Important Notes

The numbers (apart from the individual shares), are rounded given property is an illiquid asset (meaning values are not representation of sale price), and superannuation is a long-long-term asset.

Also, it is extremely difficult to mark-to-market real estate values on a monthly basis. This is because without any comparable sales, you can only guesstimate.

On that note, the real estate market is an interesting place right now.

There is minimal demand, no supply but also no foreclosures (thanks to the loan holidays).

My best guess is that it will remain in a state of flux until Sept/October, when government initiatives like Jobseeker and Jobkeeper as well as the repayment holidays end… then we’ll get a better idea as to the state of the economy.

May Update

  • Looks like things have stabilized from COVID-19… false dawn? Or was that it?
  • Been thinking a lot lately about how I acted during those crazy, crazy weeks in March… and ya know, at the time, I think I made the right decisions with the information at hand.
  • I scrapped our property for sale off the market. It’s still listed online but am not holding any inspections because…
  • A-MAZ-ING-LY managed to find a renter. Three hundred bucks a week, which is a 8.6% gross yield against the remaining loan. Lucky interest rates are so low. Fingers CROSSED it goes well.
  • Unfortunately there’s been an unusual amount of maintenance required across the property portfolio this month. Cash-flow-wise, bad timing to have them all so close – but that’s part of the game.
  • One thing I’ve noticed recently is the independent moves the ASX seems to be making, irrespective of what occurs in overseas markets. A few times now, after a big down day in the US market – the ASX would open lower… and then steadily rise throughout the day. The support levels are so strong at the moment – will they continue? Million dollar (literally) question.

I wonder what June will bring? More stability or a return to volatility? Leave your thoughts below please!

And of course, another joke to end this month’s series. Might make it a tradition going forward.

How do you tell the difference between a frog and a horny toad?

A frog says, “Ribbit, ribbit” and a horny toad says, “Rub it, rub it.”

Ewww.

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P.S. If you are reading this on the mobile version, for some reason some images don’t pop up, if you can’t see the spreadsheet, try it on tablet or desktop.

2 Comments

  • Steveark

    I’m curious, is $18k cash shown both your entire emergency fund and your entire working capital fund for all those properties? You are doing great on net worth but 18K seems to be a little thin at a glance. Do you base that on typical expenses for you and your rentals?

    • The Frugal Samurai

      Hey Steve, good point you make. If it was just $18k that would be a very skinny amount for basic expenses and working capital. The $18k is cash held in superannuation accounts (kinda like 401k for you guys), there is also around $176k sitting outside of the super account – which is the emergency/wait-for-market-to-crash-to-go-all-in fund.

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