Alternatives,  Life,  Real Estate,  Stock Market

June Net Wealth Update

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Amazing that we are past the halfway mark of 2020 already.

Does anyone else feel like the height of the pandemic in March was only yesterday BUT somehow feels so long ago?

“Puts hand up”.

May’s net wealth update highlighted the risk of a 2nd wave, and with Victoria in lock-down and NSW seemingly next, that 2nd wave is on our doorstep.

Please.

No.

More.

I think most of us are pretty much over 2020 and just looking forward to 2021.

But I feel like we haven’t seen the last of the volatility, and with that – the rollercoaster of the markets…

I’ve been trimming some of my positions to try and build up more of a cash buffer to take advantage of any significant pull-backs.

You can read the May update here.

Net Wealth

Important Notes

The numbers are rounded for simplicity’s sake. A hundred here or 50 cents there has no bearing on the big picture.

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.

Speaking of real estate – there is more and more negative headlines these days.

From record rental vacancies to falls in capital cities house prices.

But it’s important to realize that not all property markets are the same. And certainly not all locales in a capital city are the same.

Our properties in the portfolio are typically in the lower end with decent rental yields that hopefully continue to be self-funding.

So I’m not too worried.

Of course, if the market turns drastically – then it’s all stations on deck.

June Update

  • From the relative stability of the last couple of months, looks like COVID is back. I won’t be surprised this time next month, when I write from lockdown v2.0.
  • I’m strongly considering to cut the losers in the stock portfolio and build up more of a cash buffer. I think there will be opportunities in the months ahead.
  • From a property perspective, we’ve had some developer interest about one of ours. Nothing crazy mind you, the market dictates price these days… but the values do represent a 4x cash-on-cash return in about 18 months. Not too bad, but we will not sell at that level.
  • Sigh, this month – maintenance and also bloody insurance costs have taken a bite out of the cash kitty. Am annoyed but what can you do.
  • And finally, MrsFrugalSamurai and I are in the market again for another property, however this time it most likely will be a family home. Stay tuned on that!

Suffice to say, been a fairly uneventful 6 months, haha.

Bring on the 2nd half I say!

Ooo, and I forgot, the customary joke to finish:

What do you call someone with no body and no nose?

Nobody knows.

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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.

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