Net Worth – August 2007 Update

I know I’m a bit early on this post, but I slept in this morning and it’s my only draft that was close enough to a complete post to use. So here we go.

Assets
House $299,000
RRSP $13,200
Old Work Pension $11,600
New Work Pension $2300
Wife’s RRSP $5500
Wife’s Investment Account $8400
High Interest Savings Account $2100

Debt
Mortgage $145,700
Line of Credit $0

Therefore my net worth now stands at: $196,400. Overall an increase of +$6,400 or 3.4% from my last check up.

There appears to be a bit of calming in the real estate market here. I’m hearing less stories of over bidding on houses, but the other thing I’m seeing is less listings in my area. So trying to gauge my house market value has been difficult. So this month I’m only increasing the value by $5,000 which is only based on one ‘sort of’ similar house that went for sale in the area.

The stock market slide has also impacted the accounts overall. They don’t look as bad as they should because the cash added to the accounts has been covering their losses overall so I’m at least breaking even on most of the investment accounts right now. I’ve taken most of the extra cash that we had in the old ING account and picked up some more EIT.UN. By the way I made the switch over to RBC’s high interest account, the thought of instant transfers was just too appealing. I guess this is the end for the traditional savings account. One last thing I did in the last while was prepare the mortgage to start accelerating it’s pay off.

So given the cooling in the local real estate market and the slide in the stock market I’m happy with my increase over last time. After all I’m still up by 145% from my net worth at the end of 2006.

6 thoughts on “Net Worth – August 2007 Update”

  1. Our real estate market has cooled here as well (Edmonton and area). As I have vested interest in continued performance, I’m hoping it’s primarily related to a summer slump and an excess of listings due to relocations. I think the market will pick up back to a 5-10%/year appreciation pace over the next few months, though the “boom” certainly seems to have quieted.

  2. Will,

    There is a bit of a seasonal cooling in the market at this time with the kids going back to school. Parents like to avoid moving mid-school year if they can.

    I’m rather hoping we drop down to a much more normal yearly increase of 5%. It’s been messing up my net worth for about half a year and it would be nice to have more sustainable gains in the long run.

    Tim

  3. CD

    I guess it’s all speculation isn’t it. And, truth be told, being “wise” investors, counting on primary residences is something of a moot point anyway.

  4. April / May & Sept / Oct are usually peak seasons for buying / selling so you may be right about the last few months.

    I would caution that 5-10%/yr is not typical though and as Will mentions, its probably best not to rely too much on primary residence to increase your net worth (coming from someone who is seeing the opposite!)

  5. Telly,

    I’m actually only relying on my house to maintain it’s price with regards to inflation for the retirement plan. After that it’s pure bonus to me.

    That is why I rather like the idea of fixing up the house a bit a making a profit perhaps another 9 years down the road. It would just accelerate the existing plans.

    Tim

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