Comments on: July 2009 Net Worth Update (+1.75%): Big Home Expenses

By: FrugalTrader

FrugalTrader — Wed, 19 Aug 2009 10:22:41 +0000

Hey DAvid, you are right, I should be adjusting my home value. I think it’s a combination of laziness and leaning on the side of caution. However, in the new year, I think I will do some valuation adjustments.

By: DAvid

DAvid — Wed, 19 Aug 2009 03:40:05 +0000

FrugalTrader,

I don’t see why you don’t adjust your home value at some reasonable interval. Here in BC, we get an annual market appraisal as part of the taxation process, so annually in January is a reasonable interval here. My concern with your current practice is it does not accurately reflect your net worth. If values were to drop below your purchase price, it would be folly to be still claiming you home is worth it’s purchase price, so why not include increases?

Additionally, you don’t value your portfolio at the book value, so to make the value of you home comparable, shouldn’t it, too be adjusted?

DAvid

By: FrugalTrader

FrugalTrader — Tue, 18 Aug 2009 20:58:51 +0000

Hey Bob, feel free to ask away.

1. The savings had a negative b/c I withdrew from the account to pay for expenses.
2. I’d prefer to keep the home value as purchase price as I’d rather not deal with a fluctuating market value. My home is approximately worth 20% more than purchase, but the market around here has been very aggressive and who knows when there will be another correction.

By: Bob

Bob — Tue, 18 Aug 2009 18:57:18 +0000

Probably silly questions as I’m not a regular here but…

1. How does the percentage interest work behind some of your numbers? For instance “Savings: $10,000.00 (-9.09%)” if I understand this correctly, you’re losing money on your savings? I assumed this is your PC Financial Savings account but that doesn’t make sense.

2. why value your home at the original purchase price instead of market value, or the value used to obtain your HELOC?

By: FrugalTrader

FrugalTrader — Tue, 18 Aug 2009 11:50:08 +0000

Brendan, I have sold off most of my non-reg investments, but remain to hold onto a few. With the large correction last year, I just couldn’t sell the stocks at such a low price. Come to think though, now may be a good time to unload some of them.

By: Brendan

Brendan — Tue, 18 Aug 2009 00:35:56 +0000

I am curious as to why you have 17K in non registered investments?
Isnt the SM strategy to pay down your mortgage with the investments and reborrow the same amount?

By: nobleea

nobleea — Tue, 04 Aug 2009 17:12:29 +0000

Father of Five: The HRTC just needs royal assent. It’s a rubber stamp. There’s no way it would get cancelled, regardless of an election.

FT: With building a fence, organizing a garage (I think any shelving is valid), landscaping, shed, etc, you might be well on your way to maxing out the HRTC. If not, you can buy commodity stuff (lumber/drywall, electrical) for the basement and just store it there until you’re ready next year, in order to capture the 15% discount.

By: cannon_fodder

cannon_fodder — Mon, 03 Aug 2009 17:02:42 +0000

FT,

Yes, I still plan to hold mine for the foreseeable future. My SM portfolio needs some diversification from financials and TCK helps. It’s almost tripled in price from where I bought it and I do believe that they will reinstate a reasonable dividend (around 4.5%) perhaps late 2010 or in 2011.

The only negative is that it represents the biggest percentage position in one equity in all of our investment holdings (RRSP’s, RESP’s, TFSA’s, SM portfolio) because it has risen so quickly.

By: FrugalTrader

FrugalTrader — Mon, 03 Aug 2009 16:28:41 +0000

Frugal W, as mentioned before, the pension is my wife’s pension plan. That’s a good idea about the income statement/budget, I will look into it.

By: Frugal-Wannabe

Frugal-Wannabe — Mon, 03 Aug 2009 16:25:26 +0000

FT, could you please explain your pension amount? is it CPP how do you know the actual amount?

Also, any chance you could share your income statement sheet / monthly budget with us?

By: FrugalTrader

FrugalTrader — Sun, 02 Aug 2009 20:58:13 +0000

cf, unfortunately, I did sell the remainder of my TCK.B shares (100 shares). Do you still hold yours?

By: cannon_fodder

cannon_fodder — Sun, 02 Aug 2009 20:35:33 +0000

FT,

That means you still hold Teck, right? Must be one of your best performers in spite of suspending the dividend.

By: FrugalTrader

FrugalTrader — Sun, 02 Aug 2009 14:10:06 +0000

Tember, I sold the property to my tenants as we had a prior agreement to do so.

Kumar, no big changes to my SM portfolio since the last update. I’m still waiting for a pullback! :)

By: Kumar

Kumar — Sun, 02 Aug 2009 13:45:38 +0000

Congrats FT!
Any changes to your holdings inside the SM investment account since June 17th? (I think your last posting of the holdings)

By: Tember

Tember — Fri, 31 Jul 2009 23:04:08 +0000

I see you crossed out your rental property. Did you sell – can you comment why?

By: Amanda Rush

Amanda Rush — Fri, 31 Jul 2009 14:17:04 +0000

Wel this is indeed a great post that can help us get a lot of ideas when it comes to hgandlin our finances well.

By: Father of Five

Father of Five — Fri, 31 Jul 2009 13:56:45 +0000

I heard on CBC yesterday that the home renovation tax credit is not yet passed into law. Given the possibility of an election I am becoming hesistant about spending $10,000 to “maybe” get back $1,350. I suspect Harper might use it as a ploy, saying to Canadians that if you don’t vote Conservative, then you might not get your $1,350.

By: Blogging Banks

Blogging Banks — Fri, 31 Jul 2009 11:32:18 +0000

Way to go MDJ! A 17% gain is a very good advance, considering that we are jsut halfway done with the year. Are you shooting for a 20% increase in networth?

By: Jaeydaad

Jaeydaad — Fri, 31 Jul 2009 02:06:33 +0000

I was about to ask you for a post on where you started and how far are you from your destination.

By: Ms Save Money

Ms Save Money — Thu, 30 Jul 2009 18:23:27 +0000

wow congrats on the 17% increase :) looks like you’re doing very well. I just started saving money this year and currently my networth is at negative $14,400. The only thing I owe is student loan and car loan.