April saw my net worth increase by 3.3%, with positive movements in all major asset categories.
The value of my investment portfolio increased by around 0.7%. Purchases were limited to standing monthly purchases of the HK & China indices, with no dividends in the month. I am still in two minds about whether to continue increasing my exposure to China but the monthly investment is currently very small.
My pension fund unit values increased by around 2%, with gains mainly in western equities.
Property rental income was paid in full & on time with no additional expenses. I increased the recorded value of my property by another 5% following strong market increases & local sales. It is still held at around 10% below the implied market value, reflecting my skepticism around the sustainability of current valuations.
Cash balances increased with good income & average expenses. The month's expenses included holiday expenditure that had been budgeted for.
Year to date net worth growth: 15.7%
Year to date savings rate: 76%
Tuesday 29 April 2014
Wednesday 2 April 2014
Property valuation
I was shocked again today to see how quickly some UK property prices are rising, particularly around the London area.
Whilst its only around 3 months since i last reviewed and increased the value i record my rental property in my personal finances, checking local valuations again today showed another material increase. The valuations appear to be genuine too, with a neighbouring (and almost identical) property just being sold for around 18% above the value i was holding mine at.
I have therefore decided to add an extra 5% to my property value in my assets and net worth calculations. While this still keeps it around 10% below 'the market', it does reflect the recent increases and allows a margin of error for some fluctuations going forward.
I am also keeping a close eye on potential capital gains tax changes which may determine whether i continue to hold or sell this property. Whilst it is tempting to sell now and realise a large tax free gain, my cash balances are already too large a proportion of total assets and the rental yield is double what i can earn on cash.
Whilst its only around 3 months since i last reviewed and increased the value i record my rental property in my personal finances, checking local valuations again today showed another material increase. The valuations appear to be genuine too, with a neighbouring (and almost identical) property just being sold for around 18% above the value i was holding mine at.
I have therefore decided to add an extra 5% to my property value in my assets and net worth calculations. While this still keeps it around 10% below 'the market', it does reflect the recent increases and allows a margin of error for some fluctuations going forward.
I am also keeping a close eye on potential capital gains tax changes which may determine whether i continue to hold or sell this property. Whilst it is tempting to sell now and realise a large tax free gain, my cash balances are already too large a proportion of total assets and the rental yield is double what i can earn on cash.
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