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Home > April 8 net worth update (reflecting the new rental property)

April 8 net worth update (reflecting the new rental property)

April 8th, 2022 at 10:31 pm

Assets:
NT's UK pensions:
AV1: 22,397 pounds ($27,996)
SW: 27,225 pounds ($34,031)
AV2: 7,567 pounds ($9,459)
NT's trad. rollover IRA: $108,777
NT's Roth IRA: $69,327
NT's SEP/SIMPLE: $3,796
AS's trad. rollover IRA: $27,320
AS's Roth IRA: $97,469
AS's SEP IRA: $73,073

AS uninvested cash: $6,013
CJ's 401(k): $229,833
CJ's Roth IRA: $75,125
CJ/NT/AS house: $592,200 ($630,000 value -6%)

CJ/NT/AS rental property: $520,760 ($554,000 value -6%)
---
TOTAL ASSETS: $1,875,179

Debt:
Main mortgage $359,456

Rental property mortgage: $396,351

Loan from friends (duplex) $9,000
---
TOTAL DEBT $764,807

Current Estimated Net Worth: $1,110,372

December 2021 estimate: $1,208,835

Change in net worth: -$98,463

Summary: I didn't update net worth for a few months, hoping the markets would recover and we'd have a positive update, but I don't know when that's gonna happen and I wanted to refresh the net worth sheet to reflect the rental property we bought.

We're down nearly $100K from December's net worth. About half of that is losses in our retirement portfolio value, and the other half is from buying the house. We had $188K of proceeds from selling NT's UK flat in the previous net worth update. From that, we made a $133K down payment, and about $30K went to closing costs, repairs, and covering the mortgage and utilities until it's fully rented. The other $25K is sitting in savings, but I'm not counting it toward our net worth since it's there to cover further repairs or expenses. (One unit will be occupied come May 1, but the other one is still not rented, so the mortgage is not quite covered and we're paying utilities on both units for now.)

So, it's not great news on the net worth, but hopefully it'll be smooth sailing soon in both the stock market and on the rental property front!

Notes on the numbers above: House value estimates are usually approximate. UK pension values updated about once a year. UK asset values are calculated figuring $1.25 for every British pound (just to have a system, even though the exchange rate varies).

 

 

Posted in Tracking Net Worth | 4 Comments »

4 Responses to “April 8 net worth update (reflecting the new rental property)”

  1. Amber Says:
    April 9th, 2022 at 11:32 am 1649503931
    1649503931

    Congratulations on the rental

  2. LivingAlmostLarge Says:
    April 9th, 2022 at 09:25 pm 1649539511
    1649539511

    congrats on the new rental? What made you decide to buy a rental now instead of waiting? Did you already pay taxes on the profits from the flat?

  3. ceejay74 Says:
    April 9th, 2022 at 09:49 pm 1649540982
    1649540982

    Yeah, we paid capital gains tax in the UK shortly after we sold it. We still need to do 2021 U.S. taxes, and '21-'22 UK taxes, but we figure any extra taxes are going to be minimal since the U.S. doesn't double tax. So we should have more than enough in savings to cover anything. Basically I figured we were waiting to wrap up those two tax events, but that the impact was so unlikely to be big, that it was just dragging our feet. We started looking around in November and found the perfect property, so we went for it! Closed in mid-January.

  4. rob62521 Says:
    April 14th, 2022 at 03:38 pm 1649950681
    1649950681

    Way to go on the rental!

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