I've mentioned a few times in the last year my plans to use some of my cash reserves to add a new property investment to my assets.
This is partly due to a positive experience with my existing property investment, partly my reluctance to materially increase my stock market investments, and partly due to my desire to earn a greater yield than that available on cash. My cash reserves have also been well above my target for some time.
Following some on and off research starting last summer i've finally got around to putting in an offer on a property, which has just been accepted.
In terms of numbers, it isn't huge, but does yield well above my existing property with a potential gross yield over 6% and a net yield after taxes & costs over 4%. It looks to be in excellent condition so it should be possible to get it onto the rental market quickly after completion.
Away from the numbers, i found it refreshingly easy & emotionless bidding for a property purely as an investment rather than somewhere i would be living. Hopefully the legal side will run as smoothly over the coming weeks.
Wednesday, 1 April 2015
Monday, 30 March 2015
March 2015 Review
March saw my net worth increase by 8.9%, mainly a result of larger than expected lump sum income.
The value of my investment portfolio was around 1% higher, with a lot of volatility during the month. There were no new purchases as i struggle to see value following rallies across most markets. A lot of my ETFs also paid dividends during the month.
My pension fund unit values were fairly flat, there seems to be some time lag for equities market movements flowing into to the pension unit prices, so these don't always move in line with the market on a day to day basis. They are up over 4% for the year though, which is consistent with the year to date increase in my investment portfolio.
Property rental income was paid in full & on time. I've been actively pursuing new property investments during the month. I'll separately post about these should there be any progress.
Cash balances were materially higher due to a large lump sum income. I've spent a lot of time this month updating how i manage my cash in light of this increase. This has seen all funds not being held back for emergencies & investments being placed in longer term time deposits at higher interest rates. That being said, i've kept a lot of cash available at short notice for a potential property investment, so the overall cash yield has stayed fairly flat.
The spike in income has temporarily distorted up my year to date savings rate to 82%. This should drift back down towards 60% as the year progresses.
Year to date net worth growth: 12%
Year to date savings rate: 82%
The value of my investment portfolio was around 1% higher, with a lot of volatility during the month. There were no new purchases as i struggle to see value following rallies across most markets. A lot of my ETFs also paid dividends during the month.
My pension fund unit values were fairly flat, there seems to be some time lag for equities market movements flowing into to the pension unit prices, so these don't always move in line with the market on a day to day basis. They are up over 4% for the year though, which is consistent with the year to date increase in my investment portfolio.
Property rental income was paid in full & on time. I've been actively pursuing new property investments during the month. I'll separately post about these should there be any progress.
Cash balances were materially higher due to a large lump sum income. I've spent a lot of time this month updating how i manage my cash in light of this increase. This has seen all funds not being held back for emergencies & investments being placed in longer term time deposits at higher interest rates. That being said, i've kept a lot of cash available at short notice for a potential property investment, so the overall cash yield has stayed fairly flat.
The spike in income has temporarily distorted up my year to date savings rate to 82%. This should drift back down towards 60% as the year progresses.
Year to date net worth growth: 12%
Year to date savings rate: 82%
Friday, 27 February 2015
February 2015 Review
February saw my net worth increase by 1.3%, mainly a result of strong pensions performance and high savings.
The value of my investment portfolio was flat, with only a small amount of dividends and no significant investments during the month. Many equities markets are looking quite high at the moment (with a new high reached in the FTSE100), so i'm sitting on the sidelines for now.
My pension fund unit values increased by around 2% from strength in the HK and UK equities markets.
Property rental income was paid in full & on time.
Cash balances were higher, with healthy income, low expenses and a lower tax accrual (i'd over accrued). Cash should spike up again in March from an expected lump sum of income.
Year to date net worth growth: 2.8%
Year to date savings rate: 61%
The value of my investment portfolio was flat, with only a small amount of dividends and no significant investments during the month. Many equities markets are looking quite high at the moment (with a new high reached in the FTSE100), so i'm sitting on the sidelines for now.
My pension fund unit values increased by around 2% from strength in the HK and UK equities markets.
Property rental income was paid in full & on time.
Cash balances were higher, with healthy income, low expenses and a lower tax accrual (i'd over accrued). Cash should spike up again in March from an expected lump sum of income.
Year to date net worth growth: 2.8%
Year to date savings rate: 61%
Thursday, 29 January 2015
January 2015 Review
January saw my net worth increase by 1.5%, mainly a result of a good month for my investments & lower expenses.
The value of my investment portfolio increased by around 3% with strong performance across many markets, albeit with increased volatility and some pull backs at the end of the month. Favourable fx movements also impacted the value of a number of my ETFs. There were no notable investments during the month.
I also updated the fx rates used to assess net worth, following further strengthening of HKD & USD against GBP. This had a favourable impact.
My pension fund unit values increased around 2% from strength in equities markets.
Property rental income was paid in full & on time.
Cash balances were higher, with healthy income & relatively low expenses to start the year. Lets hope the rest of the year continues in this manner.
Year to date net worth growth: 1.5%
Year to date savings rate: 54%
The value of my investment portfolio increased by around 3% with strong performance across many markets, albeit with increased volatility and some pull backs at the end of the month. Favourable fx movements also impacted the value of a number of my ETFs. There were no notable investments during the month.
I also updated the fx rates used to assess net worth, following further strengthening of HKD & USD against GBP. This had a favourable impact.
My pension fund unit values increased around 2% from strength in equities markets.
Property rental income was paid in full & on time.
Cash balances were higher, with healthy income & relatively low expenses to start the year. Lets hope the rest of the year continues in this manner.
Year to date net worth growth: 1.5%
Year to date savings rate: 54%
Sunday, 25 January 2015
2015 Planning
Looking ahead to 2015, i'm hopeful it can be another successful year for my personal finances.
Based on my projections i'm expecting a fairly similar year to 2014 in terms of income & expenses. This would translate to a net worth growth of roughly 15% and a savings rate just over 60%. Whilst employment income is to some extent uncertain, it is comforting to see my passive income (from property investments & cash) continue to grow as my asset base grows.
In expenses, there may be some increases as the rental contract on my current accommodation is due for renewal. In addition, travel and other personal expenses are somewhat uncertain at this stage, although nothing major is planned.
Regarding my investment outlook, i'm conscious of the recent rallies across many equities markets, which may slow down the rate of growth in my investment portfolio. However, i'll be looking to take advantage of any market corrections.
In addition, it is looking more likely that i'll make a further property investment during the year, as i look to manage down my cash reserves, which are currently running at around 34% of total assets.
Away from personal finances, i'll also be continuing my long standing objective of improving fitness, which has proved less successful than my financial objectives in recent years!
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