We have had an incremental increase in our net worth (+$30,000) resulting from a lift in the value of one of our future income properties. Without further ado:
- We marked up the value of our second presale unit given the increasing heat in the Vancouver condominium market
- Ms. Frugaler had additional room in her RRSP (tax free savings account), and we contributed $40,000 (see decrease in cash)
- We used some cash to pay for Ms. Frugaler’s RRSP investment
- Timing, nothing else. We don’t carry credit card balances, outside the MBNA zero % credit cards
You may recall in my last post I suggested our net worth would reach ~ $2.1 million this year. With $31k in Q1, if we annualized we would be close to that goal; however, I have great news – I think we will beat that goal.
Additionally positive, while I had suggested in prior posts that we might have lost value on our single family home, it turns out I was off. Current appraisals are coming in at ~ what we paid for the land, if not $50k higher. Given that, if we can assume that in design / building we are adding value to the property, it may be that next year when it completes we will be up a couple hundred thousand dollars – excited to see…
Why do I think that? It turns out we may get a much more favorable construction loan than previously anticipated to build our house; thus, while I thought we would need to fund ~ $1 million ourselves, that is looking closer to $500k, which would leave us $500k to invest this year; as such, we ought to expect to generate additional investment income this year. Once I know more what we are intending to invest in, I can share what I think the returns are going to be for the Frugaler family.
At this point, I am continuing to feel blessed and starting to actually consider whether I should give up the ‘rat race’ and pursue life passions / reduced hours. In Q2, I will be running some analysis with my wife to determine what minimum salary I can afford in order to not have to ‘work’ as I do today. As with many financially independent people, retirement would not be “don’t work”; instead, it would be work at something I am passionate about and enjoy. It is to be determined what that would be.