Retirement Portfolio Net Worth - as of Dec5-2018
The goal is a retirement portfolio net worth of $1,000,000 and an annual passive income of $40,000. We are currently mortgage free but won’t be including the value of our principal residence or cottage as we have no plans to sell either. We have also omitted the value of our workplace defined benefit pension plans and our children’s RESPs.
Well November was a big month for us. We bought our first multi-unit building for $230,000 this was the single biggest purchase we have ever made but I'm hoping it'll pay off in the future. The building is in great shape and when fully tenanted shows a healthy 8.9% cap rate. Since I was able to borrow the whole amount it seems like a great way to leverage our retirement account but still hold a tangible asset (while writing off the interest). Of course no rental unit is completely passive as there's inevitably going to be issues whether they be building repairs, vacancies, snow removal etc...
In an ideal world I would rather buy a basked of REITs for $230,000 and then collect the monthly distribution while literally doing nothing. However, it's much much harder to employ leverage with that strategy. Banks won't blink an eye at lending $230,000 for a physical rental property however, they are not "equity lenders" and won't lend money for stock purchases (even if the equity is secured against other equities). With that in mind I'm viewing the rentals as more of very part-time job as opposed to a completely"passive" source of income. I'm also pretty handy so I can do all the necessary repairs and upgrades on the units myself which saves money and is also somewhat satisfying.
Although we didn't add any money to our retirement portfolio we did add some money to our children's RESP which isn't included in the below figures.
ASSETS
Nov Contributions: $0
Retirement Portfolio: $481,821 (up $5,419 stock market gain)
Rental Property #1: $105,000 (lowest estimated selling price)
Rental Property #2: $155,000 (purchase price)
Rental Property #3: $230,000 (purchase price)
Total Retirement Assets: $971,821 (up $235,419)
LIABILITIES:
Investment Loan: $18,185 (down $1,289)
Rental Property Loan #1: $69,985 (down $679)
Rental Property Loan #2: $149,815 (down $534)
Rental Property Loan #3: $227,645
Total Liabilities: $465,630 (up $225,143)
Retirement Portfolio Net Worth: $506,191 (up $11,277)
Dividends Received (year to date): $13,225 (up $740)
Well November was a big month for us. We bought our first multi-unit building for $230,000 this was the single biggest purchase we have ever made but I'm hoping it'll pay off in the future. The building is in great shape and when fully tenanted shows a healthy 8.9% cap rate. Since I was able to borrow the whole amount it seems like a great way to leverage our retirement account but still hold a tangible asset (while writing off the interest). Of course no rental unit is completely passive as there's inevitably going to be issues whether they be building repairs, vacancies, snow removal etc...
In an ideal world I would rather buy a basked of REITs for $230,000 and then collect the monthly distribution while literally doing nothing. However, it's much much harder to employ leverage with that strategy. Banks won't blink an eye at lending $230,000 for a physical rental property however, they are not "equity lenders" and won't lend money for stock purchases (even if the equity is secured against other equities). With that in mind I'm viewing the rentals as more of very part-time job as opposed to a completely"passive" source of income. I'm also pretty handy so I can do all the necessary repairs and upgrades on the units myself which saves money and is also somewhat satisfying.
Although we didn't add any money to our retirement portfolio we did add some money to our children's RESP which isn't included in the below figures.
ASSETS
Nov Contributions: $0
Retirement Portfolio: $481,821 (up $5,419 stock market gain)
Rental Property #1: $105,000 (lowest estimated selling price)
Rental Property #2: $155,000 (purchase price)
Rental Property #3: $230,000 (purchase price)
Total Retirement Assets: $971,821 (up $235,419)
LIABILITIES:
Investment Loan: $18,185 (down $1,289)
Rental Property Loan #1: $69,985 (down $679)
Rental Property Loan #2: $149,815 (down $534)
Rental Property Loan #3: $227,645
Total Liabilities: $465,630 (up $225,143)
Retirement Portfolio Net Worth: $506,191 (up $11,277)
Dividends Received (year to date): $13,225 (up $740)
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