Friday, December 31, 2010

Another milestone

Although my monthly net worth calculations do not reflect either (i) changes to the values of our properties or (ii) mrs traineeinvestor's assets and liabilities, I do run a separate consolidated balance sheet which reflects both of these factors and which is updated less frequently.

As part of my year end review, I updated the property valuations and outstanding mortgage balances and found that we have now reached the position where all of our properties have more than 50% equity (i.e. the amount of outstanding principal owed on each mortgage is less than half the value of the underlying property). This result is due to a combination of monthly principal payments and higher valuations as the local property market has risen this year.

The range of gearing ratios is 0% (i.e. no mortgage) to 49%. Assuming no further changes in valuations, the gearing ratios will continue to fall each month as additional mortgage payments are made.

1 comment:

Anonymous said...

Hi Sir,

Great blog. I have read through your posts but could not find any indication on the level of gains you have made on the properties purchased. Can you give a few examples of the price of purchase, say, in 2003 or 2004, and also the market value now. I would like to know what is the capital appreciation per annum for those properties you have purhased over the years.

Thx a lot