The American economy is starting to pick up. U.S. stocks have held steady in September, real estate prices are expected to be 7% higher than last year, and second quarter GDP shows expansion However the Canadian stock market dropped 4.3%, the price of oil fell $3 per barrel, and the value of the Loonie sank to just 89.4 cents U.S. And yesterday StatsCan revealed that our July GDP was flat :(. A large part of our economy relies on consumer spending. But Canadians simply don’t shop the same way Americans do :?.
Thankfully my finances held up okay in September. I did lose about $5,600 of value in my stock portfolio. It’s hard to make money when the entire S&P/TSX Composite Index takes a big hit. However I still managed to end the month with a net worth increase of +$1,400. This is largely due to my rental income which came at the end of the month. I deposited this payment of $5,177 into my bank account. This represents the second and last payment of the year. Phew, if it wasn’t for this payment I’m afraid my net worth would have dropped by several thousand dollars in September. But instead I eked out a small gain!
What a coinkydink. Just as I experience a month of stock market decline my farmland investment pulls through for me. I decided to use the extra rental money to pay down some of my debt.
- Part-Time Work = $500
- Dividends = $400
- Eating Out = $100
- Others = $200
*Net Worth: (MoM)
- Assets: = $836,000 total (-3,900)
- Cash = $3400 (+1200)
- Stocks CDN =$88,700 (-5300)
- Stocks US = $52,900 (-300)
- RRSP = $49,000 (+500)
- MICs = $15,000 (same)
- Home = $254,000 (same)
- Farms = $373,000 (same)
- Debts: = $525,700 total (-5,300)
- Mortgage = $196,900 (-400)
- Farm Loans = $204,800 (-400)
- Margin Loan CDN = $27,500 (-2200)
- Margin Loan US = $24,900 (+700)
- TD Line of Credit = $31,000 (-1000)
- CIBC Line of Credit = $11,600 (-400)
- HELOC = $18,500 (-100)
- RRSP Loans = $10,500 (-1,500)
*Total Net Worth = $310,300 (+0.45%)
All numbers above are in $CDN. Conversion rate used: 1.00 USD = 1.12 CAD
Apparently the severe weather in the prairies this year has not deterred farm buyers Alberta received a lot of snow. Saskatchewan and Manitoba experienced pretty bad flooding. Yet according to a Re/Max report land prices are still going up.
“Land in short supply left “well-financed” Alberta farmers ready to make a deal on short notice, Re/Max said, noting tiled land, for example, sold for as much as $10,000 per acre in southern Alberta, up 20% over the previous year.”
“In Saskatchewan, prices increased from between $1,500 and $2,000 an acre in 2013 to between $1,800 and $2,200 in 2014. Manitoba saw its price range go from between $1,350 and $1,600 to $1,500 and $2,000.”
My Saskatchewan farms are currently worth about $1,200 an acre on average. If we assume that report is accurate then even a conservative $100/acre increase would give me a solid $31,000 capital appreciation for this year alone