Jun 292014
 

I recently read an article about people who camped out for 3 days to be among the first to own the next “hot” thing on the market. What did those people wait in line for? A new smartphone? Nope. A sale on a 60 inch LED TV? Nope. How about a new condo. Yes! Within the first 5 hours of going on sale last Saturday, the first tower at Brentwood Mall, in Burnaby B.C., sold out of all 247 units. 😯 At least the buyers went prepared and brought with them tents and sleeping bags.

14-06-brentwoodcondo

By mid afternoon all suites – ranging from $299,000 to $949,000 – had been bought up. Welcome to the Greater Vancouver Area, where if you don’t camp out for 3 days you have no chance to buy a brand new condo project 😕

Speaking of real estate, last week I blogged about buying my first mortgage fund. So this means I have a new item to add to my net worth statement this month 🙂 On to the numbers.

*Side Income:

  • Part-Time Work = $600
  • Dividends = $500
*Discretionary Spending:
  • Eating Out = $100
  • Others = $100

*Net Worth: (MoM)chart_14jun net worth fiscal update

  • Assets: = $825,200 total (+6,300)
  • Cash = $800 (-9500)
  • Stocks CDN =$92,900 (+4100)
  • Stocks US = $52,100 (+1100)
  • RRSP = $42,400 (+600)
  • Home = $254,000 (same)
  • Farms = $373,000 (same)
  • MIC = $10,000 (+new)
  • Debts: = $527,900 total (-3,400)
  • Mortgage = $198,100 (-300)
  • Farm Loans = $206,100 (-400)
  • Margin Loan CDN = $30,800 (-200)
  • Margin Loan US = $24,900 (-1200)
  • TD Line of Credit = $32,600  (-400)
  • CIBC Line of Credit = $13,100 (-400)
  • HELOC = $19,700 (-100)
  • RRSP Loan = $2,600 (-400)

*Total Net Worth = $297,300 (+3.37%)
All numbers above are in $CDN. Conversion rate used: 1.00 USD = 1.07 CAD

June has been a great month. I saw a $9,700 increase to my wealth and there are no signs of the hot stock market slowing down. I suppose this is what happens when the Federal Reserves continues to dump $35 billion a month into the economy. I’m happy to add a new investment into my asset category. As a fixed income vehicle the principal of my MIC does not fluctuate day to day. I may buy more MICs in the future, possibly publicly traded ones next time. Stocks this month has performed very well, especially the technology companies like Google, Apple, and Amazon. I’m extremely happy with Intel’s stock. In mid June Intel announced that it thinks the PC market is still strong. Its share price is up 15% month over month, yay! In terms of debt I’m just slowly paying that down. The large drop of my U.S. margin loan is mostly due to the weakened $USD relative to my domestic currency 😛

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Random Useless Fact:

The 2 concentric circles below are perfectly round. #opticalillusion

circles-concentric

Jun 222011
 

The Canadian Loonie edged up higher today. As of right now you can trade 1 Canadian dollar for 1.028 US dollar. And the US based S&P; 500 is trading at a discount compared to the Canadian S&P;/TSX Composite index so I decided to take this opportunity to buy some US stocks because it’s like taking money that’s worth more to buy assets that are worth less (in terms of relative valuation to Canadian equities.)

I went with over 139 shares of Intel Corp (INTC-Q.) They design and manufacture microprocessors. The computer you’re using to read this post probably has an Intel chip in it. They are trading at 10 times earnings, with a nice dividend of just under 4%. They are a recession proof company (everyone uses computers), a leader in their field, and still have growth potential.

Another one I bought today is KKR & Co (KKR-N.) They buy/sell and manage assets and provide financial services to their clients. They are only trading at 8 times earnings, very cheap, they understand the capital markets very well and I believe they can find ways to make a profit in economic uncertain times like now. Plus the 4.5% dividend is pretty nice.

Of course both securities I’ve bought are in my RRSP brokerage account so the dividends wont get hit with any US with-holding tax. And I’ve bought enough of both to take advantage of re-invested dividends (DRIP.)