Our "rates" or property taxes are up 30% from last year! Presumably this is partly because of the shift in this state from stamp duty on buying a house (we paid $A 27,000 when we bought this house) to land taxes over time. Only the value of the land is taxed here in Australia, not the structure on it. For "townhouses" like ours - our house is actually a separate house - that are part of a body corporate (condo association) the land is valued as a share of the overall value of the land in the development. Our land share is only valued at $A168k, when a similar individual block in this suburb would be about $400k. So, this means our property tax is much lower than if we didn't live in a development like this. It's still $1,970 per year.
I just noticed that taxes on commercial property are outrageously high. The value in excess of $A600k is taxed at almost 5%. So you would pay about $A40k a year on land valued at $1 million.
Sunday, August 20, 2017
Thursday, August 03, 2017
July 2017 Report
Here are our monthly accounts (in AUD):
"Current other income" was very high at $26k due to a lot of money coming in from a consulting project. Spending (not counting mortgage), on the other hand was moderate at $5.6k. After deducting the mortgage payment of $3.9k (which includes
implicit interest saving due to our offset account - the actual mortgage payment was about $690 less than this), we saved $16.5k on the current account and added $3.5k in added housing equity. Retirement contributions were lower than recently at $2.9k. I have stopped my voluntary retirement contributions due to the reduction in the concessional contribution cap from 1 July. Moominmama's employer also cut their contributions to her account since the beginning of the new financial year. Even though she has been working part time since the beginning of the calendar year they made contributions at the full time rate up till now. Housing equity increased by $2k. Net saving was, therefore, $21.3k across the board.
The Australian Dollar continued to rise from USD 0.7681 to USD 0.7981. The ASX 200 fell by 0.01%, the MSCI World Index gained 2.83%, and the S&P 500 2.06%. We gained 0.34% in Australian Dollar terms and 1.88% in US Dollar terms. So, we outperformed the Australian and underperformed the international markets. The best performer in dollar terms was Platinum Capital, gaining $4.0k across our various different holdings. The worst performer was the Unisuper superannuation fund, losing $2.9k. Hedge funds was the best performing asset class in percentage terms thanks to Platinum Capital, followed by private equity. All other asset classes gained apart from large cap Australian stocks which lost 0.04%.
As a result of all this, net worth rose AUD 27k to $1.864 million (new high) or rose USD 76k to USD 1.488 million (also a new high).
The Australian Dollar continued to rise from USD 0.7681 to USD 0.7981. The ASX 200 fell by 0.01%, the MSCI World Index gained 2.83%, and the S&P 500 2.06%. We gained 0.34% in Australian Dollar terms and 1.88% in US Dollar terms. So, we outperformed the Australian and underperformed the international markets. The best performer in dollar terms was Platinum Capital, gaining $4.0k across our various different holdings. The worst performer was the Unisuper superannuation fund, losing $2.9k. Hedge funds was the best performing asset class in percentage terms thanks to Platinum Capital, followed by private equity. All other asset classes gained apart from large cap Australian stocks which lost 0.04%.
As a result of all this, net worth rose AUD 27k to $1.864 million (new high) or rose USD 76k to USD 1.488 million (also a new high).
Sunday, July 02, 2017
June 2017 Report
This month we spent a lot of money. We went on vacation to Singapore - our first trip overseas with little Moomin. Since last year there are now direct flights between our city and there - one of two international destinations now available on direct flights. I think next time we will go to the other country where the weather is much more to my liking, at least in the summer. The trip ended up costing a lot more than expected...
This month's accounts are very preliminary as they include estimates of franking (tax) credits on managed funds ($3.9k) that we won't actually know till the end of July. Here are our monthly accounts (in AUD):
"Current other income", which is mainly salaries, was a bit higher than usual at $14.8k. Spending (not counting mortgage) was very high at $10.9k. After deducting the mortgage payment of $5.5k (which includes
implicit interest saving due to our offset account - the actual mortgage payment was about $698 less than this) - there were three mortgage payments this month rather than the usual two - we dissaved $1.5k on the current account and added $3.5k in added housing equity. Retirement contributions were quite high at $5.1k as I got three retirement contributions this month. Net saving was, therefore, $7.1k across the board.
From next month I will stop my voluntary retirement contributions of $100 a week due to the reduction in the concessional contribution cap from $35k a year to $25k a year. My employer contributions will actually exceed the cap. As is usual in the public sector they are much higher than the 9.5% compulsory contributions. The excess will just be taxed at my marginal rate like a non-concessional contribution. I might still add some non-concessional contributions to superannuation in a few years time but don't feel like locking up more money than necessary when there is no immediate tax advantage and the rules on taxation in the retirement phase, could change at any time...
The Australian Dollar rose from USD 0.7437 to USD 0.7681. The ASX 200 rose by 0.17%, the MSCI World Index gained 0.50%, and the S&P 500 0.62%. We gained 0.38% in Australian Dollar terms and 3.68% in US Dollar terms. So, unusually we outperformed both the Australian and international markets. The best performer in dollar terms was CFS Geared Share Fund up $5.6k. Next best was Platinum Capital, gaining $3.0k across our various different holdings. The worst performer was PSSAP superannuation fund, losing $0.8k. Small cap Australian stocks was the best performing asset class in percentage terms, followed by hedge funds. All other asset classes gained apart from commodities and real estate.
As a result of all this, net worth rose AUD 9k to $1.839 million (new high) or rose USD 51k to USD 1.413 million (also a new high).
30th June is the end of the Australian financial year. Over the last 12 months we had a rate of return of 13.7% in AUD terms (17.5% in USD terms). The ASX200 gained 14.1%, while the MSCI gained 19.4% in USD terms. Net worth increased AUD 262k and we are still on track to get close to the optimistic projection for 2017. Of course, anything could happen in the next 6 months!
This month's accounts are very preliminary as they include estimates of franking (tax) credits on managed funds ($3.9k) that we won't actually know till the end of July. Here are our monthly accounts (in AUD):
From next month I will stop my voluntary retirement contributions of $100 a week due to the reduction in the concessional contribution cap from $35k a year to $25k a year. My employer contributions will actually exceed the cap. As is usual in the public sector they are much higher than the 9.5% compulsory contributions. The excess will just be taxed at my marginal rate like a non-concessional contribution. I might still add some non-concessional contributions to superannuation in a few years time but don't feel like locking up more money than necessary when there is no immediate tax advantage and the rules on taxation in the retirement phase, could change at any time...
The Australian Dollar rose from USD 0.7437 to USD 0.7681. The ASX 200 rose by 0.17%, the MSCI World Index gained 0.50%, and the S&P 500 0.62%. We gained 0.38% in Australian Dollar terms and 3.68% in US Dollar terms. So, unusually we outperformed both the Australian and international markets. The best performer in dollar terms was CFS Geared Share Fund up $5.6k. Next best was Platinum Capital, gaining $3.0k across our various different holdings. The worst performer was PSSAP superannuation fund, losing $0.8k. Small cap Australian stocks was the best performing asset class in percentage terms, followed by hedge funds. All other asset classes gained apart from commodities and real estate.
As a result of all this, net worth rose AUD 9k to $1.839 million (new high) or rose USD 51k to USD 1.413 million (also a new high).
30th June is the end of the Australian financial year. Over the last 12 months we had a rate of return of 13.7% in AUD terms (17.5% in USD terms). The ASX200 gained 14.1%, while the MSCI gained 19.4% in USD terms. Net worth increased AUD 262k and we are still on track to get close to the optimistic projection for 2017. Of course, anything could happen in the next 6 months!
Saturday, June 03, 2017
May 2017 Report
Another month flies by. Financial markets were mixed, falling in Australia and rising globally. We earned a lot of extra income this month. Here are our monthly accounts (in AUD):
"Current Other income", which is mainly salaries was very high at $29k. The main reason is that I finally got paid some back pay for the additional duties I have taken on. From now on my usual salary will be a little higher, though I really hope to get out of these duties by the end of the year as with the baby and these it is hard to get my core job functions done. We also got the first childcare subsidy payment of $1.3k which covers the months of February and March. We will get this payment quarterly. On top of that this was a three paycheck month - we are paid every two weeks here in Australia.
Spending (not counting mortgage) was moderate at $6.0k. After taking into account the mortgage payment of $3.8k (which includes implicit interest saving due to our offset account - the actual mortgage payment was about $641 less than this) - which shows up as a transfer to the housing account, we saved $19k on the current account. We made $6.9k of retirement contributions, which is very high due to the extra pay, and saved a net $1.9k in added housing equity. Net saving was, therefore, $28k across the board. I increased the carrying value of our house by $2k, following the local auction.
The Australian Dollar fell slightly from USD 0.7475 to USD 0.7437. The ASX 200 fell by 2.75%, the MSCI World Index gained 2.3%, and the S&P 500 1.41%. We gained 0.06% in Australian Dollar terms and lost 0.45% in US Dollar terms. So, we outperformed the Australian market and underperformed the international markets. The best performer in dollar terms was Oceania Capital Partners up $4.4k - this is a thinly traded and volatile stock. Next best was Platinum Capital, gaining $3.4k across our various different holdings. The worst performer was the CFS Geared Share Fund, losing $16k. Private equity was the best performing asset class, followed by hedge funds. All other asset classes gained apart from Australian shares, with large cap Australian shares the worst performer.
As a result of all this, net worth rose AUD 32k to $1.832 million (new high) or rose USD 17k to $US 1.362 million (also a new high).
Spending (not counting mortgage) was moderate at $6.0k. After taking into account the mortgage payment of $3.8k (which includes implicit interest saving due to our offset account - the actual mortgage payment was about $641 less than this) - which shows up as a transfer to the housing account, we saved $19k on the current account. We made $6.9k of retirement contributions, which is very high due to the extra pay, and saved a net $1.9k in added housing equity. Net saving was, therefore, $28k across the board. I increased the carrying value of our house by $2k, following the local auction.
The Australian Dollar fell slightly from USD 0.7475 to USD 0.7437. The ASX 200 fell by 2.75%, the MSCI World Index gained 2.3%, and the S&P 500 1.41%. We gained 0.06% in Australian Dollar terms and lost 0.45% in US Dollar terms. So, we outperformed the Australian market and underperformed the international markets. The best performer in dollar terms was Oceania Capital Partners up $4.4k - this is a thinly traded and volatile stock. Next best was Platinum Capital, gaining $3.4k across our various different holdings. The worst performer was the CFS Geared Share Fund, losing $16k. Private equity was the best performing asset class, followed by hedge funds. All other asset classes gained apart from Australian shares, with large cap Australian shares the worst performer.
As a result of all this, net worth rose AUD 32k to $1.832 million (new high) or rose USD 17k to $US 1.362 million (also a new high).
Saturday, May 27, 2017
Another Very Local Auction
The house 2 doors away from us was auctioned today. It sold for $801,000 (AUD). Initially it passed in at $785,000 after one bid at that level after the auctioneer made a bid at $780k but then there was a negotiation with the highest bidder. The house plan is identical to ours. The main difference is that it is wedged between two other houses - side windows are frosted glass, while our house has open land or the street on all but one side. We have a much better view as a result. Our backyard is a bit less deep and our front yard longer. The presentation of this house is better than the current state of our house. I reckon we might need more than $10k to bring it up to standard. The original selling price was for some reason $10k more than our house. When I add this new sale into my model of the value of our house based on sales in this development since we bought, it only increases the carrying value of our house by $2,000 to $777k. I think this is a good conservative value for our house.
Monday, May 01, 2017
April 2017 Report
Yet another positive month for the markets and us. Here are our monthly accounts (in AUD):
Spending (not counting mortgage) was high at $8.0k (after taking out some business expenses that have been refunded - "Other income" includes the refund as well as salaries). Salaries etc. added up to $13.1k (after tax). After taking into account the mortgage payment of $3.8k (which includes
implicit interest saving due to our offset account - the actual mortgage payment was about $642 less than this) - which shows up as a transfer to the housing account, we saved only $19 on the current account. We made $3.6k of retirement contributions, and saved a net $1.9k in added housing equity. Net saving was, therefore, $5.5k across the board. Still not getting the childcare subsidy.... This month we paid the apartment rent for our trip... part of which was the business expense that was refunded...
The Australian Dollar fell from USD 0.7637 to USD 0.7475. The ASX 200 gained 1.03%, the MSCI World Index gained 1.60%, and the S&P 500 1.03%. We gained 1.52% in Australian Dollar terms and lost 0.63% in US Dollar terms. So, we outperformed the Australian market and underperformed the international markets. The best performer in dollar terms was again the CFS Geared Share Fund ($7k) followed by Unisuper ($5.1k). Platinum Capital gained $4.4k after the share placement. The worst performer was Oceania Capital Partners down $3.0k. Private equity was the worst performing asset class, followed by small-cap Australian stocks. All other asset classes gained. Many investments, in particular international shares and large-cap Australian shares are at all time highs.
As a result of all this, net worth rose AUD 27k to $1.798 million (new high) but fell USD 9k to $US 1.344 million.
The Australian Dollar fell from USD 0.7637 to USD 0.7475. The ASX 200 gained 1.03%, the MSCI World Index gained 1.60%, and the S&P 500 1.03%. We gained 1.52% in Australian Dollar terms and lost 0.63% in US Dollar terms. So, we outperformed the Australian market and underperformed the international markets. The best performer in dollar terms was again the CFS Geared Share Fund ($7k) followed by Unisuper ($5.1k). Platinum Capital gained $4.4k after the share placement. The worst performer was Oceania Capital Partners down $3.0k. Private equity was the worst performing asset class, followed by small-cap Australian stocks. All other asset classes gained. Many investments, in particular international shares and large-cap Australian shares are at all time highs.
As a result of all this, net worth rose AUD 27k to $1.798 million (new high) but fell USD 9k to $US 1.344 million.
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