Welcome, and thank you for joining me for the 150th month as we progress from $0 to retirement. I hope you enjoy this update, focusing on moving into our new place with some… unexpected surprises!
Total Net Wealth = $958,000
July was … intense. Our settlement for our first home was on the 6th of July and so this month was all about settling into the house, discovering all the broken things that need fixing and planning for renovations.
We also had a surprise expense when we started to take down our ceiling downstairs to start some renovations, and found.. asbestos! We had to stop all work and seal up the room and start making calls. We got a specialist removal team to come and remove it for us at nearly $3,000 later 🙁 Our hot water system is leaking at the moment as well so we’ll look at getting that fixed up soon. We have money in our offset for such things, but we want to try and plan out our renovations so we aren’t limiting ourselves in the future, so we should be able to make do for the time being while we get all that sorted 🙂
That being said, the feeling of owning your first home is something quite special, and I’m absolutely in love with it. Living in a tiny 2 bedroom apartment for the last 5-6 years to save and invest really feels like it paid off.
- Made $3k from hobbies
- Paid $26k in fees and taxes for our first home buy, ouch…
- Paid nearly $2.5k to remove asbestos in the house, surprise expense!
- Included $50k in cash within our offset to our net wealth.
- Up nearly 40% since 12 months ago.
- We got $2k in dividends, straight to the offset account for you!
- Our first mortgage repayments came out… and nearly the entire amount was just for interest, so that’s going to take some getting used to.
Guess what? Buying a house is really….expense! Not just the cost of the house, but all the taxes and fees, holy moly!
All up we paid about $25,715 in fees and taxes, which is just insane. It’s our very first home but because the market is so expensive the house was above the threshold for the first home buyer grant, oh well (Seriously, where exactly in Brisbane can you place a place for under $550k??)
Expenses associated with buying a home:
- Annual Fee for ING offset account $299.00
- Mortgage De-registration $197.00
- Mortgage Registration $197.00
- Mortgage Transfer fee $2,454.00
- Mortgage Settlement Fees $299.00
- Stamp Duty Tax $21,008.83
- Conveyancing $1,200.00
We’re also discovering all the other expenses of owning a house, such as water, rates, insurances and bits and pieces, so I imagine the next 12 months might be pretty expensive! We’re so close to hitting a million so let’s see how things pan out 🙂 We’ll get there one day!
Ah data.. I’ve been so busy with the house that I haven’t finished updating all the figures, and I’m trying really hard to create a sankey diagram within the Dashboard and not use an external website. I’ve stopped paying for Sharesight and so I’m downloading every single dividend statement and buy/sell and popping all the details into a spreadsheet so I have an accurate historic record of all our shares.
Pro Tip: When you buy / sell shares, and receive dividend, I highly recommend download the digital statements you can access and saving them. Mine are a bit of a mess and it’s taking awhile to go back and sort it all out, so keep records of everything when you start off and you’ll thank your future self 😛
Oh that reminds me… I’ve had similar conversations this month to people about ‘Being really afraid to invest because they don’t want to lose money’, and I just wanted to say that if this is you, don’t put so much pressure on yourself 🙂 Start off small and when you buy your first share, expect to lose 100% of it. What you pay is a LEARNING expense. Just buy a single share, learn how to place a trade, what a CHESS broker is, get your account setup etc and buy a share and just see how it all works, it’s not as scary as you think, so enjoy the ride.
Anyway, back to data talk!
We have a major change to the way we calculate our net wealth so in all transparency … We had a travel fund and a few other accounts we never used to include as they weren’t specifically for ‘investments’, however now we have a mortgage everything is in our offset account, and since it’s a decent chunk of cash we’ve decided to include it as ‘Cash’ in our net wealth update.
This should reflect a much more accurate way of living, as every little expense will impact our net wealth, as opposed to it all happening off to the side in other account we never tracked.
For example, when we spent $30k on our new car around 2 years ago, our net wealth SHOULD have gone down that month from such a huge expense, but since we took the cash from our travel fund (Thanks for that COVID) then it was never included, which doesn’t really reflect our everyday reality, so changing things up to make it a lot more transparent and accurate 🙂
Sometimes your net wealth doesn’t increase EVERY month, and that’s the reality of it, expenses pop up and that can knock us back a few steps, but that’s ok…
Hopefully moving forward this is much better to reflect our net wealth
A close up of income and expense
I’ve done lots of re-arrange of data since May, and as a I mentioned in last months blog update, our income is including pretty much every stream of income.
This months total income was $21k.
- $3400 from Hobbies
- $1500 from Employer Super
- $13,400 of Employer Salary
- $2000 from Dividends
Our expenses were pretty blown out this month so nothing compares to the $28,000 worth of expense to buy our first home. Our second biggest expense was Tax (urgh) followed by our mortgage repayments and then everything else is so tiny it doesn’t make the chart haha. Next month it might look abit better 🙂
Honestly my brain is pretty fired this month. I can’t believe we’ve been in our new house for nearly a month and the sheer amount of stuff we’ve done. Hopefully when we get into a good rhythm I can pay some more attention to MoneyPlant. That being said, it’s a passion project and as much as I LOVE meeting new people and writing, mental health is really important so balance is key 🙂
As always, start small, but when you start, don’t stop 🙂