Networth

Networth Update – 08/2020 (August)

Welcome to the August Networth update! Networth increase of 1.5k with 2 weeks of vacation 🙂

I’ve been waiting a bit this month hoping i could announce the ownership of the house we signalled but its taking more time than we wanted. Anyhow i could also tell you about what we have been doing in August in the meantime!

We took 2 weeks off in August spending 1 week in an amazing 5* hotel in the east of Portugal next to the Spanish border and another week 1h north of Lisbon next to the beach.

We decided to take advantage of a 50% discount in the Hotel and visited several towns in a close range (~40km) and also did a full day in the Montargil lake with some fishing included. Pretty awesome.

COVID-19: Câmara de Marvão anuncia primeiro caso confirmado no concelho -  Rádio Campanário
We passed here on the first week (Marvão) – check it out

On the second week we wanted to keep the expediture on the low side so we decided to stay North of Lisbon in a small apartment Mrs. Firecracker family owns next to the beach. We have mostly cooked instead of eating out since we have a small space for grilling and also splurged in a few things like a 2h horse ride in “Serra da Archeira”.

Área Protegida
Wind Farms in Serra da Archeira

Overall our vacations came to 2.1k which were a very nice value for 2 weeks. We will be taking 2 weeks again this month and staying in the same place. All the money we can save for support the reconstruction of the house.

Status on the House

On the hourse front a lot happened. The bank we were working requested for a signed document from us and the constructor saying they would deliver the 110k construction. Problem with this is that the budget we provided was an estimation and the constructor didnt want to commit to this values and deliverables. We were then presented with 3 options:

a) Change construction company

b) Only do the buying without the construction part

c) Try another bank

Options a) and c) seemed to far fetched for us. They would require a lot of time and we wanted to sign the contract in the second week of September. We were also not very positive that another construction company would commit without doing several visits to the house and that another bank would be able to lend us the money without this formal commitments. We wondered everything. How in the hell can anyone do a house credit with construction if the process is so freaking hard??

We definitly felt we were out of our league and prepared to go for option b) and leave the construction part to a later stage. We didnt want to forfeit the 35.5k we have already given as a signal. But this would also create problems in the long run. We had to be able to finance the construction anyhow.

But…sometimes you strike luck. A contact i had been pushing aside that negotiates credits with banks showed confidence he could help us. Since we have a strong track record in many banks and a solid income i’d never considered to be in this situation..

Thankfully thanks to this contact we were able to get the credit fastly pre-approved, got another budget for the construction (194k with VAT), did the evaluation for this other bank and got approved 174.9k for construction releasing 45k on the signature. Option c) turned out to be viable! As i’m writting this we are waiting to be contacted to schedule the notary and the ownership agreement.

August Summary:

1) Portfolio swings, now up, another month down..

2) Saved 27% of our income (1073.54€ / 3890.25€). Since we budget for vacations we can continue to save up despite of the value spent in vacations.

3) Projects. Currently with 2 side projects but with very little news since my last post.

Project A – Consulting project for a major telecom player. Progress: It was decided to move forward with a showroom project which we will be billing (me and my partner) 2k for this.

Project B – I’m doing IT consultancy for a digital agency and we are still waiting for the furniture company to sign the official start of the project.

4) P2P world.

45.1) Wisefund – Nothing new. Some comms from Wisefund but no interest or principal returned yet.

4.2) Mintos – Nothing new…some people claim that interest is being paid but unfortunetly i have a lot still on hold in Monego and nothing got paid..

4.3) Monethera – still same. Nothing new.

5) New House: Adjusting the math with the significant increase on the needed repairs. (110k -> 174.9k)

Projected income:

  • Attic – 500 €
  • Ground floor (2xbed) – 800 €
  • Basement left – 600 € (larger area)
  • Basement right – 600 € (larger area)
  • Sub-basement right – 700 € (has a private part of the garden)

Total: 3 200 € (Gross)

The costs we will have are:

  • Mortgage -1000.06 € (all costs included)
  • Anual tax – 12.5 € (150 / 12)
  • Rent income tax – 896 € (3.200 x 28%)

Total: 1 291.44 € (instead of the former 1 425.7 € )

We still have some factors that might influence this like apartment occupancy (good rule of thumb is 80% calculation) and emergency nest for repairs. Even in this case we will have 5 years warranty on the construction.

We will also hire an architect which will oversee the construction, help to choose the best materials, maximize potential and plan for selling one (or more) of the fractions if we want to.

Now, coming to our monthly networth…

Summary:

Our Networth value for April is 411 933.62€ (+1 556.86)

Assets:

Investment accounts

  • ETFs Portfolio: 28 586.98 € (+709.17)
  • Retirement Accounts (aka PPR): 15 461.69 € (+808.76)
  • Certificates Deposit + Emergency Fund: 105 897.08 € ( 311.09
  • P2P Portfolio: 7 546.99 € (+ 1.85)
  • Total Investment accounts: 157 492.74 € ( +1 208.69)

Real Estate (Based on Market Values)

  • Primary Residency: 300 000 €
  • Farms: 70 000 €
  • Rental investment: 35.500 (signal given for the preliminary contract)
  • Total Real Estate: 405 500€

Cars

  • Mr.Firecracker Car: 20 000 €
  • Mrs.Firecracker Car: 18 000 €
  • Scooter: 1 500 €
  • Total Cars: 39 500€ (=)

Total Assets: 602 492.74 € (+1 208.69)

Liabilities:

  • Primary Residency: 190 559.12 € (-348.17)

Our Networth drilldown looks like this:

You can follow our Networth status always here

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