Nearly End of month stats.
Its 1.30 am and i could not sleep , so I've sneaked down without waking my wife to write this.
Contents:
1- Stock stats and current holdings
2- The house sale update
3- unit rental
4- The economy
5- How i think things are going.
1- The Stock portfolio Stats
Total Month Dividends £15.78
Total Month passive income £889.84 :) Biggest ever so far.
March Contribution £650
Total Contribution £3500.20
Stock market value £3335.04
Portfolio dividend 7.3%
PE 9.8
Current stock holdings -
New one added is SSE. I don't hold any utilities so i thought i better get some. I looked at many markets both here in the UK and the rest of the world. SSE is UK based and ticked all the boxes for me, so i bought.
The second one i bought is City of London Investment group. This ticked the box of Diversified Financials and is now 20.5% of my portfolio.
2- The house sale
Its still dragging on and doing bits of paper work here and there. My current tenant has been paying weekly. But as i've not received the money in advance it has made running the passive income account a little harder as it's being paid in arrears. Next month as part of the deal they are having it rent free, so im hoping the house will be left in a good condition.
I'm currently waiting on a gas certificate for the new buyers. I have thought what happens if the new buyers pull out. Its ok, my current passive income can cover the shortfall but it means i will have nothing to reinvest.
From the house sale the plan still stands to use 30K to buy another property £10k into stocks. Though after speaking to my mortgage adviser i might even spend 40K and get two properties. It sounds crazy for little amount of money but the sums do add up. If it worked my passive will really will increase immensely and provide even greater monthly contributions. This might make better sense. The last 10K on a few bills i want to clear and a new car. Our current car has served its purpose with our children growing up , but now its starting to drink water which is not a good sign.
If the buyers pull out im going to raise the price of the house as i'm in no rush and i believe it would still sell.
3- Unit rental
I do have a small unit that i rent out to a friend for £100 month. He'd fallen on hard times back at the end of last year and said he cannot afford the rent for a while. Well great news as he owed me £300 coming the 1st march and hes has just deposited into my account £150. So its coming in (though in 4 days he'll owe another £100 making it £250 in total) which is a good start and better than nothing. It was deeply needed to be honest as I've got the property rental situation giving me a short fall.
4- The Economy
Things are changing and its going to effect the way I'm entering the stock market. Everything seems to be booming, so much so we have reasonable inflation and interest rates are going up. These are my thoughts : Oil is rapidly going up (sign of a economy overheating), Governments are raising rates but really need to get them at around 5% desperately.Everyone is in work. People still carry a ton of debt and raising rates is really going to hurt .
Houses are on the market for short periods before selling. I'm just getting very uncomfortable the way things 'feel', its as if we are on the verge of hard and fast mini boom or on the verge of a recession.
Are you currently saying to yourself when you fill your car "its getting expensive!"
So where's the bubble? I honestly don't know. It could be a stock market bubble from excessive QE printing. It could be caused by Trump creating a trade tariff war. I'm leaning towards the QE problem.
5- How I think things are going
Its very early to tell but im happy the way things are and very comfortable.If a recession does come it won't make much odds to me as my stock account is still small. I'm just going to keep buying and keep adding come rain or shine.
Housing wise things are looking excellent. My tenant has left (the house is empty) and i'm just waiting for them to hand me the keys and pay the last £100 they owe. Hopefully that will be today as today is the last day of the month.
My mortgage advisor
I have tried loads and loads of times to do mortgages myself but if one thing that i cannot emphasis how important it is its to get a mortgage advisor. Late last year i needed to get a 80K mortgage. Its nothing as i already have one but wanted to renew it for a better deal. So there's me thinking i can do this myself. I hopped along to my local bank and we had a meeting. Cut the story long and short i pay little tax because i reinvest my money, this of course reflects that i earn very little.Even though i ,already have the money borrowed, never missed any payment, excellent credit score, loads and loads of collateral and yes you've guessed it. I got turned down. I did this twice. So after my failure i phoned my mortgage advisor (thinking i could have beaten him). He sorts me out an even better mortgage than i was chasing, he did all the paper work and....... Bingo i pay him £300 and i have my new mortgage. I best say that again. You must have a good mortgage advisor.
In preparation in interest rates going up and caution i have remortgaged all my properties (that have mortgages) to 5 year fixed rates. Funnily enough they all became cheaper than what im currently paying.
Oh and here's the good news. I tell my mortgage advisor I'm going to reinvest the money back into property from the sale. I ask is 30K going to be enough. He explains for rental my target window is 150K. Wow, so now Im thinking the 10k i was going to use on stocks to also use on property and then reinvest the rental into stocks. This could give me two properties with total mortgages of £250 and rental income of £780 a month. That's a profit of £530 a month!! Thats an increase of my passive income of £400 a month, just by selling a house reinvesting and having 10K left over. (to keep my wife happy).
The exchange date for the house is the 1st May so i will get zero income from that property for April. Now if the buyers pull out i'm not too worried as i can afford the temporary loss. But what i am going to do is actually raise the sale price by 5K. I know it sounds crazy right , but i believe it would still sell and i can make more money.
Passive income is the most exciting thing ever!
