Wednesday, 24 September 2014

From Super Reits to Stupid Reits lol

Recently last month I took a gamble and purchased $150k worth of Reits on margin LINK

Ohhhhhhh how it has not been going to plan so far.

$152,669 has plummeted down to $146,045
That is a $6,624 loss so far or 4.3%. Wow that is a big drop for a time period of only 28 days in the so called safe investment of real estate.

Also I have paid $229 in interest for my (3%) margin account to borrow the money to invest.

On the bright side I have received $914 in dividends so far from just this play as they are all monthly payers but whats the point really to earn 7.5% in dividends a year when your investment goes down 10% lol.

In Conclusion

So far it has been a bad investment but I am not worried about it just yet. It is early as its only been a month. I will give it a close watch to see how things shape up in the coming months and continue to pay down my margin debt from dividends received. I will make periodic updates on just the REIT play to keep you people informed.

In a splurge purchase I have purchased a new phone which will not be here till mid next month. It is a lot of money for a phone. Sure I could get one subsidized from my carrier but I really dislike contracts as my last provider really took me to the cleaners as I tried to switch. I dont spend much on myself and its an item I use very often. Plus my last iphone 5 lasted me over 2 years now which is the longest I have ever had a phone without upgrading. I am hoping for this new phone to last another 2 years thus the apple care warranty. I am firmly against extended warranties but I feel justified with this one as phones are very accident prone and I will be running this one without a case so it can fit in my pocket still lol. This is the second most expensive phone I have ever owned. WHATTTT u say???? Yes In 1996 I spend over $1600 on a Motorola StarTAC. LOL How far have we come. The StarTac was the leap into the future at the time before texting was a thing and 50 cents a minute was the going rate for a phone plan.

Other News

I have been playing with about 100k in my US margin account. I have been selling Apple puts for a few dollars below market price and the 300 shares of Apple I do have I have been selling covered Calls for a few dollar above. Overall I am bullish on Apple and have been playing the stock to take advantage of it.

I still hold 600 shares in my retirement account I am not touching or playing options with. My max 100k play is to see what kind of money I can make options trading writing aggressive options.

In my coming posts in a few days I will give a Grandma Olga ETF update LINK
Also a project debt Ali update LINK

So how have your guys plays , buy,sells and options been? Also what is the most you have spent on a phone and what has been your favorite. I think my old time favorite was my Motorola black MicroTac elite phone. Was great with slim detachable batteries and looked very classy at the time.

Sunday, 14 September 2014

$2,139,484 Net Worth Update September 2014


My Net Worth Update September 2014

     September 14 / 2014  : Updated every mid month


Home 2014 assessed value                                  total                 $1,190,000

-Equity Investments
Tax free saving account TFSA -                 $33,601
Retirement saving plan RSP -                  $108,173
Canadian margin account -                      $302,693
US margin account ( Ex Rate 1.1076)-    $160,309
margin available $167,215
                                             Total equity    $472,839
                                                                               total:                 $642,800

-Rental Property
Warehouse Income Property 2014 assessed value
                                                                               total:                 $384,000
-Start Up Company
Brewery start up share value
                                                                               total:                   $85,000

Checking account                                        $558
Business account                                       $7,087
                                                                               total:                    $7,645

                                                                        Assets total :          $2,309,445

US margin account     $19,732
(margin rate 3.75%) 
CDN margin account $149,187 
(margin rate 3.00%)
                                                                           Liabilities total :        $169,961
                 August 2014 Grand Total Net Worth:      $2,139,484 

                                     Gain/loss from last month + $13,390

August 2014: $2,126,094 Details Link + $14,613
July    2014  : $2,111,481 Details Link  + $5,584
June    2014 : $2,105,897 Details Link   + $3,165
May    2014 : $2,102,732 Details Link

  Investment Yields
- Start Up Brewery : No expected return for a year

-Warehouse commercial property Income 
 $1,912 a month minus $678 expenses ( maintenance,tax) =  Per month: $1,234                                                      Yield on assessed value:  3.85%                Total year profits :$14,808

                                                              Forward Monthly dividends Avg:  $1,264
                                                              Total Forwards dividends yearly $15,599

    Grand Total Passive Forward Yearly Income :    $30,407
  (This passive total is a bit out of date but will get around to updating it soon)
                  Per month average total     :          $2,533

 In Summary-

Another 10k plus month. I am overall pretty happy with it. I will take 10k gains anytime I can. Primarily the gains were all market gains in equities. I had some good run of Apple stock recently and I have hopped in and out of it a couple times this past month. I have been buying the dips and reselling it higher. I plan to continue with this for a little while especially with blockbuster Iphone 6 numbers coming. I have rewarded myself by preordering an Iphone 6 plus 128gb in space grey. Time to sell off my 2 year old perfectly functioning Iphone 5. I dont have much indulgences and a couple gadgets here and there is all I need.

My 150k Reit gamble is not paying off so far. I am down a couple of percent on them so far. I did however sneak in a day before ex-div date so a .625% was expected but not 2%+. I will give more specifics in a later post. All my new trades and movement has made things hard to track and separate. In a coming post I will detail what I have going on. Passive income gets a few more steps to calculate when some trades are short term and adding interest per month from margin debt.

The Canadian dollar continues to fall which boosts my Canadian net worth total for which I can not complain. Sorry I have not been too active of the blog of late because I got quite a few things going on. I am working on some real estate deals, I am helping even more around the house especially with my oldest starting junior kindergarten as I often am looking after my 2 year old boy. Also My dad is having some medical problems and had to make a few hospital visits. Busy busy what better busy than nothing going on at all. In a few days I will have an update to my holdings and strategy.

How is your guys August and Sept shaping up??

Good Day and Grind On!