Looking back this past month, I was thinking what were the things that really stood out for us. Besides some steady dividend income, we’ve also paid down the deposit for our rental property and are finalizing some last steps on the total financing package, like getting our current home appraised. To add some fun to the mix, I got the opportunity to attend a blockchain masterclass, which was awesome. And I’ve booked a 5-day holiday to Lisbon, where I will go to with a friend in October. Let the money roll, right 😉 And not to forget, Divnomics had its first birthday last week!
It still amazes me sometimes how much we can do in only one month. And how often our plans keep changing while we figure out the best method to fully profit from our investments. Unfortunately, due to a very busy month related to work, investing and wedding plans, I wasn’t able to publish as much content as I wanted. The coming weeks will still be giving some turmoil, so I probably won’t be around as much online as I wish to be.
Although we bought our first rental property a while ago already, the due date won’t be until the end of November. We used this time to analyze multiple methods on using leverage in order to find out what would work best for our particular situation. Because of a talk we had with our local real estate agent, we got the insight that our current home value was higher than we had anticipated. In order to lock up this capacity, which we will use in a HELOC to fund future rental properties, we asked for an official appraisal. Turns out, our home is worth 25% more than when we bought it 3 years ago.
A small part of this will already be used for our first deal. Of which I will share the details somewhere within this coming month.
Still talking about real estate, we have also found a potential tenant who is looking for a place to live in the area of our property and he likes to check out our property. We connected through a mutual friend, and he offered to help us fix it up a bit before moving in. We have yet to meet him, but this might be very interesting. If this plays out right, we won’t have to use the services of a property manager anymore.
Dividends & Portfolio
Steady as she goes. With €37.60 as ‘passive’ dividend income, you can tell it’s a slow month. But with a pretty decent growth rate of 44.3% going up from last year. Nothing to complain, right. Starbucks and MasterCard have been a new addition to the portfolio since last year and provided the most growth. As the EUR/USD price is getting higher, we notice a direct hit in our dividend income. Dividends received from US companies are lower than usual. For example, P&G had paid us €11.62 in May but has fallen to €10.94 this past month. It’s one of the downsides tracking our dividends after taxes. but it gives us great insight into how much we are actually receiving. Since dividends will be one of the income streams we hope to cover our expenses with one day, we favor of tracking the net income over the gross income.
Since we have not been adding new holdings to our portfolio, nothing much surprising happens anymore. It does take out the thrill a bit, and we’ve hoped to regain focus on dividend investing later this year. But with the recent developments within our real estate portfolio, we won’t focus on dividend investing for anytime soon. It will still be a big part of our portfolio, and when the time comes we will be adding fresh stocks like crazy.
Over the year, our portfolio performed kind of steady as well.
I don’t see any big fluctuations in our performance. It might seem that Mr. Market doesn’t’ have any up- or downswings looking at this portfolio trend. It’s just a horizontal moving average holding the same line for over 6 months now. It’s a great tool that shows that a lot of the volatility is being flattened out over a longer period of time.
September will be an end-of-a-quarter month again. Which means more dividends! All that is coming in, will be directly transferred through to our real estate fund. Currently, we have a comfy cash position, even with our deposit being paid. It still is 2 months away until we fully own our rental property. Until then we hope to meet our (possible) future tenant, planting some seeds for future deals and from this month forward we are going to work together with a seasoned investor from our network in order to find a second RE deal. It’s going to be a busy month with also finalizing some wedding offers, attending a 3-day seminar on personal development, and the aftermath of the ‘busy’ season at work.
Steady and insightful are the best words to describe the past month. Certainly very pleased with how things are progressing. Hope you had a very steady month yourself as well!