Monthly Portfolio Update – September 2017

monthly-update-september-2017

Yet again the month has come to an end. In the last update, I was pleased with the enormous progress we’ve made in such little time. Well, apparently we have surpassed our expectations again. Not only did we move a little closer to us owning our first rental property. We stepped up the game even more and actually bought a second rental property in the last few weeks!

Our dividends keep on flowing in, not much has changed there. Although our portfolio took a dive when we decided to sell 2 holdings in favor of our real estate ventures.

But the best thing and one that has the biggest impact of all, was me getting a new job!

I’m stoked about getting started with a new company in just over a months time. In the former blog post, I stated that we had to buy a ‘new’ car in order to fulfill my daily commute with a car that actually works. Well, as of two days ago we are the proud owners of our very own racing monster! Well, better call it a decent, small and very frugal car to drive around in. She has cost us 3100 euro, which otherwise would have been used for my very own motorcycle. That dream has to wait for later days.

In the past weeks, there is another turn in events, as our very own parliament has been made an agreement after more than 200 days after the election took place. And in which a couple of new proposals addressing our taxes on income, dividend, and wealth. I have followed a few the changes they plan to make, and the counter initiatives that took form. If you want to read a bit more on how these plans can affect you financially, Meneer & Mevrouw, Mr. FOB, and Lekker Leven met Minder have touched the topic in more detail (all in Dutch).

The possibility of future tax reforms will not stop us on our journey. And the coming months will bring even more excitement as we have not only one, but two rental properties that will pass on to us in ownership!

Real Estate Update

You have read that right. We couldn’t really wait until the end of November when we receive the keys of our first property. In the meantime, we bought a second one, which will pass on to us on or around the 30th of October. We got wind of a deal and took it on as soon as we found out about the possible return on it. The mortgage already has been applied to. And as of yesterday, we got the green light we hoped to hear. Additionally, we will make use of a private loan to supplement the deal even further, which – again – has already been arranged. The rest is funded.

I had hoped to get into more details about our first property by now. But as long as we have to wait until we truly own it, some of the details can yet change. You’ll have to wait a little longer to read the full report. But in return, I’m giving you all 2 reports to read, instead of 1. How about that!

Portfolio & Dividend Update

In the last month, we freed up some money by selling stocks of 2 companies. Namely BESI and Marathon, giving us 8116.54 euro in return. We have gone back and forth about which stocks to sell, for there are many reasons to do so. In the end, we sold both for entirely different reasons. BESI was our best performing stock, on which we had been averaging down a couple of times in the past. Our cost basis, because of it, was only €2461.97, and we managed to sell it for €6982.44. It was a no-brainer since we had no other use for the capital appreciation while the stock was still remaining in our portfolio. And so, we sold it.

Marathon was representing a very small piece of our portfolio, wasn’t performing like expected for a while now and lays in a sector we don’t want too much of (energy). We did snatch up the last dividend payment this month, right before we sold it. All in all, we made a small profit on capital gain, rewarding us with a profit of 158 euro.

Stock Portfolio

Our total portfolio worth has come down to €39157.93 euro, as of the first of October. Still +17% up from last year in the same month.

Although we haven’t bought any new stocks since February of this year, the dividends are continuing being paid out to us. As an end to a quarter, September is always a big one in the form of dividend paychecks. There wasn’t much change though since last quarters end update.

Dividens-september-2017.png

Both Unilever and Allergan are new addition compared to last year, although both haven’t been our first dividend this year. In total we received a tidy sum of €155.13 in September, representing a +19% growth compared to last year. As our growth rate dwindles every month a set up this report, I’m very pleased with how it turned out. The extra money is hardly needed to fund our future investments so we can let the magic of compounding happen.

monthly dividend update

There are yet a few months to come this year. We are under no illusion that we are going back to dividend investing this year. With this second deal in our pocket, we keep delaying buying new stocks until we get income from both the properties. We will see what happens then!

Coming up

Our first property will be handed over to us at the end of the month. But before that happens, I will spend a few days in sunny Lisboa with a friend of mine. Really looking forward to it, and I will get some time out before I have to leave the current office for good.

In the months thereafter I will have my last day on the current job just one day before there is a new BE/NL FIRE Meet-up in Eindhoven! Can’t wait to see some of you again and be talking the whole day about money and sharing stories.

Let’s make the best of the months yet to come!

 

9 thoughts on “Monthly Portfolio Update – September 2017

  1. I really love these updates 🙂 Great to see that you actually bought a a second property, I’m really curious to see how that works out. The dividend looks great as well! I just got another €1.22, so not enough for retiring, but at least it’s more than last year, when I wasn’t investing at all 🙂

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    • Thanks, that’s great to here. I’m working on a more detailed post about the first one right now!

      And awesome to hear your dividend is coming in. As long as it’s growing, it’s going in the right direction 🙂

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  2. Amazing news on all fronts! I can’t imagine how you managed to squeeze in another rental property in such a short time. I am sure that it will start paying off very shortly.
    If it’s not a secret, will the rental income cover your mortgage payments? Are you going to calculate how much of your loans passive income will cover? It would be really nice to follow that 🙂
    Congrats again!
    -BI

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    • Thanks, BI! It took us slightly by surprise as well. But with some fast decisions, the deal was done in a matter of weeks.

      For both the rental properties, the rental income will cover the mortgage payments. Working on a post to get into more detail about the number, loans and rental (passive) income should be covered in there as well.

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  3. Thanks for sharing. I know what you mean about the energy stocks. My portfolio is pretty heavily allocated toward them now. I ended up selling off one of my oil stocks at the peak when they all jumped up double digits and took the gain. Put it into something else for diversification purposes that hopefully preforms better. We will see.

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