Net Worth Update – June 2008

Well my parental leave is done so I’ve drained my savings, my house value is down and the stock market is down. Let’s see how bad the damage is.


House $331,000
RRSP $18,300
LIRA $11,200
Pension $4200
Wife’s RRSP $8200
Wife’s Investment Account $8800
My Investment Account $4600
High Interest Savings Account $5000

Mortgage $140,600
HELOC $2750

Therefore my net worth now stands at $247,900 for the end of June 2008. That is an decrease of -$27,100 or 10% from my last update.

Obviously the house market value dropping had a huge impact on the net worth.  So to anyone who thinks equity is anything remember it is like smoke and can vanish in a moment until you sell your house.  I’m not sure if the drop in values will continue, but really I don’t care all that much.  My house is still worth a lot more than my mortgage so I don’t really care that badly until that point.

Well despite my use of our savings and the poor market performance my investment net worth only went down $1000 to $62,000 which actually surprised me.  I suspected with the poor market performance lately and our lack of savings I would be doing worse overall.  I still might need some additional money out of our savings ahead in July so this could drop a bit more but it should be on the rise again soon.

For more details see the following graphs (click to see a larger version).

5 thoughts on “Net Worth Update – June 2008”

  1. Hunting through your old net worth updates I found that you base your house value on listings of similar houses in your area minus 8%. Is this based on listing prices or actual sale prices? Where do you go to get this information?

  2. Micheal,

    It is based on listing price minus 8%. So when there is a seller’s market I’ve often undervalued my home, yet once it shifts over to a buyer’s market I’m perhaps a little high. I’ve often been told in a buyer’s market to undercut the list price by at least 10% to start the bidding process. So my 8% leaves me 5% for give on the price and 3% for closing/moving costs.

    Price data mostly comes from searches on MLS and a local site called SK Homes For Sale (a FSBO site). Between the two I search my neighbourhood and those areas that are a similar age and determine a likely listing price for my home. I look for size of the house, age, condition and any features differences between the listing and mine.

    I try to provide a fairly acturate price, but without paying to get hold of actual sales data I know I’ll always have a margin of error. Housing pricing is really subjective anyways, so I’m not overly worried about it.


    Overall the market here is just suffering a correction back down due to a large number of listings and people getting off the speculation band wagon (aka: house flippers).


  3. Thanks for the information. Any method of valuing a home has its flaws. It looks like you’ve got a reasonable method that doesn’t take too much of your time or money.

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