I Reached My $1,000,000!

It has happened! It happened a fair bit earlier than I was anticipating but it has been achieved! My net asset value has reached seven figures, it is now over $1,000,000!

I was not expecting to reach the milestone until August, so what happened to make it come so quickly? Well, first, I need to explain that the figures are simply on paper, in the grand scheme of things, nothing has significantly changed. Let me explain.

I track my Investment Property value using the website www.onthehouse.com.au – it provides estimations on house values based on previous sales in the area, and all sorts of fancy mathematics to come up with their results. To be honest, I do not know how accurate the results are, but they do give a range of price and I always use the low end of the range to be conservative.

Investment Property 1 – This one had the biggest change, the valuation provided on the website went from $500,000 – $550,000 up to $600,000 – $650,000. That is a pretty massive 20% jump in price valuation.

Investment Property 2 – This property only went from $430,000 (which is what I paid for it back in August last year) up to $450,000.

Overall, with both my properties, my net asset value jumped up $120,000 in just the blink of an eye.

Until I do sell these properties, the returns are only on paper though. The valuations could very well be incorrect, or there could be a downturn between now and when I do decide to sell the property. While it is nice to have the higher valuations, it really does not mean too much until the properties are sold at those prices.

It is also worth mentioning that for passive income generating assets, it is all about the return on investment for an income. This would mean the rent received by the properties. The rent received has not actually gone up by these amounts (IP 1 the rent did go up $10 per week recently, but nowhere near a 20% increase), so the money in my pocket from the properties is still the same as it was before. The only difference is now that my yield has gone down somewhat.

Anyway, this is just a short post to commemorate the milestone. I am quite proud of myself and this accomplishment, but I do know I have a long way to go on my FIRE journey, but this sort of achievement definitely does help with the motivation to keep going!

I was thinking I should do something to celebrate and thought about going out for a nice drink or something (even though I don’t really drink alcohol much, but isn’t that what people do, go out for a wine or something?). Instead, I just went to the shops and bought a block of chocolate, some blueberry muffins and watched a movie. I was pretty happy with my choice. I do have a trip to Perth coming up next month so maybe I can do some celebrating while I am over there.