I updated the net worth figures and portfolio positions on our Google Sheet and blog pages. The numbers are ok as an increase in our Singapore equities portfolio is offset by a decrease in our Overseas equities portfolio. I continued with my monthly Dollar-Cost Averaging (DCA) into the robo advisors portfolios and added some new positions to my US equities and crypto portfolios. Resulting in an overall rise in the value of our investment portfolio and its proportion is reaching 50% of our total assets.
It’s obvious that we are using more of our cash to invest now as its proportion has dropped to 20% of our total assets. My CPF balances had a boost due to the additional CPF contribution from my bonus whereby the cash amount was credited in Mar and the CPF amount is credited the following month in Apr. Its proportion has increased slightly to 25% of our total assets. The remaining 5% is made up of the cash value of our whole life insurance policies and is rather stable.
When the sale of our 2 bedroom apartment is completed this month in May, I expect an increase in the proportion of our cash position and CPF balances. Contributing to an overall increase in total assets and net worth due to the mortgage being paid off. The double payment of rent expense and housing loan instalment will stop after that, easing the cashflow drain so we can better manage the childcare expense that will start in the same month.
Photo by Kindel Media on Pexels.com
Anyway, I was reading a news article about how couples at various life stages and income levels are struggling to enter the current property market because it’s running hot. This has impacted their lives by delaying wedding plans, moving out to a place to live together and starting a family. A buoyant property market causes the people that can least afford it to suffer while benefiting the people that can most afford it. It’s even worse if the parents step in financially to help because their retirement funds are now directed into the children’s property purchase instead of their own enjoyment. Delays in construction works have also worsened the housing supply and demand problem causing the property prices to rise. There’s no easy solution to this as Covid-19 continues to cause manpower shortages.
It’s difficult to break this vicious cycle in the property market unless the Government steps in with cooling measures to do something about it. They need to stop the current low interest rate and loose monetary policies environment from squeezing people out of the property market or saddling them with high household debt due to taking on a large mortgage. My family is financially fortunate enough to be able to rent a big enough apartment in an area we want to live in while we find a way to navigate this tough property market. Even then, it’s sad to hear about the struggles of first-time homebuyers and I hope the situation improves for them.