Net Worth Update: Q3


Accompanied by all the big enterprises reporting results, I can’t stay behind in reporting some numbers of course!

As the stock market has been rising lately, so did my net worth. However, there was an enormous rise in net worth. Why? This was due to 2 main factors: 1) subsidies 2) gift.

The subsidies are coming from the government linked to the apartment I bought. Long story short: this should be a little over €100,000. The gift I received came from my parents and was €75,000. Whether or not it is ethical to accept gifts, is another debate. My main rule of thumb was to not accept what I could not pay myself.

In the calculation of the mortgage, the intrest costs for the coming 20 years are already included. I leant €160,000 and the intrest costs are around €32,000 in total. I value the apartment around €320,000. There are some other costs involved linked to the mortgage, notary, administration… These are deducted as you can see above. I will still have some costs to furnish the apartment, so any frugal tips are welcome!


It’s gonna be hard to achieve impressive results in the future as my monthly cash flow will be reduced by around €800 due to the mortgage. However for every €800 I pay, €640 stays in my pocket and only €160 is paid for intrest over the years. Assuming an appreciation of housing prices in the future, this will help boost the net worth. This will hopefully offset the opportunity costs of not being able to allocate this money into the stock market.

Side notes:

– The only regulation for receiving the subsidies is to put your place of residence at the apartment for 20 years. As this does not prevent me from buying other real estate, I don’t consider it a dealbreaker.

– By stumbling upon this opportunity, this implies I already reached my Financial goals by age 25.

–> Even without the gift I crossed the €250,000 mark on my own. This means I will have to put up a new goal.

– It took me more than 2 years of searching the real estate markets to find a unique deal like this. I consider the apartment both an investment and living opportunity. Some quick calculations showed that, hypothetically, even if I would never live in the apartment and pay taxes/maintenance every year, I would still end up with a decent profit.

How are your goals developing?

9 reacties op ‘Net Worth Update: Q3

  1. mattias

    in my own net worth as regards real estate, I make a distinction between the portion that reflects the value of the land and the portion that reflects the construction. In my experience, the value of the land is much more stable and easier to track with indexes for your region. The value of the construction is a combination of the starting price (acquisition price minus the price of the land), depreciation (3% per year) and durable renovation work that increases the depreciating basis. All VAT and registration duties are “lost” – not accounted for


    • When Do You Retire?

      Thank you for the input! Interesting methods you use to calculate. The land portion is indeed a stable factor in the equation.

      However, depreciating a newly built apartment doesn’t seem really logic to me. If I look at my parents house, which is 26 years old, there have barely been costs. Therefore depreciating it would mean the value of the building would get close to zero?

      Concerning the registration duties; yes they are lost. VAT: partly in my opinion. I don’t think anyone would pay 21% VAT and not taking it into account when selling. It might not be the full amount, but a 10% rate seems pretty fair to me.


  2. financialfreedomsloth

    Fun thing now is that the net worth will go up automatically with each mortgage payment. So you are on autopilot there.

    Just make the new goal to reach 250k in investments. With 250k you should be very close to FI. And honestly, you are already coasting. Even without extra savings you should reach 250k a 300k in investments within 10 years. If you slow down to my lazy pace of only saving 500 euro a month (due to mortgage, living on your own) you should get there in 5 years max.


    • When Do You Retire?

      Thanks, and indeed! For every 800euro I pay, there’s only a fifth going to interest costs.

      250K would be a remarkable milestone in my investing career, a fun challenge 😉 I think it will heavily depend on the choice of buying a rental property or not. I would do this to optimize taxes because my current mortgage cannot be implemented into my tax form. (I got the registration rights bonus, special approach in Brussels)


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