Where Will Our Net Worth be in 2008?

Assuming house prices stay flat for the remainder of the year, and simply focusing on mortgage paydown I took a sneak peak into our 2008 Net Worth using a mortgage calculator.

It would be interesting IF house prices stay flat as this would defy the blogisphere which is obsessed with our global housing "Bubble". It would also defy the professionals such as CREA who are calling for 6.9% property appreciation on a National level. Who to believe? Don't care. All I know is that we've selected some Prime real estate and the mortgages will be going down and we are holding LONG-TERM, through the cyclical ups & downs.

Anyways here goes:

Property Eight will be reduced from $383,500 to $379,973.11 in January 3rd 2008 = contribution to Net Worth of $3,526.89
Property Seven will be reduced from $140,400 to $139,880.75 in January 2008 = contribution to Net Worth of $519.25
Property Six will be reduced from $128,000 to $126,863.44 in January 2008 = contribution to Net Worth of $1,136.56
Property Three will be reduced from $89,717 to $88,928.94 in January 2008 = contribution to Net Worth of $788.06

We will be converting some of Properties ONE, TWO and FIVE into very small cashback mortgages in which the cashback will improve our Net Worth by $10,000 (approximate I rounded this off). The drawback to this of course is that the interest rate goes higher.

Three of our unsecured loans will be eliminated entirely. That produces $8,035.70 that goes right to our Net Worth.

Adding up all the above greenery totals $24,006.46 and adding that to our current Net Worth of $504,905.30 will make our January 2008 Net Worth $528,911.76. A 4.75% gain in Net Worth in just mortgage paydown alone.

Again, this does not include any appreciation whatsoever. Will revisit this in January and see where we are in actual comparison. I did this post as a reminder that mortgage paydown adds to the bottom line Net Worth as I often focus so much on the capital appreciation of investments.