Saturday, December 13, 2014

2014 Year in Review

The end of the year is approaching so I figured I would throw out a quick update on how things have been going during these busy times.

Interest Paid:
Since the student loan is paid off and all mortgage payments completed for the year, I was able to calculate total interest paid for 2014. This year $7917.57 went to the banks in the form of interest, vs. $9060.63 last year.  This represents a significant 16.82% decrease!  Its a good feeling knowing that $1143 additional dollars went into the equity of the properties rather than the banks. 

Debt Levels:
Regularly paying extra on the Victorian House 1 mortgage has brought the debt levels down this year.  The beginning of the year I had 77.52% of original debt.  12 months later, I'm now at 68.79% of original debt, resulting in a 8.73% decrease.  With all things being equal, I would be debt free in about 8 years from now with a repeat of 2014.  But all things aren't equal.  Every mortgage payment contributes more to the principle balance than the previous, thus pushing that debt-reducing snowball faster down the mountain.

Aside from rental income, dividend payments are my favorite things to look forward to every month.  2013 ended with an average $141.43 dividends received monthly.  Right now its looking like an average of $184.96 will be collected now.  This represents a 30.77% increase in monthly dividends.  Very good news here.

Rental Income:
Rental Income has remained stable this year.  There may be a slight increase in gross rents in 2014.  Thats the wonderful thing about having rental properties.  I can set how much income I'm collect every month.  How many of us can go to our day jobs and tell our bosses that we will be increasing our paychecks going forward?  Probably none of us.

Next year will be an exciting year.  The dividend portfolio will be reduced in favor of a greater cash position.  Then when the opportunity arises, a fourth rental property may be purchased with cash.