Mid-MAY26 Assessment
As we approach JUN26 YE by next month, now would be a a good time to assess where we’re at, where we may finish off by JUN26, and how next year may play out. It’s mid-May this week, so let’s reflect.
We’ll start with Property. We purchased our Property for 700K in SEP20. JUN25-DEC25, we estimated our property value to be about 830K based on RE. Based on AI calculations, the annualized return is 3.65%. As of to-date, based on RE recent sells in our area and property size, we can safely estimate our property value closer to 870K, adjusting our annualized return closer to 3.84%.
There’s another high rise apartment being developed in our area and looks like it should be fully constructed by this year. Based on the property listings, 2BD is listing around the 925K-to-950K range. If they manage to sell their units within this price range, we’ll consider upping our range to 900K by DEC26, otherwise, will remain flat at 870K as the property market slows down around NOV-JAN Holidays.
We’re also noticing the suburb is getting pretty saturated, so we’re thinking about either staying put or turning this place into an investment property now that our kid got into a high school outside the zone. It would be surprising if we start seeing 2BR apartments, outsize of Sydney CBD, to be priced at 1M+. Mortgage interest rates just increased again, so the landlords would putting the pressure back to the renters. We’ve refinanced last year, and we’re pretty happy that our mortgage repayments dropped by around 20%. It’s given us some extra breathing room to put more into our cash‑savings bucket and let the cash savings do their thing, taking advantage of the tax-free MTR portion. Depending on where the market is headed, we’ll consider refinancing again once our property value goes closer toward the 925K-to-950K range.
As for our Super, we’re in the 380K-to-385K range. Using 5% growth rate, that’s about +20K, Concessional Contributions we plan to hit the max at 32.5K (per the ATO). 15% tax on concessional is about 4.87K, so net is 27.6K. 27.6K+20K=47.6K. We know the 3K Spousal Contribution is locked in, so the only real variable is how much we put into non‑concessional contributions for ESuper. That’ll depend on where the KSuper balance sits by DEC26. Next year, I’ll be 45. Without using any growth projection models, goal is for our Super Bal to be closer to 750K by the time we’re 50. Using 5% growth rate, 750Kx5%=+37.5K in MR. We can consider CoastFI by then, but considering that the SG is 12%, we’ll continue to accumulate so long as the employers are willing to pay.
