So, after going back and forth a few times, I’ve once again decided to increase the minimum contribution to my portfolio. At the time of this writing, I have committed to contributing a minimum of $500 per month. This amount of money is still far short of what it used to be, but it is a significant step up from the roughly $50-$100 that I was contributing in the past. With everything going on, the question is, why now?
Why Increase The Minimum Contribution Now?
Like many of my investment considerations, the decision was made based on a re-evaluation of my financial circumstances. As you know, I have A LOT going on right now. I still haven’t closed on the condo and construction has slowed because of COVID-19.
In fact, part of the reason why I had to reduce my contributions was because I was saving up to buy the condo. I sold my stocks to help me afford the down payment and closing costs. I can write about this more in future posts. But because of the coronavirus, the mortgage market is tightening up a lot. The bank I had secured the mortgage from pulled out. So, I’m in the process of trying to secure funding for the condo. Other banks that I am looking into have far more stringent requirements, which makes it far more expensive for the borrower (namely, myself). Crazy times we live in, indeed.
But, notwithstanding that issue, I feel I have my down payment and closing costs ready to go. So, all I’m doing now is crossing my fingers hoping that we will get to a closing date very soon. While I still add a little bit of money to my condo fund every month, I feel I can now increase the contributions to $500 to my dividend portfolio.
It also doesn’t hurt that I think the market is on sale right now.
Conclusion
So, there you have it. Not a long post. I just wanted to update you on what’s going on. There is actually a lot more to talk about but I’ll save those for future posts.
What do you think of this post? Do you think the market is on sale right now? Let me know your thoughts by commenting below.
Uuu sorry to hear you have issues with banks. On the other hand delay in construction helps you actualy and you can find new bank. Think about negotiating some discount as I asume builders are in breach of their part. All will be ok, will sound cheezy but keep calm and keep on investing 😉
I’m doing my very best not to worry about it P2035. There is a slight possibility I might be able to get out of the deal, but assuming not, I’m obligated to purchase. Price was locked in months ago, so re-negotiation is not really an issue at the moment. The issue with the banks is that this particular type of condo is not serviceable by Fannie Mae or Freddie Mac so it makes finding a lender challenging, given the current times we are in.
I suppose you should look for some fintech or so with higher margin. Even p2p platform in worst case with a 12mo bridge loan which you could refinance later. Well im pointing to the fact that other side most likely in a breach of agrement as well due to construction delay.
That won’t happen until early May, but good point.
Hi, i follow you on Twitter, my aim is also to make a supplemental income. Because i live in the poorer part of Europe even a monthly 1000- 2000€ would already be enough to quit my job and do something i really enjoy doing, which would also encompass staring at charts.
What i want to know is it even possible by investing 500 a month? This is at the absolute top end of my abilities, considering all other obligations i have and i probably wouldn’t be able to do it on a prolonged basis.
I also kinda don’t like solutions that take 20 years to materialize though.
Thank you for any answers. bb
Hey definitely good luck to you. My hope is that there is a qualified professional whom you are able to reach out to, if you choose, who can help you with your situation and give you advice on what to do. Unfortunately, I can’t do any of those things, but I wish you all the best.
Hi, thanks for the answer, even though it’s kinda disappointing as i was merely looking for a theoretical answer on how doable it is.
i wasn’t expecting ‘tips’, more like a yes or no with maybe a short explanation as to why.
Thanks again for your time nevertheless, bb
No worries. I think I was confused by the question. I read it several times, and I still don’t get it.