Recent Buy – KL

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A quick update on a a recent purchase in my portfolio.

Hard to ignore some crazy cheap valuations in the precious metals mining sector. Last week, I nibbled a bit and added more to my already largest position in portfolio. I added 100 shares of Kirkland Lake Gold (KL.TO) @ CAD$23.00. I have been buying KL (and its pre-merger Newmarket Gold) for a while now. The company has been one of the best performing stocks in TSX (and my portfolio) and executing even better than expected. Management continues to make fantastic progress with their revenue and earnings quarter after quarter, started issuing dividends last year (and has tripled them since!), news flow has been stellar every few months where higher/better/richer resources discovered in their existing mines. It’s hard to find a fault with this company.

Lately, the company has come under selling pressure and was a head scratcher for everyone. Finally, it was revealed last week that Van Eck (the ETF company) was dropping KL from its junior index (GDXJ) and promoting it to the senior index (GDX). GDXJ’s top holding was KL and this explained why there was so much selling over the past few weeks. It was also announced that Sep 21 would be the final day of selling out from GDXJ. When the market provides you fat pitches, you have to swing! I decided to wait until this window was closing and added to my position on the last day of selling. It has also been noted that insiders have started buying below CAD$25.00, so I think it provides good valuation at the current price. Current yield is close to 0.5% and with this purchase, I add $12 to my forward dividend income.

Full Disclosure: Long KL.TO. Our full list of holdings is available here.

Nifty Ways on to the Property Ladder

The following is a 3rd party contribution

With banks more reluctant than ever to lend and housing shortages across the length and breadth of the UK, times have never been harder for first time buyers.  While fingers are still being pointed at who is to blame for this housing crisis, there are in fact ways out there to get on the property ladder even on a modest income. By simply reviewing your options and researching what’s available to you, a whole range of properties and locations become far more feasible from Houses for sale in Dover to Properties in London.

Shared Ownership

This fairly new scheme allows you to part buy and part rent your home while benefiting from a reduced deposit and more manageable mortgage. With Shared ownership you can own up to 75% of the home initially and rent the remaining portion from a housing association. Housing associations are not profit meaning you will receive far less rent costs compared to private landlords.

In addition, you will only have to pay a deposit on the percentage of the home you are buying, therefor for 50% of a house marked at £200,000 a deposit of £10,000 will be required compared to the £20,000 needed without the scheme. These homes span across the whole of the UK from houses for Sale in Lewisham to Liverpool, from quaint countryside dwellings to central city apartments, these new builds ensure you receive top quality for an affordable price in the area that is right for you.

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Recent Buy – FNV

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A quick update on a a recent purchase in my portfolio.

The recent strength in US$ has sent commodities and precious metals plunging, and with it all gold focused equities have taken a beating. This provided an ample opportunity to add to one of my core positions in probably the best company in the space. I added 50 shares of Franco Nevada (FNV.TO) @ CAD$79.90. FNV is a streaming and royalty company, with lucrative deals in the gold, silver and oil&gas space. The deal structure is so good, that Franco has to literally do nothing for the next 30 years and will have increasing revenue and will be able to pay a rising dividend to shareholders. Now that is a sleep-well-at-night kind of stock. Franco Nevada is also a dividend grower, having raised dividends for 10 consecutive years. Current yield is close to 1.5% and with this purchase, I add US$48 to my forward dividend income.

I also hold Franco Nevada for my daughter’s Nest Egg portion of portfolio. I will earmark 15 shares from this purchase for her. See further details on her portfolio here.

Full Disclosure: Long FNV.TO. Our full list of holdings is available here.

5 Common Mistakes by First-Time Homebuyers and How to Avoid Them

The following is a guest post by Sean Cooper, bestselling author of the book, Burn Your Mortgage. Sean is also a mortgage broker at mortgagepal.ca.

When I bought my home six years ago, I found it both exciting and fun. If you buy a new property, as long as you have the budget, you can often customize it to your heart’s content. If you buy a resale property like me, you can choose to buy in a neighbourhood with everything that you’re looking for (provided it’s in your budget).

While I found house hunting a lot of fun, there were some costly mistakes I could have made along the way. I’m not perfect. I made some mistakes, but luckily nothing too big. (That’s why I wrote a book so other homebuyers wouldn’t repeat some of these bigger pitfalls I came across.)

Without further ado, here are five common mistakes by first-time homebuyers and how to avoid them.

Mistake #1: Not Getting Preapproved for a Mortgage

Before going house hunting, make sure you’re preapproved for a mortgage. Without a mortgage preapproval in hand, you won’t have any clue about how much you can spend on a property. You could spend $600K on a home, only to find out a lender will only approve you to spend $550K, leaving you scrambling to make up the shortfall. Don’t let this happen to you.

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Passive Income Update – Aug 2018

Welcome to our monthly passive income update for August 2018. This is part of the scorecard series where we track our dividends and other sources of passive income. We also include changes and updates related to our investments during the month – showing the overall progress.

Passive Income  Update

Passive income for the month of August 2018 was C$558.23. The passive income for the month comprised of US$131.94 and C$385.39 (exchange rate is US$1 = C$1.31).

The change for the month is -19.67% QoQ and -32.02% YoY for the month. This brings our passive income to $6,096.09 YTD and achieves 55.4% of our annual goal of earning $11K.

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