Stock Sales for a Property Down Payment
As stated in previous posts, me and my wife are purchasing our first property. We have been looking for a home for quite some time and just a few months back we found it. From the day we walked in the place, we felt this sensation of comfort and warmth. I am not sure what that feeling was, but it was much more different than from other listings we went to. Afterwards, we knew exactly this place was it and quickly that same day we submitted an offer well below the asking price. After, a few days of waiting, the buyers counter offered us and we did the same in return. They ended up accepting our counteroffer well below the asking price, making us super excited for such a great outcome.
Once we got the property under contract, me and my wife decided that it would be our best interest not to have a huge sum of money due every month, go figure right? We greatly hate any debt and we have been living debt free for many years. So we needed to scrounge up as much money for a down payment as possible. Luckily, we have been saving our income for the last few years and living well below our means. We both enjoy the simple things in life that are mostly free and enjoyable to spend time together and with our friends. Though when we do spend money, we are much more prone to spend it on experiences than on things, and sometimes paying for good food is a must. Overall, the mindset that we have been living with has caused us to accumulate large sums of money, continue having zero debt and to build my income producing dividend growth portfolio well on the way to six figures.
The stock sales are strictly intended for downpayment on the property. It is nothing major that would deteriorate my portfolio, it is just a small cut in the pie.
Here is the breakdown of my sales:
- Sold 11 shares of KMP @ $94.37 for a total of $1,038 (Full Stake)
I decided to sell KMP here because with recent merger I would have received more KMI shares and overweighing my KMI allocation.
- Sold 10 shares of PSA @ $186.80 for a total of $1,868 (Full Stake)
This company has been on fire and so this was tough to sell. The main reason behind the sell is to minimize portfolio REIT holdings and to diversify into other sectors.
- Sold 443 shares of ARCP @ $8.2 for a total of $3,632 (Full Stake)
This is quite unfortunate what has happened with ARCP, as it has been just an amazing investment gone berserk. First came the accounting scandal, then the CEO resigning and to top that off ARCP released news in suspending the dividend until they get their sh*t straightened out. The speculation on my part was inconceivable, but you live and you learn. I am just thankful it happened sooner than later, as there are plenty of other great investing opportunities.
Total cash received from sell off- $6,538
I made the same choice to sell stocks to buy my home! I don’t regret it, but I do feel a sense of loss knowing my early retirement was set on a different course, perhaps a slower course.
Absolutely, psychologically its tough, but you have to put family before yourself.
Thanks for stopping.
ARCP was a bummer. I still hold it and am about down over 25% on it. Just waiting it out to see what happens.
Congrats on your home purchase.
Yes it was, that is all I have to say…
Bummer about ARCP. I had a large position with them too. To your point, you live and learn. I was never easy with my purchase of ARCP and should have listened to the voice in my head. As the old saying goes, fool me once shame on you, fool me twice shame on me. Best of investing luck in 2015.
Totally! Hope you have a great year yourself.
I am following the divgrowth path as many in the community but I have to tell you, from my point of view a house generates also some kind of passive income, not right now but later on you do not have to pay a landlord but you can take the money into the stock market. You just do not have to pay the rent later on. Not giving away the rent turns into immediatelly income.
That is a great point which is so true. Not many people look into future and what it means of owning your own property. I totally agree with you, since rent in that same area would be costing way more than what our mortgage costs are. In that perspective, renting would be a bigger liability on our finances, so it just makes perfect sense of owning for us at least. Not saying that it is for everyone’s case, since there are so many variables why or why not to rent versus own, but it definitely made sense for us.
We also have a plan of paying off the mortgage in 8 years. Hopefully in the future I will present this fairly simple plan to the readers.
Thanks for the comment.
Sounds like you made the right calls for your portfolio there. Freed up some capital for a down payment and did some cleaning up all at the same time. 🙂
Best of luck with the new house. Hope it works out for you guys!!!
Thanks Jason, I hope I did. Not going to make right calls all the time, but that will not stop me from making decisions. Though it was touch to sell out of PSA, especially the way it was going.
I appreciate the kind words. It will be some work updating a few things here and there, but it will be our home from now on.
Congratulations on the house. I can certainly relate to having the desire to live in a place to call home. Stability and other things come to mind.
As for the stocks, you win some you lose some, so moving on from ARCP isn’t the worse thing in the world.
Thank you. I totally agree, its tough being a renter in this market, especially when mortgage rates are on record lows. This presents a great opportunity for many and now our mortgage will be much lower than rent in that area.
As for ARCP, all I have to say is that I am done with it. Hard to invest in such a company again after leaving bad taste in your mouth and given plenty of opportunities.
Good to hear from you, hope all is well.
Sorry about ARCP — I have a similar dud in SDRL. Congratulations on your new place! Hope you enjoy living there!
It happens, can’t pick them all right. Originally buying I knew it was a risky company without the solid dividend history and so I thought it was worth the risk.
Yeah, I heard about SDRL. Quite unfortunate.
We needed our own place bad, its been long overdue.
Thanks for stopping by.