Dear friends,
In 1859 Charles Dickens wrote the famous book “A Tale of Two Cities”, which would become one of the best-selling novels of all time and will be produced in several film and theatre adaptations. It’s a historical novel that is set in late 18th century London and Paris, just before and during the French Revolution. The story follows Doctor Manette who is imprisoned in the Bastille in Paris and his move to London following his release. The novel explores the conditions before the French Revolution and the horrors unleashed during the Reign of Terror of 1793-1794. But what does this have to do with Real Estate? What’s the connection with London and Paris, isn’t Artemis based in Barcelona?
As with Doctor Manette who saw from first hand the onset of the French Revolution, Artemis Assets is witnessing the beginning of the Savings Revolution. In this version, savings are trapped and want to escape and be productive. We can show you how to liberate your savings and employ them in the most efficient and safe manner. How will we do that? Let’s start with the example in hand, a Tale of Two Cities. We will use the Tale of Paris and Barcelona, two cities within the Eurozone, with some commonalities and major differences. The biggest one in this example? Returns, returns, returns. Let’s see why.
Let’s imagine our friend Francoise who lives in Paris. She is in her 30s, renting, with a good job, and some savings on the side. She wants to buy a 2-bedroom flat to live in but also as a long-term investment. She will have to pay €810K plus €70K expenses, which means that with an 80% LTV she will need €270K of cash. She would have a monthly mortgage payment of €2.9K. If she just wanted to keep renting, the same flat would cost her €2.4K per month.
But Francoise has heard from a friend that Artemis Assets can do better than that in Spain. So she decides to keep renting in Paris and uses her €270K cash to buy a 3-bedroom flat in Barcelona for €700K at 70% LTV. The rental income she receives from that flat is €4.1K. That allow us her to pay her rent in Paris, to set aside more than €1K savings monthly to buy one more property in just a few years, and start building passive income for her personal plans and retirement. All this without taking any extra risks.
We hope that this example will make you think about your personal circumstances and whether your savings are trapped in your Bastille bank. Reach out to Artemis if you are in a situation like Francoise, we have some ideas for you.
Until the next one!
