Dear friends,
In philosophy a first principle is a basic statement or assumption that cannot be deduced from any other statement or assumption. The search for first principles is not peculiar to philosophy; philosophy shares this aim with biological, chemical, and historical research, among others. In physics, a calculation is said to be from first principles if it starts directly at the level of established laws of physics.
In his book ‘Physics’ Aristotle makes the following statement about progress and knowledge: “… It is clear, then, that in the science of nature as elsewhere, we should try first to determine questions about the first principles…Hence it is necessary for us to progress, following this procedure, from the things that are less clear by nature, but clearer to us, towards things that are clearer and better known by nature”. Aristotle says it clearly, start with what you understand and then expand your knowledge.
At Artemis Assets we always try to go back to our First Principles of Real Estate investing, something that is commonly understood. Our aim is to provide our clients with financial security and financial independence by putting their savings to work for them. Simple, easy to understand, and everybody wants it! Only when this principle is understood by clients and investors, then we can build upon that understanding and demonstrate how investing in properties can build your wealth.
So how do we get from theory to practice? That’s the easy part! If you look at Real Estate as an investment asset you will find that it has 6 major benefits:
- The asset appreciates over time, especially in an inflationary environment.
- The rental income is covering your mortgage payment and expenses.
- By using the bank’s money you leverage your savings.
- Inflation reduces your historical debt over time.
- You receive immediate cash flows by renting from Day 1.
- You have tax benefits through deductible expenses and depreciation.
If you believe that we share the same first principles, please reach out to us with your investing requirement. We have shown you the theory, now it’s time to move to practice.
Until the next one!
