So why do we sell if everything is so great you may ask? Well we sell because we made a mistake that many first timers do. We started a business with no capital!
As every business student would know that is a no-no. And it is a no-no because all your handsome profits end up going to the bank to pay off your loans. In addition to that we started our business as a 3 person partnership so we had to pay 3 times more for social security expenses and ofcourse there were 3 families instead of 1 splitting the profits. So we ended up right at the beginning. Working long hours, making a lot of money but ending up with bills instead of savings!
But that will not be you! Because you do have the capital. You will make the investment, owing nothing to no one, and then all the profits will be yours to keep!
With 1,000,000 € you buy a prime property in the historical center of Mytilene AND a profitable business that is already working!
And in addition to the long term increase of the property's value you also get a minimum net yearly return of 5% on your money (RISK FREE) which can easily be increased to a 8.25%! And at the same time you get a superior quality of life at a fraction of the living costs you are paying right now!
If you run it as a family owned business eg with two shifts covered by you and your wife then monthly expenses are like this:
Employee salaries : 1,140 - 1,200 €
Social security : 960 €
VAT 9% : 778.78 € (calculated on the example's 9,432 € gross monthly income)
Taxes 23% : 1,238 € (calculated on the example's 9,432 € gross monthly income)
Cleaning services: 450 €
Utilities : 350 €
Breakfast supplies: 200 €
NET AVERAGE MONTHLY PROFIT: 4,255.22 €
This means that with the average net profits calculated with the data of the worst years you still get 2.7 times more than a family of 5 needs to live in Greece (rent, utilities, transportation etc all counted in). That's your 5% return right there! And since it's calculated on a worst case scenario it's pretty much 100% guaranteed!
And if we do all the calculations with the data from "normal" years eg an annual gross income of around 150,000 € then your monthly net profits would be 6,875 €. That is 4.4 times more the cost of living for a family of five and more than 8% return on your investment.
Imagine being able to save up to 60,000 € a year! Every year! Instead of just trying to make ends meet.
guaranteed & risk free!?!
5% yearly return on a 1,000,000 € investment
Did you know that living in Australia is 46% more expensive than it is in Greece? And rents are a staggering 327% higher too!
Did you know that living in USA is 31.5% more expensive than it is in Greece? And rents are 289% higher!
Did you know that living in the UK is 29% more expensive than it is in Greece? And rents are 219% higher!
Imagine how much more you can get with your money when you make this kind of savings!
Have your own hotel in Greece!
I know it sounds counterintuitive to invest in Greece but keep in mind that even in the midst of the economic crisis -let alone all the global turbulence- Greece is still setting new records in tourist arrivals!
Even this year, 2016, in the island of Lesvos where tourism dropped a shocking 60-70% a small hotel -like ours- in the center of the island's capital city Mytilene is still able to work at 65% occupancy year round and have net profit of thousands of euros!
Need some hard data? No problem!
From February 2016 to June 2016 Porto Lesvos Hotel had an average occupancy of 81.6%. That is 1,450 nights spent at an average price of 40 € meaning 11,600 € monthly gross income.
In the last 18 months from January 2015 to June 2016 the average occupancy was 65.5% and the average monthly gross income was 9,432 €.
REMEMBER! These numbers are for the worst times of our island's tourism and with no effort whatsoever on our part to promote our business other than using our website and our facebook page!
In the good old days -the ones that are sure to return sooner or later- the monthly gross income had been as high as 18,000 € in the summer months.
So what's the net profit?
So why do we sell then?
Porto Lesvos Hotel
Hmmm... I am interested.
What is your net worth?
So you may have a big house, a business, savings in the bank etc but do you really get what you deserve out of them? According to the data above...no! At least you could be getting so much more! Listen, living a rich life is not only about how much you earn or have but also about how much you are spending.
A $40,000 annual income might be small in the US but more than pretty good in Greece. It's all about the cost of living.
So if you have a net worth (house, business etc) of say 900,000 - 1,000,000 € you should be living a rich life. But if you are not...then you should really think about your choices especially if you are an expat from Lesvos, Greece!