39
each member thinking him or herself of modest means, could pool their efforts and incomes (assuming they all get along with and trust father) and all eventually receive Portuguese citizenship.
How to further reduce costs
and so
I'm told the price of a ticket to Lisbon (BCal) purchased in Macau is cheapest (it includes Macau-Hong Kong-Macau ferry tickets). Macau-Lisbon is a "cabotage" (domestic) route: is unregulated. Carriers can charge lower prices--especially if encouraged to do so by the government (s) concerned.
If you have all (or part) of the initial purchase price on hand, you won't have to pay the interest cost above. But think- ing that way is deceptive--if you currently have the money, you're earning interest. Interest foregone is also an expense.
The cash-flow approach
There's another way of looking at the sums involved. The tables (pages 37 & 38) took an overall, profit-and-loss approach. If we look at the financing question on a cash-flow--or forced- saving--basis, we might have a different impression.
Reworking the first table (page 37--the less-optimistic projection), we come up with:
1. Net cash outlay (interest minus rental income)
18 months at $HK7,651.88 per month; 66 months at $HK4,970.63 per month
2. Net cash inflow (7 years later)
Sale of property Less repayment of loan
$HK794,203.80
510,125.00.
$HK465,795.00
•
$HK284,078.80
At the end of seven years, for an expenditure of $HK465,795 you have $284,000 in the bank--plus passports for all the family. Doing the same calculation on the more optimistic forecast, the final result--money in the bank plus passports--is the same. the expenditure (over seven years) is only $HK219,939.
The downside risk
But
In the worst case, assuming everything goes wrong (forecasts of capital appreciation, rental revenue, currency movements, etc.) what do you have?
No comments yet.
Private notes are available after approval.