December 1641 - Day 138

Since the first day is "1", it means that in day "141", Martti will have lived 20 years in CryptoTown. That is a long time.

It also coincides with Martti's long term goal and wish to be financially independent. The recent deals have come quickly and made the life much more satisfying - a new phase is starting!

Martti now owns 25% of Martti Tailors Inc (stake valued at 125 mil, no personal risk except to lose this value). And his address has recently moved to Martti's Lane 16, to a brand new Baron-rated 180 sqm townhouse, of which 60 sqm is commercial space (payout 1.45 mil) and the rest produce a cool 31 CUL+IC, up from 7 last year in the small place in B.4.

Because the new place is so much better, it produces 113% more rent per sqm and 66% more culture. And is double the size. But he still owns the old house, and the 250 sqm lot that did not see building because the Wood building has been delayed all the 15 years he has owned it (it is coming in ~5 more years!).

For the first time, except for fleeting moments in the past, Martti can just buy what he wants, instead of thinking if it could be sold higher. The first thing he buys just because I can, is a Venetian mirror of 1x1 m size. The import tax alone for such a treasure is 1 mil. But the price does not matter, he wants it, and buys it. (If you do not want to play for 138 days to get the feeling, deposit is the option for you: the mirror cost $0.80, which is easier to inject from the outside than make in-game).

So, in round numbers, Martti's stake in the business is worth 125 mil, his real estate up to 200 mil and other stuff 75 mil. This makes him a 400 million guy, which is a lot closer to 1 billion than anything before. If God gives him even 25 more years, 3.8% annual growth will suffice for the goal. It seems achievable.

The building calculations are something that need to be analysed carefully - not that Martti cared about them when building what he wanted though, but because investing half of the capital in real estate makes sense only if it returns more than 3.8%. Can this happen?

Let us examine the money that went into the project:
- The lot cost 27.0 mil, and was admittedly such a good deal that Martti did not even think of alternatives. There are few small lots for sale except in B.4 (where Martti owned 2*100 sqm). This macrolocation is 65%!
- 234,000 stone was used at about 62 m/unit, totalling 14.5 mil
- 18*WIASS windows were bought at bid but did not sell at ask, so were used in own building instead, let's say midprice 2.7 mil
- The building is 80% lux, so a real deal; the money paid for this is 12.6 mil and the rest comes as work...
- ... which totalled 3,762 BLD. It cost about 11,500 pop, so 43.3 mil

All in all, the money invested was funnily enough 100.1 mil, so let's make it a round 100 :)

The first glance is to evaluate the annual payout against the investment, to get the payout%. To be conservative, we use 0.050 mil to value the CUL output and 0.075 for the IC. This makes 3.88 mil from the top 2 floors, and 1.45 mil from the basement. The taxes payable are limited to 0.12 mil building tax.

So the payout is a very nice 5.21%, very much higher than the 0.45% offered by CON, for instance. If longer term analysis is needed, the buildings deteriorate, which affects their payout and they need repairs. The lot, stone and windows do not depreciate (45% of the total costs retain their value). Lux depreciates at 1% annually, and the labor(BLD) is variable - in this case 3 stories on normal wetness land with terraced flat roof equals 1.5% annual.

So the real return is about 4.5%, and that should be enough to make people join the party! :)