Profile of the Theoretical Investor
Realistic Assumptions Used
- Country: France
- Traditional tools to compare Vellum with: LMNP, Pinel, Malraux, Censi-Bouvard
- Inflation: 2.4% annually
- Reinvested Returns: All strategies reinvest net returns yearly
- Indexation of Real Estate: 1.5% annual appreciation (France), 3.2% for international prime markets
- Taxation: French PFU (Prélèvement Forfaitaire Unique) at 30% for dividends & capital gains, except tax-free structures
- Rental Taxation: LMNP amortization used to offset income where applicable
CAPITAL EVOLUTION OVER 15 YEARS
Traditional wealth management is outdated and no longer benefits the client. Between commissions, taxes, and inefficiency, traditional wealth management firms get rich while you lose. In reality, you think you're winning against the system because you're led to believe that tax breaks increase your wealth, when in fact, your growth is either negative or almost imperceptible. This tends to create an unhealthy portfolio that keeps you in debt and non-liquid.In France, for example, terms like LMNP, Pinel, Malraux, or Censi-Bouvard are traps, and each country has its own versions of these kinds of tools that only serve to enrich the government, banks, and commission-based wealth managers.
— Damien Soitout, CEO
Capital Evolution Over 15 Years
Average Annual Earnings (€)
AVERAGE ANNUAL EARNINGS (€)
By remaining extremely cautious and taking the French market as an example, one can easily see the complete inefficiency of investments made by traditional wealth management firms. Investing €100,000 in France, as is currently done and as has always been the case, will cause you to lose more money and liquidity than by diversifying your investments abroad, using the same sectors and types of instruments.In a globalized and interconnected world like the one we live in today, there is no excuse for not using all the tools at your disposal and diversifying your assets and liquidity.
— Damien Soitout, CEO
THE REALITY TO CONSIDER
Wealth management needs to evolve, and Vellum is a pioneer in this area.
French Tax Strategies
1. French Pinel Law (Realistic)
Property Price: €280,000 | Rent: €850/mo regulated | Loan Rate: 4.2%
Net Annual Cash Flow: –€4,200
15-Year Capital After Resale (indexed): €335,000
Net Net Result After Taxes: –€48,000
2. Malraux Law (Realistic)
Property + Works: €400,000 | Tax Reduction: €24,000
Cash Flow: –€6,000/yr
Resale Indexed at 1.5%/yr: €465,000
Net Net Result: –€32,000
3. Censi-Bouvard (Realistic)
Initial: €210,000 | Guaranteed Rent: €520/mo
Resale Penalty: –25% average
Net Net Result: –€57,000
4. LMNP Amortized (Realistic)
Property: €180,000 | Rent: €900/mo
Amortization Shield: 12 years
Net Net Result: +€21,000
Alternative Strategies
5. Alternative Strategy A — Luxembourg RAIF Private Credit
Return: 8.2% net | All gains tax-deferred
Capital After 15 Years: €770,000
Net Profit: +€520,000
6. Alternative Strategy B — Singapore VCC Global Equity + PE
Return: 11.5% net | No French taxation until distribution
Capital After 15 Years: €1,010,000
Net Profit: +€760,000
7. Alternative Strategy C — International Real Estate (REIT + Direct)
Average Yield: 6.1% net | Appreciation: 3.2%
Capital After 15 Years: €640,000
Net Profit: +€390,000
| Investment Strategy | Final Capital | Net Result | Total Return % | Avg. Annual Return % | Avg. Annual Earnings (€) |
|---|