Albufeira, the Algarve, Portugal

Balaia Atlántico, AlbufeiraHotel Apartment - Investment Opportunity

Located in the cent re of the A lgarve, bathed by the At lant ic Ocean,A lbufe i ra is the capi ta l o f Por tuguese tour ism. F i l led wi th beaut i fu llandscapes adorned by c l i f fs which lean over magni f icent beachesfeatur ing extended sand areas,which impress ive ly cont rast w i th the p ic turesque s ight of the count rys ide region, A lbufe i ra combines manyvar ied aspects for a dream hol iday and a lso has a great var ie ty ofrestaurants ava i lab le, o f fer ing the most re f ined specia l t ies of theAlgarve t rad i t iona l cu is ine as wel las in ternat iona l d ishes.

The unmatchable phenomenon ofthe A lbufe i ra n ight , br ings together tour is ts and loca ls as wel l asin ternat iona l ce lebr i t ies, a l l in ag lamorous cosmopol i tan ambience.

The 30 km of crysta l water, o f the f in-est golden sand, make A lbufe i ra the idea l p lace to spend a hol iday and to pract ice var ied le isure and spor t ing act iv i t ies. Af ter a fabulous day at the beach, a gol f match or a p leasurable walk , there can be noth ing bet ter than savour ing your favour i te dr ink in one of the many outdoor cafes A lbufe i ra has to of fer.

Benef i t ing f rom a warm temperature c l imate in A lbufe i ra you can en joy a heal thy, re lax ing l i festy le a l l year round.

Albufeira, the Algarve, Portugal

The Deal SummaryThe Deal Structure: A £1,500.00 Commitment Fee Plus £450.00 Administration Fee Total £1,950.00 to purchase an apartment

We have negotiated a volume discount on this development to ensure:

20% assisted deposit 3 years interest only mortgage paid* (capped at 5%)

All closing costs paid, which equate to 9%

Total Saving 42% Deposit €58,000 Closing costs €20,504 3 years interest only mortgage €18,910 @ rate of 2.717%

Year 4 onwards net 6% N/A --------- €97,414 --------- On a €290,000 apartment

Hotel: Fully operational 4* apart-hotel in Albufeira, Algarve, Portugal opened in 2006. The borough of Albufeira receives a considerable percentage of the 5 million tourists who visit the Algarve annually. The frenetic summer season now extends into the rest of the year, for visitors of all ages and from all over the world.

Package: 2 weeks personal usage, Restaurant/Bar, Swimming Pools, Mini Golf, Childrens Playground, Tennis Court, Garage Access, Amphitheatre and Multi-function track.

Price: Prices from just €290,000

This is a illustration of a typical T1 one bedroom unit in Balaia Atlántico, assuming a typical 25 year mortgage @ 2.717%, with years 1-3 being interest only. The deal structure is such that the developer has agreed to cover year 1-3 interest only mortgage paid monthly in advance at the prevailing euro-bor rate. From year 4 onwards at a maximum of 6% net of the loan amount.

Albufeira, the Algarve, Portugal

The devil is in the detail € €Bank valuation @ September 2009 290,000 registered property value Deposit 58,000Net purchase price (mortgage) 232,000

Allocated Costs IMT tax 12,488Purchase Deed tax 2,320Deed tax 1,804Mortgage Deed tax 1,392Lawyers fees 1,000Registration & Notary Costs 1,000Bank fees 500 20,504 -------

Investor Commitment fee 1,950Deposit assisted byus (58,000)Associated costs assisted by us (20,504) -----------Total cash outlay 1,950 ====== Total Investment cost 233,950 Percentage of Registered property value 80.67%

Year €Mortgage @ 2.717% 1 interest only 6,303 2 interest only 6,303 3 interest only 6,303 4 capital/interest 14,020 5 capital/interest 14,020

Forecast income 1 guaranteed (6,303) 2 guaranteed (6,303) 3 guaranteed (6,303) 4 Net minimum (13,920) 5 Net minimum (13,920)

Surplus/(negative) cash flow 0Outstanding mortgage balance at end of year 5 216,156Equity 73,844 ====== Total cash outlay 1,950Net position against registered property value year 5 71,894(Excluding any capital value increase) =======

Albufeira, the Algarve, Portugal

Albufeira, the Algarve, Portugal

Its extraordinary climate, with more than 3000 hours of sunshine per year, (see the weather page http://albufeira.com/weather/default.asp)and the friendly charm of its peoplepersuade many foreigners to moveresidence to the region, either temporarily or permanently. We find more and more people select Albufeira as their favourite destination because of its multipleattractions, i.e. the lively and socialnightlife, the beautiful beaches, varied water sports, golf courses, gloriouscountryside and the local cuisine.

Albufeira, the Algarve, Portugal

Apartment Characteristics

Built with acoustic isolation on walls and floors, apartments entirely decorated and furnished,with carefully selected materials, contrasting design ceramic material floors, exotic woodfurniture Mutene of an exclusive, design with stainless steel details, lowered ceilings withembodied light, TECHNAL Aluminium, double glazed windows, Acclimatization, Satellite TV, Lounge music, Network access telephone Digital- Phone central, Internet access, Safe, FireAlarm System, Public area automatic lighting system, Card opening electronic system,SCHINDLER Panoramic lifts.

RoomsWell dimensioned rooms, furnished with exotic wood Mutene of an exclusive design withstainless steel details, wide fitted closets, chest of drawers/ dressing table.

Kitchen Kitchenette design, Danish production furniture by HTH in anodized aluminium natural colour,electrical blinds (allows the closing of the Kitchenette) equipped with glass ceramic cooker,electric oven, microwave, coffee machine, countertop with a sink, fitted fridge, VISTAALEGREdinner wear, cutlery and glasses.

Sitting/Dinning RoomExcellent area, exotic wood furniture Mutene of an exclusive design with aluminium details,balconies with a view over the pool, garden and leisure outdoor areas.

Bathroom Complete with Vidracos Moleano stone countertop, double sink, SANINSUA Millenium seriestaps and toilet fixtures (suspended) CINCA Nova Arquitectura covering alarm.

Albufeira, the Algarve, Portugal

The OpportunityWith its warm, pleasant climate, lively Mediterranean culture and strong travel links with the UK, Portugal retains a strong attractionfor British buyers looking for a second property abroad.

The government in Portugal introduced strict building regulation laws in the early 1990’s, therefore meaning that construction of new build properties has slowed considerably during the last decade. Because of this, the Portuguese property market has given rise to consistent capital growth in recent years.

Currently, Portugal is in the top three on the list of popularity for UK overseas property buyers – with the Office of National Statistics estimating that Brits bought 5,100 homes there in 2004/5, and with continued increases through 2007/8.

Portuguese properties have proved resilient throughout the current economic crisis, although prices have declined the InstitutoEstatistica states in the Algarve prices have seen a 4.4% correction, during the year to September 2008. Comparing this to thecorrections experienced in Spain and the UK, Portugal continues to be a prudent destination for investors.

Our is that we work from a current bank valuation, which takes account of any market correction. We negotiate directly with thedeveloper and commit to a deliverable time scale for completion, including going to Promissory Contract. Our commitment to thedeveloper enables us to offer a scheduled completion timetable.

Portugal listed in top 3places in Europe to make

money in real estate.

TV Channel 4:‘A Place in the Sun’

Albufeira, the Algarve, Portugal