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Homes for the joy of living = good investment? Why we think so

A Realitalia home is for your Joy of Living. Actually we have never really separated too much the concept of joy andconvenience with the investment angle. We believe they are deeply interdependent.

In fact:

By creating very well thought homes we also create strong capital appreciation potential. We call this profoundwork on our Italian Homes Intelligent Design, see more on Your AdvantagesBy working very hard on the organization of the Management System and its economy of scale, we strive to createthe opportunity for you to obtain functional and economical services, in a way these Italian Homes can beeffectively managed with affordable costsThanks to the Letting Management and Promotion System, the Realitalia Homes offer a concrete possibility toobtain good rental returns (and solid capital appreciation potential for investors). The Realitalia LettingManagement and Promotion System of our property in Italy produces a solid base to achieve an pro-active lettingmanagement of your Italian home.

A professional approach not only to the management itself but especially to an international letting marketing of yourItalian property generates a strong opportunity to obtain substantial returns on letting.

An Italian home that can produce good letting return with little management by the owner is - in our opinion - avaluable investment.

Many people see it this way.

In fact, we noted that our Italian homes tend to produce a stronger capital appreciation than just the market trend.

We are so confident on our property in Italy that we are happy to offer you guaranteed rental returns on most of theItalian Properties we deal with.

In addition by combining it with a financial leverage - link to Mortgage Information - you can achieve even higherreturns on your equity.

For a more concrete approach, we have developed the buy to let case studies. They are just examples and do not offerany guarantee that these results will eventually be achieved in the future but it looks to us a good way to discussthings in greater details.

Call us to 0870 890 9936 or write to us to discuss this in further details.

Year 2009 - buy to let case studies* The first example is based on the two bedroom, one bathroom flat Alloro at Ville degli Olivi.

The apartment enjoys a good size panoramic terrace, and benefits of all the privileges of a Realitalia Managedproperty in Italy, such as the Basic Management Services, the Optional Management Services/Concierge Services andthe Letting Management and Promotion as well as access to shared facilities as gardens and a swimming pool.

In this area - thanks to the excellent access (Pisa airport at 40 minutes) and to the many possibilities that thislocation offers (sea at 35 minutes driving, Florence, Pisa, Lucca, Siena etc at a short drive) - our local partners in2009 achieved a letting occupancy in excess of 20 weeks.

This was obtained without any particular letting management system in place, for this reason we feel there is roomfor improvement.

Nevertheless the following calculations have been prepared considering this occupancy level achieved in 2009.

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On the basis of this experience we worked out the following expected figures*:

Letting gross income, 20 weeks of occupancy, deducted the Letting management system fees, Euro 13,93060% mortgage** at 2.40% interest (March 2010) for 20 years monthly installment (178,200, terms and conditionsvary) Euro 935Mortgage broker fee equal to 0.80% of the mortgage Euro 1,425Mortgage fee and costs, including an expected 1,350 building insurance fee (it can greatly vary depending on theproperty), Euro 1,950Mortgage tax (2% or 0.25% if applicant is going to be resident in the property) assuming the higher rate Euro3,564Additional Notary cost in connection with the Mortgage deed Euro 2,000Annual service charge Euro 1,500 (Basic Management Services)Annual consumption/contribution to sinking fund Euro 500***Cost to purchase the property (notary deed around 3,000 and minor costs) Euro 4,000VAT applicable to purchase reduced rate of 4% if resident, 10% if investment/second home purchase Euro 29,700Standard Furniture package (Euro 25,000 + VAT) Euro 30,000

The equity expected to complete the purchase is Euro 195,003 on which - in accordance with the numbers highlightedbelow - we expect a gross return on equity (ROE) in excess of 7%.

This figure does not take into consideration any capital appreciation potential that - where achieved - would increasereturns considerably.

The second example is based on the three bedroom, two bathroom house Faggio at Borgo inChianni.

The house enjoys a good size garden from which you can directly access the communal garden and the swimmingpool, three bedrooms, two bathrooms plus an en-suite shower room, and of course all the privileges of a RealitaliaManaged property in Italy, such as for example access to shared facilities as gardens and a swimming pool, and ofcourse the Realitalia Management System.

Taking into account the occupancy level considered above.

On the basis of this trend we worked out the following expected figures*:

Letting gross income, 20 weeks of occupancy, deducted the Letting management system fees, Euro 18,13060% mortgage** at 2.40% interest (March 2010) for 20 years monthly installment (225,600 terms and conditionsvary) Euro 1,185Mortgage broker fee equal to 0.80% of the mortgage Euro 1,805Mortgage fee and costs, including an expected 1,500 building insurance fee (it can greatly vary depending on theproperty), Euro 2,100Mortgage tax (2% or 0.25% if applicant is going to be resident in the property) assuming the higher rate Euro 4,512Additional Notary cost in connection with the Mortgage deed Euro 2,500Annual service charge Euro 1,900 (Basic Management Services)Annual consumption/contribution to sinking fund Euro 627***Cost to purchase the property (notary deed around 3,500 and minor costs) Euro 4,500VAT applicable to purchase reduced rate of 4% if resident, 10% if investment/second home purchase Euro 37,600Standard Furniture package (Euro 32,000 + VAT) Euro 38,400

The equity expected to complete the purchase is Euro 241,817, on which - in accordance with the numbershighlighted below - we expect a gross return on equity of about 7.5%. This figure does not take into consideration anycapital appreciation potential that - where achieved - would increase returns considerably.

What we expect to obtain within the first three years of letting operation in the Chianti Pisano:

We believe there is scope for improvement due to the Realitalia Letting Management and Promotion System and ofcourse due to the unusual care of the products selection and finishing of our Italian property.We believe that the fact we offer a properly organized concierge service available to guests (as well as to owners)would produce more returning clients, more word of mouth and especially room for a price increase comparedwith the existing local market.We believe that in the event we are able - as planned - to offer more indoor facilities, in particular a SPA centerlocated in the area, this could produce more occupancy, especially in the medium and low season, giving guests anopportunity to spend some time in the Chianti Pisano out of the traditional season.

Call us to 0870 890 9936 or write to us to discuss this in further details.

*All the information provided is complimentary and for guidance only, it contains approximate figures thatcan vary at any time. Generally speaking all the information provided for by Realitalia is not intended to benecessarly complete and/or to supply any tax or legal advice. Realitalia suggests you always seek independentand competent legal and tax advice before you enter into any binding relationship to purchase any real estatein Italy;

**This information is for guidance only and it is subject to the bank acceptance upon the client's application.Mortgage information was supplied by Mr Armando Bechi, www.armandobechi.com (Mortgage Broker).Thank you Armando for your collaboration;

***Please note that in the yearly running costs it was not included any figure for the payment of ICI taxand/or any other tax that might be due on your Italian property.

http://www.realitalia.co.uk/en/investment-property http://www.realitalia.co.uk/en/investment-property

Investment property - RealItalia Prop... 8/6/10 2:29 PM 8/6/10 2:29 PM