Tavira, The Algarve, Portugal Apartments - Investment Opportunity. *capped at 4% **based on a 1 bedroom apartment

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1 Mortgage paid for first 2 years* All closing costs paid Instant equity of 32,300** You save 40,487 on bank value and closing costs** 5 weeks personal usage per year *capped at 4% **based on a 1 bedroom apartment

2 Historic Tavira Quinta do Morgado is a charming country estate in the midst of ancient trees and beautiful gardens. Close by is Tavira, a historic town, known for its art, culture and interesting architecture. Accommodation comprises two options, the Monte da Eira Standard and recently opened Monte da Eira Superior, giving you a wide choice for the perfect quality stay nearby golf courses, water sports and beaches. Traveling to Tavira you re only 35km away from Faro airport and once in Quinta do Morgado, public transport is easily accesable with buses only 100m away and the train station 1km away. There is plenty to do around Quinta do Morgado, beaches are only 2km from the resort and the closest golf course is only 7km away.

3 The Deal Summary The Deal Structure: We have negotiated a volume discount on this development to ensure: 20% assisted deposit 3 years interest only mortgage paid* (capped at 4%) All closing costs paid Deposit 32,300 Closing costs 8,187 2 years interest only mortgage rate of 3.5% You Save 49, On a 161,500 apartment Total Saving 31% Hotel: Package: Traveling to Tavira you re only 35km away from Faro airport and once in Quinta do Morgado, public transport is easily accesable with buses only 100m away and the train station 1km away. There is plenty to do around Quinta do Morgado, beaches are only 2km from the resort and the closest golf course is only 7km away. 5 weeks personal usage, Restaurant/Bar, Swimming Pools, Mini Golf, Childrens Playground, Tennis Court, Parking. Price: Studio apartments from only 109,000 1 bed apartments from only 161,500 2 bed apartments from only 230,700 This is a illustration of a typical one bedroom unit in Tavira, assuming a typical 30 year 3.50%, 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.

4 The devil is in the detail Bank March ,500 registered property value Deposit (32,300) Net purchase price (mortgage) 129,200 Allocated Costs IMT tax 3,497 Purchase Deed tax 1,292 Mortgage Deed tax 748 Lawyers fees 1,000 Registration & Notary Costs 1,150 Bank fees 500 (8,187) Deposit assisted by us 32,300 Associated costs assisted by us 8, Total cash outlay 0 ====== Total Investment cost 130,850 Percentage of Registered property value 81.02% Year 3.5% 1 interest only (4,522) 2 interest only (4,522) 3 interest only (4,522) 4 capital/interest (7,404) 5 capital/interest (7,404) Cash Outflow (28,373) Profit ( ) Capital Repaid ( ) Forecast Net income 1 guaranteed 4, guaranteed 4, net rental 6,948 2, net rental 7,303 (100) 2,928 5 net rental 7, , Cash Inflow 30,972 2,599 Outstanding mortgage balance at end of year 5 123,239 Equity 38,261 Surplus cashflow at end of year 5 2,599 ====== Net position against registered property value year 5 40,860 (Excluding any capital value increase) ======= The figures above do not include any commitment fee you may need to pay. All figures are based on the current capital values and interest rates.

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6 The Opportunity With its warm, pleasant climate, lively Mediterranean culture and strong travel links with the UK, Portugal retains a strong attraction for 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 Instituto Estatistica states in the Algarve prices have seen a 4.4% correction, during the year to September Comparing this to the corrections experienced in Spain and the UK, Portugal continues to be a prudent destination for investors. Our strength is that we work from a current bank valuation, which takes account of any market correction. We negotiate directly with the developer and commit to a deliverable time scale for completion, including going to Promissory Contract. Our commitment to the developer enables us to offer a scheduled completion timetable. Portugal listed in top 3 places in Europe to make money in real estate. TV Channel 4: A Place in the Sun