Ready2Invest Guide to Property Investment in Santa Ana, Spain

Santa Ana, Costa Almería, Spain29/2/08

24% below market value First-class golf development

We are pleased to bring you a deal that has everything - prospect of capital growth, considerably under the market value and serious leverage - all in Britain’s number one second home destination, Spain, in the heart of its hot spot region of Almería.

We’re very excited about Santa Ana. The last time we found a deal similar to this was 2 years ago. Playa Macenas, was priced at €2,600 per m2 against a market price of €3,300 per m2. Since then prices have rocketed and are quoted at upwards of €3,800 per m2, reaching over €5,000 per m2 for some plots. This new deal, 20 minutes from Mojacar, is being offered at €2,764 per m2 against the market price of at least €3,800 per m2.

Santa Ana is part of the greater Mundo Aguilón golf resort, a high-end development offering 2- and 3-bedroom apartments with underground parking and private terrace space, fantastic views of the golf course and of the sea just under 2km away. Sea views and a golf course location tend to add high premiums to property prices. In addition to these, there will be excellent facilities including golf clubhouse and tuition, communal pools, year-round security, shops, bars and restaurants and a hotel and spa to be built at a later stage. In short, it is planned as a top quality development. Just as Playa Macenas has been driven by a major developer, George Soros’s MedGroup, Santa Ana is part of a master plan which is funded by one of Spain’s foremost banks, BBVA. Furthermore, BBVA’s development arm is one of the active partners in the project.

By far the best thing about Santa Ana is the financial package. The price is €276,400 (£184,267) for a 2-bedroom apartment, an amazing 24% under market value. With just a 15% deposit required and 85% payable on completion, the opportunity is there to use leveraging to great advantage. At a conservative estimate of 5% growth over 5 years, the value of your property could increase by 68%. This means a truly remarkable 450% return on your initial investment. And all this in a stable, mature market like good old Spain!

Read on to find out more – we think this deal is a winner.

Best wishes,

Jonty and Alise Crossick

contact us

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new address!Olivier House18 Marine ParadeBrighton BN2 1TL

Executive Summary

Spain - Santa Ana 2 Ready2invest

Key Points

• 15%/20% deposits required

• From 24% under market value

• €2,764 per m2

• 70% LTV mortgages

• Assignable contracts

• 45 minutes from Almería airport

Deal SummaryWHY COSTA ALMERIA? (PAGES 4-5)Reasons why we think that the Costa Almería is a great place to invest.

LOCATION AND INFRASTRUCTURE (PAGES 6-7)About the area and transport links.

ABOUT THE DEVELOPMENT AND DEVELOPER (PAGE 8)2- and 3-bedroom apartments on a golf development with sea views.

SITE PLANS AND FLOOR PLANS (PAGES 9-10)

UNDER MARKET VALUE (PAGE 11-12)From 24% below market value.

RENTAL COMPARABLES (PAGE 13)Average returns for similar properties in the area.

DEAL STRUCTURING (PAGE 14)15%/20% deposits; range of financing options.

SENSITIVITY ANALYSIS (PAGE 15)LTV available and contingency.

COVERING YOUR COSTS (PAGE 16)Rental yield forecast.

PROFIT FORECAST (PAGE 17)Capital growth projections.

RETURN ON INVESTMENT (PAGE 18)Equity increase due to capital growth.

PAYMENT TIMETABLE AND EXIT STRATEGY (PAGE 19)

TAX (PAGE 20-21)Overview of tax system in Spain

MORTGAGES (PAGE 22)We recommend Bancaja for mortgages, others available.

LAWYERS (PAGE 23)

CURRENCY (PAGE 24)

READY2INVEST FEE (PAGE 25)The Ready2invest fee is £2,500 +16% VAT.

ABOUT READY2INVEST (PAGE 26)

NEXT STEPS (PAGE 27)

RESERVATION FORM (PAGE 28)


Why the Costa Almería?

excellent climateThe south coast of Spain has long been a magnet for northern Europeans seeking respite from cold, cloudy drizzle and when you look at the climate it’s not surprising. With an average of 325 days of sunshine per year, the south eastern corner of Spain enjoys beautiful year-round weather. It has a semi-arid climate with mild winters and long, warm to hot summers and very low rainfall too. In fact, Almería is reported to be the sunniest region in Europe, with an average 3000 hours per year1.

easy to Get toSouth eastern Spain is extremely well-served for air travel. There are major airports at Almería, Malaga, Alicante and Murcia. It is possible to fly to the area direct from all parts of the UK, with no need for a time-consuming transfer in London. All the budget airlines fly to either Malaga (2 hours drive), Alicante (2 hours), Almería (1 hour) or Murcia (11⁄2 hours). Flight time is approximately 21⁄2 hours.

GorGeous settinGThe province of Andalucia is a large one, and its eastern end, the Almería region, is blessed with beautiful scenery. The Sierra del Aguilón (Mountains of the Eagles) rise up to the north and gorgeous sandy beaches stretch out along the Mediterranean. In between there are quaint hill towns and the famous, atmospheric “white villages” where it seems time stands still. Dramatic rock formations dot the coastline and you might recognise places you have seen in famous “spaghetti westerns”, and “Lawrence of Arabia”, which were filmed in the region.

restricted PlanninGHaving learned the lessons of over-development further round the Mediterranean coastline, the authorities have clamped down on the planning permission process. Much of this region is protected national parkland with the remainder being agricultural land. It is notoriously difficult to obtain change of land use permission, and all other building requests have to go through a complicated and time-consuming process at various levels of government – local and regional. It is not permitted to build on front-line seafront land, any new buildings must be set back, and no building can rise higher than three storeys. This is good news for the property investor as it restricts supply and preserves the region’s natural beauty.

imProvinG infrastructureThe Almería province will benefit enormously from the upgrade of a stretch of road through the region to motorway status. When completed in approximately 18 months (mid-2008), it will create a high speed route to Valencia and Barcelona and onwards up into France. This will make travel in and out of the region much quicker and will drastically reduce journey times to these attractive cities, making it easier to explore other parts of Spain.

beautiful towns and Places to visitAndalucia is a stunningly beautiful region, jam-packed with fascinating historical sites, reflecting and celebrating hundreds of years of civilisation. Not-to-be-missed destinations include the Alhambra of Granada, the romantic and historic Seville, several nature reserves including the mountains of Sierra Nevada and Cabo de Gato-Nijar reserve. Mojacar was built as a Moorish hill-fort and its streets snake up the steep hillside, offering great views from the top. Dotted along the coastline are old Moorish towers, lookouts for sea-borne invaders.

1. http://spainforvisitors.com/module-ContentExpress-display-ceid-110-meid-1054.htm?meid=1054


Why the Costa Almería?

GolfThe south of Spain has always attracted the keen golfer with its excellent year-round temperature and challenging and beautifully designed courses. There is plenty to interest players of all levels. In addition to the course at Mundo Aguilón, there are several other courses in the area which offer variety to players of all standards.

activities (includinG sKiinG within 2 hours drive)This region of Spain is one of those places where it is possible to spend a morning on the beach and then enjoy an afternoon’s skiing in the Sierra Nevada, approximately 2 hours inland. As well as golf – there are a couple of other courses in the area if you fancy a change from the course at Mundo Aguilón – there are the obvious attractions of the beach – swimming, boating (there is a marina at nearby Garrucha) and water sports. You can also go horse-riding, hiking, play tennis and enjoy a host of other outdoor activities, thanks to the pleasant weather.

year-round rentalsWith its mild climate, south east Spain attracts visitors all year round. Golfers, in particular, relish the opportunity to play in the mild weather, compared to the heat of the summer. This means good potential for rental yields, even outside of the high season. On a recent site visit at the end of October, there were still plenty of people on the golf course, by the pool and in the sea.

lifestyleLife in southern Spain is laidback and relaxed. Perhaps it is something to do with the weather, or maybe it is the proximity to the beach, but life is lived at a slower pace there. In common with the rest of Spain, life should be enjoyed, and spent happily with family and friends in front of a cold glass of wine and a plate or two of tapas, or relaxing on the beach, or savouring the great outdoors or just making the most of your absence from the rat race, even just for a little while.


Santa Ana Costa Almería, SpainlocationMundo Aguilón golf development is situated on the Costa Almería at the eastern end of the Andalucia region in the south east of Spain. At the foot of the Sierra del Aguilón range of hills, and just under 2km from the coast, the development will occupy a 200 hectare site, built around an 18-hole golf course.

The Costa Almería consists of miles of sandy beaches, interspersed with rocky outcrops and hidden coves. The nearest seaside town is San Juan de los Terreros where the beaches are excellent for families as they are gently shelving. The town itself has good amenities and has recently begun upgrading its beachfront, including a brand new esplanade with wooden beach-side bars and restaurants.

The coastline is unspoilt as large-scale and high-rise development is not permitted on the frontline, and no building can rise above 3 storeys. This means that while there are plenty of tourist amenities, the area retains an authentic Spanish feel, with no shortage of friendly local bars and restaurants to while away a pleasant few hours.

The ancient Moorish hill town of Mojacar is a short drive away. Popular with writers and artists, this settlement is a warren of narrow streets lined with shops, boutiques, restaurants and small galleries. It is an attractive place to visit and has a weekly market, as well as colourful annual fiestas, the best known of which is “Moros y Cristianos” in June. 2km away on the coast is Mojacar Playa, stretching for 9km along sandy beaches, with bars and restaurants to suit every taste. Just east of Mojacar Playa is Garrucha, a former fishing village and later a port where the metal from nearby mines was shipped, where there is now a large marina.

Elsewhere in the region there is much to explore, including a large national park, Cabo de Gata-Nijar, a marine and land eco-system of great significance. It covers a huge area south west of Mojacar. Also in the region are several systems of caves and an attraction called Mini Hollywood, which celebrates the numerous “spaghetti westerns” that were filmed in the region.

INFRASTRUCTURE

FLIGHTS:The south east of Spain is extremely well-served for airports. Almería is the nearest airport to Mundo Aguilón, and is 45 minutes drive away. Other airports in the area include Murcia (90 minute drive), Alicante (2 hours) and Malaga (2 hours). There are also plans to build a second runway at Murcia Airport to accommodate the demands of tourism.All the budget airlines fly from all major airports in the UK direct to one of these airports, removing the need for a time-consuming transfer in London.British Airways, British Midland and Iberia also fly to the region from London airports. Flight time on average is 21⁄2 hours and fares start from £40 return.

ROADS:Almería region is well served for roads and has had much funding to improve and upgrade the network. The latest project is the upgrading of a section of road to fast motorway linking this area to Valencia, Barcelona and France. This is due to be completed mid-2008.

CAR HIRE:Spain has an efficient high-speed rail network, but outside of the main cities, rail services are minimal. It would therefore be advisable to hire a car on arrival. All the major car hire companies are represented in Spain and you can expect to pay around €240 for a week’s hire of a family-size car.


location continued...Road networks in the area are good, with a stretch of dual carriageway currently being upgraded to motorway standard. It will link the region with the motorway network to Valencia and Barcelona, and on into France. When this road is completed (mid-2008) it will slash journey times to these fabulous cities. Madrid is currently around a 4 hour drive away. The city of Almería, the capital of the region, is an hour’s drive and is a bustling port,

with many historic buildings and a charming old town. It has galleries, museums and good shopping facilities. It is even possible to take a ferry from here to North Africa.

Almería is well provided with golf courses – Desert Springs, Playa del Este and Marina Golf are all within an hour of Mundo Aguilón. These offer challenges to all levels of golfer and provide variety for the golf aficionado.

Santa Ana

MUNDO AGUILóN Location

San Juan de los Terreros Seaside town with bars, restaurants etc - 2km

Mojacar Pueblo and Playa Hill town with shops, boutiques and restaurants, and beaches – 20 minute drive

Almería City 1 hour by car

Madrid 4 hours by car

Almería Airport 45 minute drive

Murcia Airport 90 minutes by car

Malaga Airport 2 hours by car

Alicante Airport 2 hours by car

San Juan de los Terreros •

• Los Jurados • Puerto de los Peines

MUNDO AGUILóN

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about the develoPmentMundo Aguilón is a high-end golf development, which aims to be the best in the region. The 18-hole golf course was started 6 months ago and has already been landscaped.The apartment buildings are arranged around the course, offering views of the greens and fairways, as well as sea and mountain vistas. The basic infrastructure of the site is well underway, roads have been laid and surfaced, streetlights installed and a long cycle-circuit already completed which skirts the whole site.

The development as a whole will benefit from the amenities provided for the golfer. The main attraction is the course itself, and residents will be offered preferential rates to use all facilities, including the clubhouse, the golfing school and shop. Each section of the development will benefit from a large communal swimming pool, shops, bars and restaurants. There will also be other sporting facilities, including tennis courts and fitness centre. At a later phase of the development a hotel and spa will be built. Owing to its proximity to the foot of the Sierra del Aguilón, it is easy to enjoy hiking in the hills, which offer great views of the surrounding area. You may even spot an elusive eagle – these hills are named Mountains of the Eagle in Spanish.

The section of the Mundo Aguilón development we are offering is called Santa Ana. It will consist of 238 apartments in total, with the great advantage that all of these will be sea-facing, providing great views. There will be ninety 2- and 3-bedroom apartments available to Ready2invest customers, and these will be finished to a high standard. They will have underground parking, garden areas and the whole site benefits from year-round security surveillance. The apartments will be arranged in terraced “stepped” design, with each enjoying their own private outside area.

about the develoPerThe Mundo Aguilón development is underway with the backing of Anida, the property development arm of BBVA, one of Spain’s largest banks.

The architect for the Santa Ana section of Mundo Aguilón is a firm called Arquivir, a well-established Madrid-based company who have enormous experience in all kinds of building projects, all over Spain. The Mundo Aguilón design is headed by Antonio Arrechea Fúster, a senior architect in the practice. You can visit their website at www.arquivir.com where you can view their extensive track record, which includes residential and tourist units, apartments and schemes all over Spain, in addition to civic and municipal work for a variety of public bodies as well as commercial projects, hotels, schools and libraries.

The project manager for Santa Ana is Barry Haslam-Walker, a quantity surveyor with 20 years of project management experience. His company’s website (www.novopro.com) gives full details of their work and experience. He has extensive experience of the Spanish construction market sector together with international experience on a wide range of development/construction projects throughout Europe, North/South America and the Middle East.

Santa Ana

tier 1:Tier 2:

First 30 units

Tier 3:

Next 30 units

Remaining

30 units

unit Purchase Price € 276,400 € 296,400 € 316,400

cost per m2 € 2,764 € 2,964 € 3,164

first 15 units per tier:15% deposit

€ 41,460 € 44,460 € 47,460

remaining 15 units per tier: 20% deposit

€ 55,280 € 59,280 € 63,280


Santa Ana Siteplan

Mundo Aguilón

The area marked in red indicates the development plot. The coast lies 2km south east of the plot.

View of the Santa Ana plot.

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Price structurinGThe Apartment purchase prices available at Santa Ana will broken down into three tiers.

The first 30 apartments will be available at the first tier prices. Once these are sold the price will increase to the second tier price, where a further 30 apartments are available. Once these are sold the price will again increase to the third tier prices.

Please note that within each tier a 15% deposit is required for the first 15 apartments, with 85% due at completion. The second 15 apartments per tier will require a 20% deposit with the remaining 80% due at completion. This is not an uncommon price structuring in Spain and gives advantages to those investors prepared to act fastest.


100m2 apartment

The above image shows a conceptual design for the Santa Cristina plot belonging to BBVA ANIDA, elsewhere in the Mundo Aguilón, designed by Antonio Arrechea Fúster.

Floorplans

Santa Ana


FinancialsUNDER MARKET VALUE

santa anaPlaya macenas-

los Patios 1 desert springs2 lorca Golf resort3 marina Golf4 valle del este

Golf resort5

Building type Apartment Apartment Apartment Apartment Apartment Apartment

Bedrooms 2 2 2 2 2 2

Price € 296,400 € 422,950 € 279,000 € 294,496 € 243,480 € 210,000

Living area (m2) 100 100 100 100 65 63

Price per m2 € 2,764 € 4,230 € 2,790 € 2,945 € 3,746 € 3,333

LocationSan Juan de los Terreros

Mojacar Vera Lorca Mojacar Vera

Sea view Yes Yes No No Yes Yes

Swimming pool Yes Yes Yes Yes Yes Yes

Golf Yes Yes Yes Yes Yes Yes

Private parking Yes Yes Yes Yes Yes Yes

An apartment in the Santa Ana development is a great investment because of the combination of two factors: a great discount (24% to market value) and the fact that only a 15% deposit is required. As you will see in the profit forecast on page 17, this combination could produce a return on investment of 680% within 5 years at just 5% capital growth per year.

Finding a suitable development and negotiating a large discount to market value is not an easy task in the emerging markets of Eastern Europe. In Spain it is twice as difficult, especially on golf developments with direct sea views. Demand for this type of property is still strong, the market in Spain is mature and developers have access to excellent financing options, meaning that the need

to raise finance through early, discounted sales is diminished.

However, as with all markets, individual situations and conditions sometimes occur where a developer is happy to sell some of his property quickly and at a large discount. If he has a high risk approach, this could be in order to maximise his land buying and building ability on multiple sites. If the developer has a low risk approach, he may wish to cover his downside by securing steadfast financing through selling off-plan contracts. At Santa Ana the latter is true.

To verify the discount on offer from the developer, we can compare prices and values of other developments of a similar nature. The following table shows a selection of our comparables.

Ready2invest sold over 90 apartments at the Playa Macenas golf development as off-plan opportunities back in 2004. At the time we secured prices for only €2,600 per m2 compared to the €4,000 per m2 plus that other properties on the development are selling for now!

1. http://www.imagineAlmería.com/playa_macenas/apartment__los_patios_2_bedroom2. http://www.imagineAlmería.com/desert_springs/apartment_2_bedroom3. http://www.imagineAlmería.com/lorca_resort_golf_and_spa/apartment_2_bedrooms4. http://www.rightmove.co.uk/viewdetails-4469241.rsp?pa_n=3&tr_t=buy&chnl=overseas5. http://www.inspain.tv/AllProperties/__property63522_4.html

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When comparing property prices to determine market value it is essential to compare like for like – compare apples with apples. The previous comparables show a selection of golf course apartments on the Costa Almería closest to Mundo Aguilón. However, sometimes factors exist over and above simply the category of a property that will affect its value. In the case of Spain, sea views play a major role in determining property value and conservatively add a premium of over 20% to property prices. This should be factored in when calculating the average market value by adjusting the price per m2 of properties without sea views, as represented in the table below:

At only €2,764 per m2, Santa Ana apartments are 24% below the average market value of €3,638 per m2. A discount of this magnitude locks in considerable instant equity. Buying at discount also covers your downside – the market would have to drop by the value of your discount before you would begin to lose money, and to help ensure a quick sale, you also have the luxury of being able to pass on part of your discount when you come to sell.

calculating the discount Price per m2

Playa Macenas - Los Patios € 4,230

Desert Springs € 3,348*

Lorca Golf Resort € 3,534*

Marina Golf € 3,746

Valle del Este Golf Resort € 3,333

Average price: € 3,638

santa ana € 2,764

discount 24%

Financials

* Conservative 20% adjustment due to non-sea views

A 2-bed 100m2 apartment normally worth €363,800 costs only €276,400. That’s a saving of €92,400!

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moJacar

roQuetas

ALMERIA GOLF COURSES

S O L DS O L D


RENTAL COMPARABLESThe rental market on the Costa Almería is strong. With Spain remaining the number 1 destination for UK holiday-makers this comes as no surprise. There are a number of property management and rental companies in the area that can manage both the property and the rentals for investors. The resort managers have also offered this service and we are looking at the possibility of organising a rental pool for Ready2invest investors. Regardless of this we will put you in touch with rental companies closer to the time of completion.

As with the price comparables, to get a feel for the likely rental income, we can compare the current rack rates of other golf course apartments in the region:

With 320 days sunshine a year the Spanish season is long. The high season stretches from mid-June to mid-September with two weeks at Christmas and two weeks at Easter. Occupancy over these periods is always very high and rental rates are reflectively increased. The weeks either side of the high seasons also tend to do better than the remainder of the year, which does not benefit from such high occupancy or rates.

The following table represents the rental yield that could be generated for a 2-bed, 100m2 apartment at Santa Ana, taking into account both the high season with high occupancy and the low season with a conservative, lower occupancy.

season occupancy total weeks weekly rate total income yield

High Season 100% 16 € 656 € 10,500 3.80%

Low Season 40% 14.4 € 211 € 3,038 1.10%

combined season 30.4 € 13,538 4.90%

resort name typeweekly

rateseason

Valle del Este 2-bed apartment € 525 high

La Torre golf development

2-bed apartment € 825 high

La Torre golf development

2-bed apartment € 675 high

Valle del Este 2-bed apartment € 600 high

high season average

€ 656

Marina Golf 2-bed apartment € 203 low

Valle del Este 2-bed apartment € 220 low

low season

average€ 212

6. http://www.wttc.org/2006TSA/2006individual%20pages/spain.htm 7. http://www.holidaylettings.co.uk/rentals/Vera/154408. http://www.holidaylettings.co.uk/rentals/La-Torre-Golf-Resort/15297 9. http://www.holidaylettings.co.uk/rentals/La-Torre-Golf-Resort/13631 10. http://www.holidaylettings.co.uk/rentals/Vera/12751 11. http://www.mojacarestates.com/longterm-lets/

Financials


DEAL STRUCTURING15% of the property purchase price is due at reservation and 85% at completion. To maximise leverage and returns, ideally this 85% would be covered with a mortgage. This would also mean that no extra capital need be contributed by investors at completion. Unfortunately current mortgage lenders in Spain do not offer interest-only mortgages at a 85% loan-to-value. An 80% LTV is achievable but 70% LTV is more common and easily accessible. So as investors how can we make this work?

The answer lies in the discount. Mortgage lenders in Spain are prepared to lend on the valuation amount of a property, not just the purchase value. This means that as the development nears completion, the lending bank will value the property at its market value at the time and will then lend against it.

In other words a 70% LTV mortgage on a bank valuation of the property at completion should cover the remaining 85% due of the purchase price:

Purchase value € 276,400

85% due at completion: € 234,940

Market value at completion: € 363,823

70% LTV available at completion: € 254,676

The €254,676 mortgage that can be raised on the market value of the property would be more than enough to cover the €234,940 due on the purchase.

Using a 100m2 2-bed apartment costing €276,400 as an example the figures could look like this:

€ 400,000

€ 350,000

€ 300,000

€ 250,000

€ 200,000

€ 150,000

€ 100,000

€ 50,000

€ 0Purchase Value Market Value

15% Equity

85%LTV

70%LTV

Financials

30% Equity


SENSITIVITY ANALYSISThere are two key variables upon which the success of this strategy depends. They are:

• Calculated market value • Achievable loan-to-value mortgage

The following tables represent how much ‘room for error’ there is within our calculations.

If the market value was 10% less than our calculated value, then with a 70% LTV mortgage the required amount could still be raised.

A 65% LTV mortgage on our calculated market price of €363,823 would also be enough to cover the remainder due at completion.

CONTINGENCY Investors should be aware that any market can decrease as well as increase and that external influences can sometimes

greatly affect the market value of property. So although at the time of publication we believe to the best of our knowledge that the information these figures represent is correct, we recommend that all investors intending to purchase with a mortgage have a contingency plan to cover any extra equity unexpectedly required at a later stage.

The view from the Santa Ana plot facing west

Financials

Sensitivity to Market Price

mortgage required

calculated market value

break even market value

sensitivity

€ 234,940 € 363,823 € 335,629 7.7%

Sensitivity to LTV

mortgage required

targeted ltvbreak even

ltvsensitivity

€ 234,940 70% 65% LTV 7.7%

View from the left side of the land looking north west.


In any deal, an investor wants a property to stay cash positive. This means that the rental income should cover the mortgage payments. In this way the associated costs of using a mortgage are not incurred by the investor and the leveraging effect that it provides means the capital growth makes your equity work a lot harder.

If the aforementioned mortgage strategy is adopted for a Santa Ana purchase, then 85% of the purchase price would be taken as mortgage. As the percentage of purchase value borrowed increases, the likelihood of covering the interest payments with rental yield decreases. However, there is strong rental demand for golf property in Almería and the added bonus of sea views means higher rental rates, and therefore the higher rental yield can be obtained – as demonstrated on page 13.

The next table shows a breakdown of rental income versus mortgage payments for a 100m2 2-bed apartment costing €276,400. We have conservatively anticipated that 20% of rental income will go towards letting and maintenance fees.

Rental income for a Santa Ana 2-bed apartment with a 70% LTV mortgage should cover the mortgage payments. As always, we prefer to stay conservative with the expected rental income. We have not incorporated the option that the rental rates might increase over

the three years that it will take for the development to complete.

This investment is not about yields or generating income. It is about the massive capital appreciation, achievable through the generous discount, steady growth and effective leveraging, as covered by the next section.

Property price € 276,400

Borrowings required € 234,940

Interest rate 4%

Annual payment € 9,398

Expected annual rental income € 13,538

Costs (20%) € 2,708

Net income € 10,831

STAYING IN THE BLACK

Financials


The south coast of Spain in general has already experienced massive growth and it can in no way be considered an emerging market like those of Eastern Europe. Consequently the current capital growth remains steady but low in comparison to some of Europe’s younger markets. However, undiscovered and underdeveloped pockets do still exist along the coast where there remains room for growth. The San Juan de los Terreros area is one such place.

The little sea-side village has remained very authentic and large development there has been restricted. This is partly due to lack of transport infrastructure (a new motorway expected to be completed in 18 months will vastly improve this) and also because the territory surrounding the area is protected national park land. Additionally, the local council has kept a vigilant

and untainted hand on issuing building licences and rezoning agricultural land. In fact it took the original owner of the Mundo Aguilón land 14 years to get the land rezoned from farm land to development land before he sold it.

Current coastal capital growth rates in Costa Almería are around 7-8%1 p.a. The lack of current and future supply, and the ever higher demand that exists for golf properties with sea views, indicate that the capital growth for the Santa Ana development may be slightly higher than this.

The following table represents how growth in the market will increase the property value of a €276,400 purchase, assuming a 24% discount to market value at variable growth rates.

PROFIT FORECAST

Financials

Forecast growth excluding transaction costs and tax over 5 years, assuming variable rates of capital growth per annum and assuming a €276,400 purchase.

For cash buyers this would translate into the following profit:

Forecasted capital growth

capital growth

Purchase pricePredicted

market value

Property price increase from capital growth

Year 1 Year 2 Year 3 Year 4 Year 5

5% € 276,400 € 363,823 € 382,014 € 401,114 € 421,170 € 442,229 € 464,340

10% € 276,400 € 363,823 € 400,205 € 440,225 € 484,248 € 532,673 € 585,940

15% € 276,400 € 363,823 € 418,396 € 481,155 € 553,329 € 636,328 € 731,777

Forecast ROI excluding transaction costs and tax over 5 years, assuming variable rates of capital growth per annum and assuming a €276,400 purchase.

Forecasted return on purchase price

capital growth

Purchase pricePredicted

market value

return on purchase price for cash buyers


5% € 276,400 € 363,823 38% 45% 52% 60% 68%

10% € 276,400 € 363,823 45% 59% 75% 93% 112%

15% € 276,400 € 363,823 51% 74% 100% 130% 165%

1. http://www.50connect.co.uk/index.asp?main=http%3A//www.50connect.co.uk/50c/articlepages/retirement_index.asp%3Fsc%3Doverseasretirement%26aID%3D14928


RETURN ON INVESTMENT VIA MORTGAGE

Forecasted equity growth excluding transaction costs, tax and mortgage payments over 5 years, assuming variable rates of capital growth per annum and assuming a €276,400 purchase with 90% borrowing.

Translated into profit, the magnifying effect of leveraging is clear. The return on investment available to investors who purchase 85% of their property with a mortgage is greater than those who purchase with cash.

Our four principles of successful property investing are: buying below market value; capital growth; adding value and effective structuring. We usually recommend that an investment benefit from at least two of these principles to really maximise returns. Santa Ana ticks 3 of the 4 boxes. It benefits from a great discount to market price, and value is added from the fact that it sits on a golf course overlooking the sea. Although the expected capital growth is average, it is compounded by the great deal-structuring available. This means the equity you put into the property works extremely hard.

Financials

With such a substantial discount to market value and with great leveraging available, if only 5% growth per annum is achieved, then you could see a Return on Investment of over 453% in just 5 years.

Forecasted Equity Stake Increase If bought with mortgage

capitalGrowth

15% equity in-vested

on purchase

equity value dueto 24% discount

equity value from capital growth


5% € 41,460 € 128,883 € 147,074 € 166,174 € 186,230 € 207,289 € 229,400

10% € 41,460 € 128,883 € 165,265 € 205,285 € 249,308 € 297,733 € 351,000

15% € 41,460 € 128,883 € 183,456 € 246,215 € 318,389 € 401,388 € 496,837

Forecasted Return on Investment if bought with mortgage

cap Growth year 0 year 1 year 2 year 3 year 4 year 5

5% 211% 255% 301% 349% 400% 453%

10% 211% 299% 395% 501% 618% 747%

15% 211% 342% 494% 668% 868% 1098%


EXIT STRATEGYAs previously mentioned, the strength of a Santa Ana purchase lies not in the yield but in the rapid equity growth. That said, the leveraging effect of a mortgage will always magnify the capital growth, so a number of exit strategies could be adopted.

PAYMENT TIMETABLEWe present below a broad payment timetable for a generic purchase.

Payment amount timing

Reservation £2,500 +16% VAT (£2,900) Immediately 1

Deposit 15% / 20% of purchase price On contract (21 days after reservation)2

IVA on deposit3 7% on first deposit On contract (21 days after reservation)3

Legal fees 50% of legal fees On contract (21 days after reservation)4

Final payment 85% / 80% of property value On completion5

IVA on final payment 7% on remaining 85% / 80% On completion

Legal fees Remaining 50% of legal fees On completion

Additional closing costs Approximately 2% of purchase price On completion6

ongoing costs

Management, maintenance and rental fees

Approximately 20% of rental income Annually

You can see from the table above that additional property purchase costs in Spain usually equates to approximately 10% of the purchase value.

Financials

1. short term – sell before comPletionThe majority of the capital appreciation for this deal is made over the initial period. With only 15% down, the 24% discount to market value creates an immediate three-fold growth in equity. This creates an ideal situation for investors looking for a ‘quick flip’ – to potentially sell their contract before completion. Part of the discount can be passed on to help initiate a quick onwards sale and there is also the possibility of never needing to take a mortgage out on the property yourself. That said, this type of strategy is normally considered high risk – if you fail to sell the property on to another investor then you will have to cover the final payment yourself. We recommend that any investor looking to adopt this strategy has a contingency plan to be able to cover the mortgage payments should the property not sell before completion.

2. short term – sell after comPletionThe advantage of waiting to sell after completion is that the majority of potential buyers in Spain are lifestyle buyers as opposed to strict investors. In fact, 80% of coastal apartment buyers are still Spanish families looking for holiday homes7. This is your primary resale market. Therefore a completed,

high standard ‘bricks and mortar’ property on a golf course will always be a more attractive option to this type of buyer than an off-plan opportunity.

3. mid to lonG term Many overseas buyers/investors often want to utilise their properties both for investments and as holiday getaways. Although the rental yield is not expected to be very high, it should nevertheless generate enough income to cover the mortgage payments. Keeping the property long term should not impact negatively on investor’s cash flow. The expected capital growth in the region is also steady and sustainable and its effect on equity is heavily leveraged via the mortgage. Consequently, a longer term strategy could be maintained indefinitely with the invested equity in the property working very hard for you as an investor.

1. Payable to Ready2invest in GBP2. Payable to developer in euros3. IVA is the Spanish equivalent to VAT and is due on each payment4. Spanish legal fees are usually 1% of purchase price5. Payable to developer in euros6. Including: notary, registry, and mortgage costs other documents7. http://www.siprograms.com


Tax

1. Personal income tax (irPf / inrn)If you’re resident in Spain, you will pay income tax on your total worldwide income (IRPF, personal income tax) from employment or asset gains or losses. This varies between 15-45%, depending on the income.

If you don’t reside in Spain but earn some income in the country, you pay 25% tax on the income you earn in Spain (IRNR, tax on the income of a non-resident).

In both cases you need to calculate your own tax liability and apply for the tax returns from the relevant local authorities. However, double taxation treaties exist between Spain and other members of the EU, so you won’t be taxed twice on the same income3.

2. wealth taxIf you reside in Spain for tax purposes, you need to pay tax on your worldwide net wealth. Charged at progressive rates ranging between 0.2-2.5%, you are required to calculate your own tax liability, complete the tax return and pay the tax during a specified period.

If you’re a non-resident, you are required to pay tax on your assets located in Spain, irrespective of the value of your net wealth4.

3. inheritance tax / Gift taxIn Spain you pay tax on acquisition of assets through inheritance and legacy and other monies. The inheritor does not pay tax on the whole estate but on the actual inheritance. This tax is progressive, ranging between 7-35% depending on the relationship to the deceased and on the inheritor’s personal circumstances, and is calculated differently according to the region5. In case of donations, the donator is required to pay the tax6.

To avoid any unnecessary, and potentially very expensive complications later, it is strongly advised that you arrange a Spanish will at the same time as buying your property in Spain.

4. vat (value added tax)There are three different VAT rates in Spain - the general rate of 16%, the reduced rate of 7% and the second reduced rate of 4%. The VAT of 7% is added to accommodation or passenger transport. The 4% VAT is in use when purchasing food items, books, newspapers, medicines and so forth7.

As a property owner in Spain, whether you are a resident or a non-resident, you will have to pay tax. You are considered a resident if you spend more than 183 days per year in the country or if the majority of your activities with

economic worth occur in Spain1.

The Spanish fiscal system appears at first glance to be very tax-heavy and complex. In 2007 the government will be looking into simplifying and reducing many of the taxes2.

We have compiled a brief guide to give you an idea of what you can currently expect from this system. However, we emphasise that this is for guidance only and we strongly advise you to seek professional advice from a tax specialist if you intend to invest in Spain.


5. caPital transfers / Gains taxThis tax is payable on any asset transfers, corporate transactions and documented legal acts (notarial and administrative documents) at the moment of transfer or sale8. This applies to property sales.

For residents, the system is more favourable – the capital gains tax is charged at 15% of the net profit. If you are over 65 and have been a resident in the property for 3 years, no capital gains tax is payable. This is why Spain is such a highly desirable location for retirement.

For non-residents, the system is again different. If the asset is held for a year or less, the gains will be taxed in the income tax. The basic capital gains tax stands at 35%9 and if you have a buy-to-let property, 25% tax is payable on the gross rent received10.

However, again there is a double taxation regime in place between Spain and the UK so you will not be taxed twice.

6. local taxesThese taxes include the tax on immovable property (Impuesto sobre Bienes Inmuebles) at around 0.2% of the ‘national rental value’; tax on economic activities (Impuesto sobre Actividades Económicas) and tax on vehicles (Impuesto sobre Construcciones, Instalaciones y Obras). Construction, installation and works taxes and tax on the increase in the value of urban land (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana) may also be charged11.

7. corPorate taxCurrently the Spanish corporate tax stands at a high 35%. However, the country attracts multinational companies despite the high rate because there are tax breaks for co-ordination centres in certain areas. These centres are the basis for a variety of corporate entities that then enjoy tax breaks12.

1. http://ec.europa.eu/youreurope/nav/en/citizens/working/taxation/es/index_en.html2. http://www.lowtax.net/lowtax/html/offon/spain/spnhom.html3. http://ec.europa.eu/youreurope/nav/en/citizens/working/taxation/es/index_en.html4. Ibid 5. http://www.spainlawyer.com/guialegal/guialegal.cfm?IDCAPITULO=110300006. Ibid7. http://ec.europa.eu/youreurope/nav/en/citizens/working/taxation/es/index_en.html8. http://www.graydon-associates.com/taxes.htm9. http://www.graydon-associates.com/faqs.htm#six10. Ibid.11. http://ec.europa.eu/youreurope/nav/en/citizens/working/taxation/es/index_en.html12. http://www.lowtax.net/lowtax/html/offon/spain/spnhom.html

Tax


Mortgages

Securing a mortgage in Spain is a relatively straightforward process as the mortgages are available in euros. The majority of Spanish mortgages are full status and the different types of mortgages available are interest-only and repayment mortgages with either fixed or variable interest rates. These rates will be reviewed yearly in accordance with the rates provided by the European Central Bank. Most Spanish mortgages, whilst linked to a percentage of valuation, cannot exceed the price stated in the title deeds.

Although we welcome you to use a bank of your choice in acquiring a mortgage in Spain, we recommend a Spanish bank called Bancaja. We have negotiated with them to find the best possible mortgage deals.

It will be possible to secure a mortgage through Bancaja with up to 80% loan to value, although it is highly likely that in Santa Ana only 70% LTV will be required. Interest rates are around 4.5%, depending on the current Euribor rates, and the maximum loan period is 40 years, depending on the age of the borrower; the upper age limit is 75 years old.

There is also a possibility to take an interest-only mortgage from Bancaja for a maximum of 5 years. This

is great news for investors looking to get in and out of the market quickly.

Along with your mortgage application, Bancaja will require hard copies of the following documents:

1. Proof of partial payments for the house (from the Bancaja account) 2. Copy of contract 3. Copies of bank statements 4. Most recent P60 statement 5. Last two salary slips 6. Profits and losses (confirmed by accountants) if self-employed 7. Copy of tax return form (from Inland Revenue) if self-employed

If you choose not to use Bancaja for your mortgage, the application requirements and paperwork may vary from those listed above. Further, the details of the mortgage itself may also vary. It should therefore be noted that this page is for guidance only and that you should acquire the accurate list of details from the bank you choose to use for your mortgage.


Lawyers

Lawyers representing Ready2invest clients in any foreign country must be able to accomplish the following:

• Act as Power of Attorney for the investor• Guide through the conveyancing process until completion• Provide a good level of service especially around busy times, such as completion, keeping the investor up to date with the various stages in the process• Provide an English-speaking key contact who can respond to enquiries within 48 hours by email or phone• Provide English translations of any important contracts • Include the cost of all notarisation, apostils, postage, tax registration and other legal paperwork that will need to be done locally• Provide receipts for all disbursements or out of hand expenses

With these key points in mind, we chose a local Spanish firm Jausas, and the partner Sergio Giménez Binder, as by far the best firm to represent our investors. Jausas have offices in Madrid and Barcelona and they have a solid track record spanning over 40 years. They specialise in various areas, including real estate law and town planning. Their philosophy is to provide innovative, internationally orientated and business-minded service, and therefore they can easily provide services in English. You can visit their website at www.jausaslegal.com.

We have worked with Sergio for some time and find him an extremely trustworthy and experienced lawyer. He also speaks fluent English and is always ready to provide a high level of service.

The lawyer’s fees will be approximately 1% of the purchase price. The functions these fees covers are:

1. Land Registry 2. Tax Department issues 3. Legal advice 4. Power of attorney 5. Notary – final deed 6. Registrations

Please note that this is not an exhaustive list. For a full list and clarification on each point, please contact Jausas direct. As with all our developments, we ask that the investor pay 50% of the legal fees upfront and 50% at completion. This “aligns” the lawyer with the investor and ensures a high level of representation is maintained throughout the life of the investment.

We believe this represents tremendous value for money, as the service they offer is wide ranging and actually exceeds our criteria in many ways.

If you have any questions for Sergio Giménez Binder, please drop him an e-mail at: [email protected] or call him on 00 34 93 415 00 88.


Currency

MONEYCORPMoneycorp, the UK’s leading foreign exchange company, can help you achieve the best exchange rates, making your money go further. They have been trading foreign currencies since 1979 and are the only foreign exchange company in the UK to have been certified to ISO 9000 Quality Assurance.

In addition, you can take advantage of the following benefits:

• No commission charges or receiving bank fees.• Fast, efficient worldwide transfers.• A dedicated dealer to guide you throughout your currency transaction(s).• Extended office opening hours Monday - Friday 7:30am - 10:30pm and 10:00am - 4:00pm Saturday.

Moneycorp offers a very straightforward, efficient and cost-effective service. Exchanging and transferring money is an easy three-step process:

1. Open a trading facility - you can register online by visiting the Moneycorp website at www.moneycorp.com or calling their London office on +44 (0)20 7589 30002. Book a transaction - once a trading facility has been set up, a dealer will call you and discuss your individual requirements with you. Rates are booked with your dealer over the telephone3. Transfer your funds - dependent on the date you require your currency

Our contact, Ben Nicholson, is always available to take your calls at their London office and can be reached on +44 (0)20 7823 7500

COMPLETE CURRENCYThis company offers a range of foreign exchange products to ensure its clients maximise their potential within the foreign exchange market, taking advantage of exchange rate fluctuations and safeguarding their investment. The company will provide fast money transfer with a full variety of foreign exchange products with no hidden charges.

The directors of Complete Currency have over 30 years of currency trading and money transfer experience at your disposal, and they will see to it that you get the best exchange rate.

Call our contact Steve Rowe on +44 (0) 207 709 2060 for a quick consultation, mentioning Ready2invest, between 8:30am and 8:00pm or take a look online at www.completecurrency.co.uk.

CURRENCY EXCHANGESmall differences in exchange rates make a big difference to the end amount you pay, and specialist companies compare extremely favourably to the High Street banks. Ready2invest currently works with Moneycorp and Complete Currency, currency conversion companies in London that offer an extremely personal service and excellent rates.


The Ready2invest Fee

The Ready2invest fee is £2,500 +16% VAT (£2,900 in total) payable for every individual reservation made on each of our developments. This amount is due immediately as a non-refundable reservation fee, should you choose to purchase a property through Ready2invest.

What our fee covers:

findinG the deal• Finding the deals through our network of international finders• Personally visiting all developments for face to face meetings with key personnel and viewing the sites• Negotiating the discount using R2i reputation and buying power• Financially structuring the deal for maximum returns• Completing extensive research and due diligence on: • Title • Planning • Legals • Country and town • The development • The developer• Securing protection for your investment• Sourcing reputable local English-speaking lawyers in every country wherever possible• Negotiating favourable fee structure with lawyers

what we don’t do

• We don’t arrange mortgages• We don’t convert currency

• We don’t manage finished property• We don’t advise on tax

serviceOur Investor Relations staff help you through your entire investing process. Their roles incorporate:• Answering any questions you may have during your investment process• Guiding you through the contract and payment process• Helping arrange a Power of Attorney if necessary• Help organise and liaise with mortgage companies where necessary• Arranging site visits (1 week’s notice needed)• Help source and organise furniture packs where appropriate• Help source local letting agents where appropriate• Update you on the progress of your investment• Provide a friendly ear for any worries or queries you may have


“I have been impressed by the high standard of Ready2invest’s customer service, and even higher quality of property development opportunities”

John Maitland, Sutton -Ready2invest customer

Views from and of R2i development sites in Montenegro and Croatia

About Ready2invest

When Jonty and Alise Crossick sold their retail business and moved into property in August 2003, they invested just £300,000. Twelve months later they were sitting on a property portfolio worth over £7 million with equity of over £3.5 million.

In October 2003, Jonty and Alise set up Ready2invest Limited to share their property strategy with others and deliver a professional investment brokering solution in a fragmented market. The company has become well known for its thorough research and due diligence, and for negotiating and engineering exceptional deals in the marketplace.

“We are, first and foremost, investors. We think like investors, we behave like investors and we personally invest in the developments we launch. Ready2invest grew out of a need to group together with other like-minded investors in order to create the buying power to get great deals.”

Over the past two years, the company has built up a customer base of over 20,000 investors, and has achieved over €300 million of off-plan sales in many countries across Europe, each with its own administrative and legal procedures.

“Our job is to build trust with the developer and trust with you. If you know that the properties we offer are well researched, superbly priced, judiciously selected and located in prime spots, then we believe you will buy through us. If the developer is confident that we can sell a lot of properties quickly and efficiently, thereby taking some of the pain out of his transaction process, we can negotiate unbeatable deals with him. The result? You, the investor, wins. The developer wins. And we win.”


To reserve a Santa Ana apartment in the Mundo Aguilón Golf Resort without delay, please complete and sign the Reservation Form and return it to us with a non-refundable reservation cheque for £2,500 +16% VAT (£2,900). Reservation cheques should be made payable to Ready2invest (Santa Ana). Please send a separate cheque for £2,900 for every apartment you wish to reserve. If you are as excited as we are about investing in Spain, then call us now on +44 (0)1273 627 900 and speak to one of our property consultants.

Next Steps

Ready2invest (Santa Ana) LimitedOlivier House

18 Marine Parade,Brighton,BN2 1TL


Notes

!


We Need Your FeedbackReady2invest is dedicated to offering sound investments and providing all the necessary support throughout the sales process.

To ensure that our service remains the best it can be we need your valuable feedback. We would be most grateful if you could answer the questions below and return by either emailing to [email protected], faxing to 01273 685 048 or posting to:

NAME:

PROFESSION:

CUSTOMER SERVICE

Please circle your answer where applicable

1. Where did you hear about R2i?

2. Initially, what made you choose to enquire with us?

3. On first contacting us, what was your impression?

Excellent / Good / Average / Poor

4. Did you feel confident about further pursuing your enquiry with R2i?

Yes / At a later date / Not at all

Why/ Why not?

5. Throughout the process, was your consultant:

• Prompt when responding to queries? Yes / Reasonably / Not at all • Knowledgeable? Yes / Reasonably / Not at all• Polite and professional? Yes / Reasonably / Not at all

6. Did you feel that your consultant cared about your individual needs?

Yes / Reasonably / Not at all

7. Would you consider investing with us again?

Yes / No / Maybe

8. Would you feel happy about recommending a friend to invest with us?

Yes / No / Maybe

INVESTMENT ENQUIRY:

SALES CONSULTANT:

Customer Feedback Ready2invest Ltd Olivier House18 Marine ParadeBrighton BN2 1TL

!


Your Feedback continued...

THE BROCHURE 1. What was your overall impression of the brochure?

Excellent / Good / Average / Poor

2. Did the brochure tell you in detail what you needed to know? If not, what would you like more information on?

YesNo

3. Was the format easy to navigate?

YesNo

4. Was the brochure the right length for your needs?

Yes / Too long / Too short

5. Did you find the style of writing easy to read?

YesNo

6. Are there any sections/features that you would like us to add?

NoYes

7. Did you like the brochure design?

Yes No

8. Finally, what other countries or areas are you interested in?


!

Please send this form to ready2invest (santa ana) ltd, olivier house, 18 marine Parade, brighton, bn2 1tl, along with a cheque for £2,500 +16% vat (per apartment) made payable to ready2invest (santa ana).

first individual

TITLE

FIRST NAME

SURNAME

ADDRESS

POSTCODE

EMAIL

TEL

MOBILE

FAX

PASSPORT NUMBER

DATE OF BIRTH / /

PLEASE COMPLETE IN BLOCK CAPITALSR2I RESERVATION FORM

SANTA ANA, ALMERíA, SPAIN

Authorised Individual Signature: DATE:

or

First Individual Signature: DATE:

Second Individual Signature: DATE:

second individual

TITLE

FIRST NAME

SURNAME

ADDRESS

POSTCODE

EMAIL

TEL

MOBILE

FAX

PASSPORT NUMBER

DATE OF BIRTH / /

corPorate Purchaser

COMPANY NAME:

COMPANY NUMBER:

REGISTRATION OFFICE:

AUTHORISING INDIVIDUAL:

EMAIL:

TEL:

MOBILE:

FAX:

Please print your details clearly as they appear on your passport.

Where did you hear about us?

i/we confirm the details specified in this reservation form and agree to terms and conditions printed on the reverse.

i/we confirm we have reserved this apartment with full understanding of the risks involved in purchasing overseas property.

2-BED APARTMENT

HOW MANY?

Version r2i/sPA/sAn/2.0 3/10/07

1. R2i is acting as the agent of the developer identified in the Santa Ana brochure. 2. The customer(s) identified in the Reservation Form overleaf acknowledge that there is a reservation fee of £2,500 + 16% VAT for each apartment in the Santa Ana development (the “Reservation Fee”). 3. Subject to timely receipt of the customer(s) correctly completed Reservation Form and the applicable Reservation Fee(s), and subject to availability, R2i shall reserve the apartment(s) identified in the Reservation Form for the customer(s).

4. £2,500 + 16% VAT of each Reservation Fee is being paid to R2i as a broking fee.

5. The customer(s) shall use all reasonable endeavours to complete contractual documentation for the purchase of the apartment(s) as soon as practicably possible following the issue of same by R2i to the customer(s). 6. The customer(s) acknowledge that the Reservation Fee(s) is non-refundable once a unit within the development has been allocated. On release of the brochure, the customer(s) has 48 hours to withdraw their statement of interest in order for their Reservation Fee(s) to be refunded in full. Customers who are unsuccessful in securing a unit within the development due to over subscription will be refunded in full. 7. The customer(s) understand that R2i is not a financial or taxation adviser, legal firm or mortgage broker and is not responsible for ascertaining tax or credit status or mortgage eligibility.

Reservation Terms and Conditions8. In producing Santa Ana brochure R2i has used all reasonable skill and care to ensure that the information contained is accurate. The customer(s) acknowledges however that the information may be based on an assessment and/or interpretation by R2i or an officer or employee and the customer(s) should therefore make their own enquiries. 9. The customer(s) acknowledges that the value of property can increase or decrease, as can rental yields. No representation or guarantee is given by R2i that statements, views, projections or forecasts contained in Santa Ana brochure are specific to any particular property. The information contained in Santa Ana brochure, or otherwise provided to the customer(s), merely represents a general picture of the property market in the territory identified and customer(s) must determine for themselves what reliance they should place on such information. The customer(s) also acknowledges that tax and other legislation may change.

10. Nothing in these Conditions excludes or limits the liability of R2i for death or personal injury caused by R2i’s negligence or for any matter which it would be illegal for R2i to exclude or attempt to exclude its liability or for fraud or fraudulent misrepresentation.

11. Subject always to 11 above:

11.1 R2i’s total liability in contract, tort (including negligence or breach of statutory duty), misrepresentation or otherwise, arising in connection with the performance or contemplated performance of this reservation and sale of the applicable apartment(s) shall be limited to the sale price of the applicable apartment(s); and

11.2 R2i shall not be liable to the customer(s) for any indirect or consequential loss or damage (whether for loss of profit, loss of business, loss or depletion of investment or goodwill or otherwise), costs, expenses or other claims for consequential compensation whatsoever (howsoever caused) which arise out of or in connection with this reservation and sale of the applicable apartment(s).

12. No term of this reservation shall be enforceable under the Contracts (Rights of Third Parties) Act 1999 by a third party. 13. The customer(s) shall not assign, transfer, charge or deal in any other manner with the reservation or its rights under it or part of it.

14. If any term of this reservation is found by any court, tribunal or administrative body of competent jurisdiction to be wholly or partly illegal, invalid, void, voidable, unenforceable or unreasonable it shall to the extent of such illegality, invalidity, voidness, voidability, unenforceability or unreasonableness be deemed severable and the remaining terms of this reservation and the remainder of such term shall continue in full force and effect.

15. This reservation shall be governed by and construed in accordance with English law and each party hereby irrevocably submits to the jurisdiction of the English Courts. 16. R2i is a trading name of Ready2invest Limited (4923529) of registered office Olivier House, 18 Marine Parade, Brighton, BN2 1TL. UK.

17. Nothing contained in the Reservation Form or these Conditions shall affect the customer(s) statutory rights.

Documents

Ready2Invest Guide to Property Investment in Santa Ana, Spain