Investments in the U.S.

Challenging Investment Environment in Italy:
The Real Estate market in Italy has appreciated quickly, pushing pre tax yields down to as low 2-3% on investment property. In short, Italians are being told that yield is not important, because capital appreciation will make up for the loss in present income.
While, to some extent, this may be true, the ageing infrastructure, high maintenance and unattractive fiscal treatment of Real Estate earning, (including the inability for private investors under the Italian fiscal system to write off the actual expenses incurred in maintaining and leasing their property against rents received), has brought about an unfavourable mix of the traditional investment equation to in Italian Real Estate Market:

Present Italian Real Estate Equation:

Little Yield + Stability + Less Future Capital appreciation + unfavorable tax & legal treatment = Less Wealth

Real Estate Investment in Italy has, in large part, been transformed into a vault of stability, where one pays the present value price, through reduced earnings and income & increased inflation adjusted cost of maintenance and tax';s, of future capital appreciation.

Rapid Re-adjustment of U.S. Market Opening up Opportunities:
The re-calibration of the U.S. Real Estate Market is quickly bringing back opportunities for the value minded investor. The United States remains the largest producing economy in the world and the 3rd largest exporter of goods behind only China and Germany.

Wealth creation, of which Real Estate tends to benefit disproportionately, is the result of organic growth in population, advances in technology and natural resources. The United States possesses all three of these wealth creating ingredients, including a key increase in population, through internal growth and immigration. The United States offers this in combination with an advanced infrastructure and a legal and fiscal system favourable to the Real Estate investor. In addition, while the present environment remains challenging, reasonable leverage is still readily available for the financing of income producing properties. This is often not the case in Italy or Europe, where one is often asked for guarantees and pledging of additional property as collateral when seeking financing for investment property. The added advantage of leverage and a favourable tax regime increases significantly the attractiveness of the U.S. Real Estate Market, resulting in the following:

Present U.S. Real Estate Investment Equation:

Yield + Stability + Capital Appreciation + Leverage + Favourable Tax Treatment = Highest Return