Offshore Olive Oil Investment Facts

A unique investment opportunity exists in the production, distribution, and sale of olive oil. Worldwide demand is growing and the supply chain needed to provide high quality oil to the world is in the process of being expanded and improved. There are a number of offshore investment opportunities related to this increase in demand. We look at a specific example of how an investor can become a part of and profit from the response to increasing demand.

The Oil of the Olive

Olive oil is a staple of the Mediterranean diet and has been for thousands of years. It is used in many recipes and is popular on tables and in kitchens across the globe as well as in the Mediterranean Basin. Its popularity has grown and, especially, because of the heart healthy effects of the oil is becoming more popular world wide.

According to the UNCTAD commodities web site page on this oil, it refers exclusively to oil obtained from the fruit of the olive tree and excludes all other oils obtained by using solvents or re-esterification. The term virgin oil only applies to oil produced in a mechanical process and at lower temperatures so as not to damage the oil. Refined oil refers to processed oil that still has the "triglyceric" structure of olive oil. If something else is mixed with the oil it is not marketed as suchl. This last fact is specifically different from many cooking oils which will list a number of possible ingredients such as palm, soy, or corn oil, etc.

This oil has a unique taste and is definitely the preferred oil for Mediterranean style cooking. Because of its unique structure it is the preferred cooking oil for heart healthy diets.

Olive Oil Consumption

The countries around the Mediterranean Basin account for roughly 77% of worldwide consumption. However, this figure is changing. Because the oil is an integral part of the Mediterranean diet it has little room to expand. Because the oil is just entering international markets it has a lot of room to go. According to recent figures the top five consuming nations are as follows:

Italy: 30%

Spain: 20%

Greece: 9%

USA: 8%

France: 4%

Countries that don't rank very high on the list, like Japan, have just caught on to olive oil and are showing exponential growth in consumption.

Olive Oil Production

Olive oil is not just a historic product of the Mediterranean. Roughly ninety-five percent on olive oil is produced in countries bordering on the Mediterranean Sea. Ninety percent of production comes from the top six producers, Spain, Italy, Greece, Tunisia, Turkey, Syria, and Morocco. Portugal comes in 7th with 1% of worldwide production even though it only borders on the Atlantic Ocean (as well as Spain).

As consumption has grown over the years it is highly doubtful that these countries can cope with the increasing demand. For example, reliable figures say that 60% of cultivatable land in Greece is planted in olive orchards. There is just not a lot of room to expand production on the North Side of the Mediterranean.

Production and consumption grew together through the 1970's to mid 1990's when production tailed off. However, demand for olive oil has continued to grow. Reliable figures and estimates are that olive oil consumption doubled between 1990 and 2000 and will have tripled again by 2020.

The place where the weather is still "Mediterranean" and the soil conditions suitable for growing olives is the North African coast of the Mediterranean. Here is where countries like Algeria and Morocco are catching up with Tunisia with the intent of becoming major olive oil producers and exporters. Algeria is promoting a huge olive tree planting project making available a million hectares (2.5 million acres) of land for orchards.

Investing in Olive Oil

Olive oil investments are not always easy to get into. Production is highly fragmented with orchards historically owned and tended on small properties by families for generations. Refining is more concentrated. For example, in Spain in 1995 there were 80 refining companies including cooperatives. In the major producing countries the market is very competitive and there are typically substantial barriers barring the entry of newcomers.

Due to the expansion of olive production into the North African portion of the Mediterranean Basin here is where more investment opportunity lies. Countries like Algeria are welcoming and inviting investment. An example follows.

A Specific Investment

A Spanish company with an Algerian subsidiary is investing in olive trees in Algeria. It plans to plant 1,500 hectares of which 500 hectares (1,250 acres or roughly two square miles) will be open to private investment.

The company will plant the Arbequinia olive on this land. This olive is fast maturing so that it starts to produce after three years. It is very cold and drought tolerant, and, important for the investor, can be planted in a hyper intensive culture. What this means is that the Arbequinia olive can be planted 1,780 to a hectare. With this level of planting the Arbequinia will produce roughly 11,000 kilo of small brown olives per hectare. Because this olive routinely produces 19% weight per volume of oil it will produce about 2,000 liters of oil per hectare. This fact is useful for investors as return on investment after three years includes payment of $2 per liter of oil produced.

Because the company intends to export high quality olive oil will build its own processing plant in order to insure prompt and professional processing of the Arbequinia olive for export.

Considering the increasing demand for good quality olive oil and the difficulty in investing in the Northern Mediterranean an excellent opportunity may well to invest in a project such as that of this company on the South side of the Mediterranean Sea.

http://www.userbancorp.com

An offshore formations and banking specialist working for several companies regarding offshore structures, formation of companies, foundations, banks and financial institutions in several jurisdictions, including provision of government issued financial licenses.

Working for User Bancorp Ltd, which is providing private and corporate accounts, merchant accounts, offshore companies such as Belize IBC's (International Business Company), Panama corporations and foundations, wire transfer services, managed funds/forex, credit- debit- and prepaid card issuing.

We also offer co-ownership and shares in different investment programs such as real estate investment in profitable jurizdictions like Panama, Belize and Spain.

Certificate of Deposit/Term Deposit accounts available up to 9 % p.a.

Contact me on e-mail: geir.holstad@userbancorp.com

Don't Buy The Wrong Investment

The times are good for investors. That was the conclusion from my last column regarding the latest mortgage industry problems and their affects on landlords and tenants.

The current credit crunch has stifled some potential home owners from purchasing their dream home, forcing many to stay in the rental market. This has been an encouragement to landlords who have suffered under stagnant rents and fewer prospective tenants over the last few years.

At this time, there are many opportunities for investors in the real estate market. According to the Federal Reserve Bank, foreclosures are at an all time high in the national market. In addition, the housing sales slowdown affords investors a chance to pick up properties on short sales or directly from a distressed buyer.

Because of these opportunities, it's important for investors to better understand their place in the real estate market. I've had the opportunity to teach several courses on investment real estate. From my experience in this arena, I place most investors in one of two categories: net worth investors or cash flow investors

Many investors initially gravitate to single family homes. This is an easy category to understand for most people and they are comfortable with the lingo of single family homes. Whether they know it or not, this category of investor is generally a net worth investor. A net worth investor is one that makes money over a long slow period of time, and very little on a month to month basis. They build "net worth" slowly while the property appreciates in value.

The single family home simply isn't going to produce a large return except in the long run. The reasons are many, but the simplest is that the average home will produce about .75 percent per month in rent of its value. This is my personal rule of thumb and it fluctuates according to market cycles. Based on this rule of thumb, a home valued at $150,000 will produce a monthly rent generally around $1,125. Given a down payment of 10 percent, a 7 percent, 30-year mortgage, property taxes, and insurance costs, that home will produce anywhere from $6 to $73 per month, depending upon the county location, in net cash flow before repairs and vacancies.

So, the net worth investor is banking on the fact that single family homes in the past have appreciated in value and hopes to someday capitalize on that trend.

The second type of investor, the cash flow investor, looks to real estate investments that produce more cash flow on a monthly basis than in the long run. In other words, they may give up future appreciation for money in their pocket today. Multiple family units, such as duplexes, quads, or apartments, generally fit this bill. The main reason is that the unit can be bought cheaper than a single family home due to lower land and development costs per unit. Because of this, that lease rate ratio comes closer to 1 percent.

So, a multi family unit that is purchased for $75,000 might produce a rent of $750 per month. Using the same parameters from the single family home example, this unit will produce cash flow of $170 to $205 per month, depending upon the county location. As you can see, this small deviation in the lease rate ratio produces a sizeable difference in monthly cash flow; thus, making the multifamily investor primarily a cash flow investor.

Another factor for the investor to consider is the exit strategy, which is how to dispose of the investment when they are ready.

The net worth investor who is buying single family homes will be selling his investment to a retail buyer. A retail buyer is someone looking to purchase the home to live in. This buyer market is generally fairly stable since there are a lot of them in the market place. Thus, it provides a little more liquidity for the net worth investor since the property is easier to sell. Additionally, this buyer may buy on emotion and doesn't care how well the house produced as a rental or what the investor paid for it. So, the investor, in a good market, can ask top dollar for the property no matter how well he managed it as a rental.

On the other hand, the cash flow investor is almost always selling to another investor. This may be an investor who bases his entire decision on the income of the property. The cash flow investor won't have the luxury of stretching the fair market value. The purchaser will only pay what the rents dictate.

So, while there are many opportunities in this new market cycle, potential investors must decide which route they want to take. Do they go with the direction of slow and steady and hope for a big pay day, or do they look to cash in the pocket today with less excitement in the end? These are questions that every investor, whether big or small, eventually must answer for themselves.

http://www.capitallistings.com

Brian Patton, CCIM, owner of Capital Realty Advisors, LLC, of Atlanta, Georgia, is an author, columnist, broker, and speaker on commercial real estate issues.

Real Estate Investment - When is the Bottom Really the Bottom?

The real estate market continues to spiral downward on its way to bottom. Every day, the press continues to report more and more bad news. Foreclosure rates are up and home sales are down over last year. "Short sale" has become an all-to-familiar phrase in the industry. The question that is being asked is, "When will the value of real estate stabilize?" Can anyone accurately predict when the market will actually will reach bottom?

The press and most others are not asking the right questions. The real estate market should not be considered as one giant ocean without tributaries, but rather as streams and rivers representing local markets that flow together to form that larger body known as the real estate market.

In some small towns, the local market can be made up of an entire town. It doesn't matter whether the house is located on "A" Avenue or clear cross town on "P" Street. Relative value would not be affected by location. In larger towns or small cities, neighborhoods would govern "locational" values. While in larger cities, two perpendicular streets may each have different value.

The type of real estate investment also reflects what market a property is in. A single family house, an office building or a mall are all different markets even if they are in the same town or neighborhood. Each property's value will depend on these factors. Is there any wonder why it is so hard to predict when the nation will hit "bottom"?

Real estate is a unique form of investment. As I have written, it takes many different forms when considered as an investment. If you consider income producing properties, then the value can only ultimately increase as much or as fast as the income it produces. The market corrects relatively quickly because the income of the property can not sustain the debt service on the borrowed funds at the inflated price. Investment real estate is a business, i.e. income must be more than expenses in more years than not to be sustainable. Consequently, you can only hype that product for so long before the bubble pops.

The home market is a different story. It takes longer to correct because it is farther away from a "perfect" market. Primary or secondary residential properties do not produce income from tenants. However, they do have expenses such as real estate taxes, insurance and debt service. As prices for these properties escalate, so do the expenses, especially the debt service. However, as prices escalate, fewer and fewer people can afford to buy the asset since, in a perfect market, they would not qualify for financing. As we saw, though, this controlling mechanism was abated by banks and government lowering lending standards, reducing down payment requirements, and having low initial interest rates on loans. These artificial mechanisms allowed more and more people to qualify for homeownership which then consequently bid up the value of homes to an unsustainable high. When the inevitable downturn occurred due to the combination of oversupply, the price of oil and higher interest rates, the boom turned to a bust and we have a falling market.

Many factors will influence when the bottoming of the broader market will occur. That question, like others posed by the press, is irrelevant to the investor. You can not time the real estate market any more than you can time the stock market. Each purchase or sale must be evaluated through the unique prism of the time, place and circumstances when it is occurring. If, after thoughtful analysis, it doesn't make economic sense, then the investment should not be made or a current holding should be sold. Too often we see what we want or hope to see rather than what is actually there.

Thomas F. Campenni CPM, CCIM has more than 35 years of experience as a broker and is licensed in Florida, New York, New Jersey and Connecticut. Since 1992, Tom's focus has been working with a smaller client base so that he can provide the kind of individualized service that results in greater return for his clients and, consequently, greater client satisfaction. In addition to his real estate brokers' licenses, Tom also holds insurance licenses in New York and Florida and has earned the CCIM (Certified Commercial Investment Member) and CPM (Certified Property Manager) designations. Please visit http://www.thomascampenni.com or email him at Tom@thomascampenni.com for additional information.

Life Time Investment - A Soft Pillow Under The Head

What does an Insurance signify? An Insurance basically means a sound and fool-proof protection for any person or individual in case of his unfortunate demise. In such a case, the immediate family members or the next of kin of the deceased are provided with a substantial financial support for the remainder part of their life in exchange of the payment of a small amount of a premium made by the Policy holder. This is subject to the condition that the payment of the premium is made regularly for a stipulated period of time till the end of the policy. However, even if the policy holder is alive and well, he stands entitled to a substantial benefit of financial security immediately after the stipulated period of the Insurance Policy is over. This is all the more beneficial considering his retirement from service when he is in dire need of financial help. This financial help comes in at the right time and is available to him throughout his life time. In fact, Insurance is in fact an integral part of solicitation.

It would be pertinent to mention here that around three and half decades ago, the only Insurance Company in India available was through the Life Insurance Corporation of India or the L.I.C., which was a Government body under the Ministry of Finance. At that time, there was hardly any competition against this organization. Various other kinds of insurance covers were provided by a few other government organizations, such as, the General Insurance Corporation, National Insurance Corporation, etc. Thus, the general public was left with hardly any other option other than to go in for a Life Insurance through the Life Insurance Corporation or other kinds of insurances through government agencies offering insurance against vehicles, home insurance and a broad spectrum of insurances.

Over the last two decades or so that have lapsed and especially during the last decade, there has been a large-scale burgeoning of a large number of companies in the Private Sector that have emerged where the sole purpose is to offer insurances to individuals and organizations keeping their client's interests in mind offering them better benefits and amenities. Today, there is a plethora of insurance companies on the horizon who offer much more than the earlier companies could provide.

In today's scenario, Insurances are generally categorized under various heads:

Life Insurance

Vehicle Insurance

Medical Insurance

Home Insurance

Overseas Medical Insurance

Students Insurance

Accidental Insurance

These varied insurances offer a full-fledged cover to the individual or organizations against any unprecedented risks of losses or of lives. A large number of these insurance companies are struggling in an attempt to out-beat each other so that they attract a larger number of customers in their fold. The cut-throat competition amongst these private sector companies is so intense that each one of them is all out to throttle each other out of existence. These companies have also given rise to an equally large number of insurance brokers whose sale pitch and peripheral activities provide the individuals or companies with maximum bargains. The buyer of these insurance policies has a wide range of choices from where he can opt for a better bargain that would stand to their benefit.

Life Insurance is one of the most popular insurances of its kind. These insurances sell like hot cakes especially for individuals. The risk covers that these insurances provide to the policy holder are not only manifold but are beneficial in the long run. A Life Insurance is most beneficial for a person when he is in his youth and working, since when an insurance policy is taken up at an early stage, the risk cover is far longer and the maturity amount of the policy is high whereas the amount of premium is not only affordable, but is pretty low. Actually, even when though the amount of premium is rather low, the policy holder feels the pinch, but this discomfort is eliminated when towards the end of the policy period, the maturity amount covers it all.

There are however policies where a percentile part of the amount is refunded back to the policy holder at regular intervals which is the Money-back policy. Even this partial amount when received at regular intervals serves in good stead to the policy holder. Insurance companies offer a retirement cum pension policy where a person pays regularly his premium and towards the end of the term of the policy starts receiving a fixed amount of pension which holds good and provides financial support in his old age.

These days one of the most popular and in demand are the cash-less policies especially for hospitalization and vehicles.

A Vehicle Insurance is one of the primary requirements which a person must carry while purchasing a vehicle. It is extremely necessary taking into account, the enormously large number of fatal road accidents taking place in the dense traffic and the unavoidable damage caused to vehicles in the wake of these accidents.

The insurance cover for your vehicle after insurance includes the vehicle, the person who is driving as well as the person who has met with the accident with your vehicle. The entire cost for the damages is paid for by the Insurance company and therefore the policy holder does not undergo any loss of money. The repairs these days are exorbitant and prohibitive and to get a damaged vehicles involves a fortune. Under the cashless policy, a damaged vehicle can easily be repaired without the owner having to shed any cash rather the repair activity is taken care of by the insurance company. In fact, there are a large number of law enforcing that impose penalties and ensure that the person driving a vehicle mandatory goes in for a vehicle insurance. Besides, there are a large number of automobile dealer agencies that insist that vehicles be driven out of their showrooms only after they have been appropriately insured through an Insurance Company and therefore provide insurance covers on vehicles themselves.

Medical Insurance comprises of a full comprehensive cover for the individual as well as families against all unexpected illnesses or aggravation of diseases, especially where a person is required to be admitted to a hospital. With the escalation of cost of medical treatment and the consequences of a person going totally bankrupt, it is ideal that one goes in for a medical insurance without any second thought. In fact, these days there are a large number of companies both in the government sector as well in the private sector that offer cash-less insurance policies. One needs only to produce his identity proof and he would be admitted in the hospital as per the insurer's list and the treatment is started immediately without any amount to be paid by the insured person. It is the insurance company that takes care of the medical expenses of the patient. It would be pertinent to mention that a large number of companies in the private sector have also taken up hospitalization insurances for its employees. In such cases, the front-ending is done by the company and pays a consolidated premium to the insurance company after deducting a very nominal amount from their employees. These are tailor-made policies between the insurance companies and the private sector company. A floater type of medical scheme specially caters to the entire family of the employee though there may be some increase in the premium, but that is beneficial in the long run.

The House-holder policy is one of the major policies that a person is required to go in for. There is hardly any doubt that with the increasing cases of fire and arson as well as burglaries, it is imperative that one should go in for an insurance cover for the house, which is well-known as house-hold insurance policy. There is hardly any human control on natural calamities that may come upon all of a sudden and render casualties and irreparable losses. Under these circumstances it is always preferable to have a house-hold policy. In exchange of a small amount which is payable annually, you can get your house insured against all accidents, natural calamities as well as human actions.

Overseas Medical Insurance is an insurance cover where the traveller takes up this policy before leaving for abroad. The exorbitant and prohibitive cost of medical treatment in any foreign country can be totally devastating. The Overseas Medical insurance takes care of all your medical expenses for treatment whether the illness is major or minor. This kind of insurance, though normally taken up for a stipulated period of the stay of the traveller abroad can be extended before the expiry period of insurance. For a relatively small amount of premium, the coverage amount can be very high comparable to the anticipated expenses of the treatment abroad.

The Students Policy also takes care of the expenses of the student for pursuing further studies either in the country or in a foreign country. The parents of the child require to contribute a small amount of premium on a periodic basis and when the child comes to an age where large sums of money are required to be paid for higher studies.

The Accidental Insurance is of the utmost importance. With the phenomenal increase in traffic accidents taking place, this kind of insurance comes in very handy. This is especially so where the injuries sustained by those travelling in the vehicle are serious and need intensive care. For this kind of treatment, the costs are prohibitive and beyond an average person's means, no matter how much he may be earning. This insurance covers of not only the cost of the treatment in the hospital, but post hospitalization expenses.

There has been a sudden spurt of activity in the Insurance sector in the country over the past few years now. With a gamut of insurance policies available on the platter in this country of all types, it is not only mandatory, but also imperative that these be taken up to avoid unnecessary risks and costs leading to irreparable losses. Would it not be better to rest peacefully under the soft cushion of these policies and forget worrying about the future.

How To Create an Environment of Investment - Or How Humanitarian Projects Could Save The Day

Sometimes, when surviving through an economic depression, especially like the last one, which had world-wide coverage and effect, the only way to get going at full speed again is by applying a massive kick-start.

Create an Environment of Investment.

Most noble comment. But which Government has the will, or the financial clout (especially after a series of such dramatic natural disasters) to start or jerk this fragile recovery into action?

Perhaps no 'standard' government has the financial clout any more. But what about an association of First Nations people?

More about that later; let's look at what is happening in the world, and issues that need addressing as rapidly as possible.

Those that spring most readily to mind are Global Warming, and our seemingly unswerving dependence on rapidly-dwindling fossil fuels, followed by a world-wide concern over poverty and health issues.

Let's take a closer look at some of these issues:

Our continuing desire to burn massive amounts of fossil fuels (petrol and diesel), as well as even bigger amounts of coal, oil, and natural gas on generating most of our electrical power.

We create monstrous, unsightly, and highly inefficient wind farms, using out-dated technology that in itself takes up to 20 years to replace the carbon footprint created to install them

Our continuing desire to throw away our waste in the most selfish manner, and then let our local councils either burn or bury it (or export it to some other country - who usually bury or burn it for us).

Our very fickle desire to build houses in a manner that takes such a high carbon footprint to achieve it, and causes so much waste by-products, and then, we insist in spending even more fossil fuels in an attempt to keep these houses hot in winter and cold in summer.

Then, do we make any attempt to conserve water. No, we regularly flush our toilets, public urinals waste Olympic Swimming pools of water every year; rainwater and waste water is just literally poured down our sewers.

How do we try to control diseases? We just get through millions of gallons of bleach, and other products that 'kill all known germs DEAD'. We treat fats oils and grease in the same manner, and just move the problems 'further down-stream', creating a superb playing field for all sorts of nasty pathogenic bacteria.

Let's look at each of the above points in more detail

Burning masses of fossil fuels to run our power stations, or run our cars and other transport. Until the recent Japanese nuclear disaster, Britain was on track to build 4 new nuclear plants. What an environmental and potentially disastrous choice. Electric cars? Not with the current battery issues and recharging times. But how about hydrogen produced from a simple cell, with a few gallons of water? Want to see a MAC truck or a Hummer running on one of these devices, with very little modification? Email me and I will send you a number of videos.

Wind farms. Have you recently been concerned about a collection of these prehistoric monsters getting planning permission to damage your view and your environment, as well as a danger to wildlife? We have the latest technology vortex wind turbines, that are unobtrusive, and far more efficient than the gargantuan dinosaur wind turbines.

Waste handled in the only proper manner. We have systems that can automatically sort all household waste (no more need to have selective bins); that can also take in dangerous hospital waste, green waste, oily sludge, tyres and plastics, and even human and animal sewage, and convert it very efficiently into green electricity - with No Incineration, and No Toxic ash. Efficient, maximised recyclables, reduced landfill needs, and reduced pollution. Perfect solution to our energy, resources, disease containment, and stops locking up scant fossil fuel based products on land fill sites for ever.

Sustainable Living. Why continue to build houses that need such a large carbon footprint to build, create so much waste, and then cost so much to run. Our houses are already built to the UK Government's Code 4 standards - probably 10 years ahead of anyone else.

Water -that scant resource that in some areas may cause a new World War. How about a collection of systems that can conserve water in toilets, recycle rainwater and other waste water, purify water, computerise crop watering, and how about this - a machine that can extract gallons of water every day from the air - even in a desert?

Using Nature to help fight disease. Rather than using chemicals that are toxic to our very environment, why not resort to Nature to fight natural illnesses. Using products such as EcoBug that uses 'good' bacteria to remove smells, fats etc, by outperforming pathogenic germs, alongside other natural products, we start to undo much of the destruction to our natural environment by this subtle move.

Eco-Tourism. Living with Nature. No point continuing what mankind has done increasingly over the last few centuries - destroying Rain Forests, hunting to extinction so many forms of wild life. Each Peace City will have an EcoPark area allocated to it, where the local natural flora and fauna, and indigenous animals and bids, are protected, encouraged, and enjoyed.

Fine. So we have many technological breakthroughs, that if they were to be adopted universally, what a great overall benefit they would have for all mankind.

Taking that process one stage further, and, following the lines of the United Nations 8 Millennium Goals, that also includes eradicating poverty and homelessness, reducing infant mortality, better education, better sports health, better employment which would lead to a much higher standard of living for so many millions of people across the world. If we could combine technological advances with these humanitarian goals, what a better place the whole world would be!

Now, going back to my earlier comment about a coming together of a number of First Nations people, who were able to combine their Sovereign Wealth into a suitable financial instrument of power, here we are looking at levels of resources that at this present moment in time, no 'conventional ' government could access.

What better way to utilise these resources to create a number of new 'Peace Cities' in a number of locations around the world, that combined all of the above benefits, including plans for education, employment, medical health, hospitals, shopping malls, sports awareness, agriculture, animal husbandry, with all the civic structure of a new City fully in place.

If these First Nations fully funded these projects, imagine the amount of local investment that this would attract - creating the climate for investment and humanity - and here you have the perfect kick-start to a far better, caring, humanitarian, peaceful world.

Far-fetched? It can never happen? Then I suggest you see what the Matua Karanga Foundation Trust is up to - under the control of His Excellency Chief Charles Hohepa - Sovereign Mandate of the Maori Nation.

Geoff Morris is working with a number of companies facilitating the humanitarian projects being implemented by the Matua Karanga Foundation. If you would like to understand more about His Excellency Chief Charles Hohepa, The Foundation, and the collaboration between First Nations, their Cultures, and the planned Humanitarian projects for around the world, please visit http://www.matuakarangaglobal.org

International Investment - Italy in the Spotlight

As the sixth largest world economy and with 60 million consumers, Italy has always offered numerous opportunities for international investment. Its location at the crossroads of the Mediterranean, its reputation for creativity and design, its high number of SMEs, its highly skilled workforce and high standard of living make it an attractive option for the overseas investor.

Italy is unique in the EU for the number of SMEs, often family-run businesses employing less than 100 people. Many of these are located in Italy's 'industrial districts'. An industrial district is defined as a conglomeration of small and medium sized businesses focussing on single production in a specific geographical area.

As with other economies, Italy's situation has changed dramatically in the last two years. Industries have been repositioning themselves to take account of the global credit crunch, the effect of competition from the Asian market, particularly China, and the exchange rate fluctuations between the stronger Euro and other currencies including the dollar and the pound.

At the lower end of the market, Italy cannot compete with cheap produce from overseas. Many local markets throughout the country are now flooded with goods made in China. Therefore the focus is now on doing what Italy does best - producing high end, cutting edge, quality products in the areas of consumer goods (such as footwear, fashion and design) and precision engineering.

Opportunities for Investment

Three areas stand out as having been relatively unaffected by the current global crisis: wine making, tourism and real estate.

Italy is the fourth most-visited country in the world and so anything connected with the hospitality industry from restaurants to hotels and agritourism is still a good investment bet as long as it is in an established tourist area (the cities - Rome, Florence, Venice for example) or in a growth area like Puglia or Basilicata.

Wine making generated 3,919.4 million Euros in 2008, outperforming confectionary production and pasta making. Despite a fall in national wine consumption, this continues to be a flagship Italian export.

The amount of cross-border investment in real estate increased from 41% (2006) to 58% of total estimated investments, to reach 4,215 billion euros in 2007. (Source: assoimmobiliare association) Although the value of property has decreased along with other industrialised countries, the percentage fall has been far better than the 5 - 10% drop in other countries. The commercial and shop sector is continuing to do better than the residential sector. The south is also doing better than the north.

A number of incentives both from the EU and the Italian government are available for regional development and the government is focussing particularly on development of the traditionally less industrialised southern regions of the country known as the mezzogiorno, namely Calabria, Puglia, Basilicata and Sicily. A budget of $125 billion, resulting from a merging of national and economic funds, has been made available between 2007 to 2013 to encourage investment and growth in the south.

Subsidies available are in the form of grants, interest rate subsidies, tax credits, equity participation and state guarantees. Eligible areas include manufacturing, mining, power generation (particularly for ecological and renewable energy projects) and the agricultural and fishing industries.

The Italian government is committed to encouraging long term growth of the market and has made numerous reforms recently- These include changes in company and tax law and the e-government system to simplify the infamous Italian bureaucracy.

DIY Home Staging Produces a 299% Return on Your Investment

Low cost, do-it-yourself home improvements produce a significant return on investment when a home is sold.

HomeGain just released the findings of their survey of 600 real estate agents nationwide to determine the top 10 low-cost (less than $5,000), do-it-yourself home improvements for people getting their home ready to sell.

Based upon return on investment (ROI), Home Staging ranked 3rd as the most profitable improvement that can be made to a home, yielding a 299% ROI. An average investment in home staging of $550 produced a $2,194 price increase.

Home staging as defined by the survey includes adding fresh flowers; removing personal items; reducing clutter; rearranging furniture; adding new props or furniture to enhance room/s; playing soft music; and hanging artwork on walls. A home staging checklist compiled by HomeGain offers more tips for making the home attractive to buyers so that they can envision themselves living there.

Cleaning and Decluttering ranked number 1, with a 586% ROI. Almost every real estate agent (99%) recommended this in the survey.

Cleaning and decluttering was followed by Lightening and Brightening which produced a 313% ROI. Lightening and Brightening include opening windows; cleaning windows and skylights inside and outside; replacing old curtains or removing curtains; removing other obstacles from windows blocking light; repairing lighting fixtures; and making sure windows open easily. 97% of real estate agents recommend this step.

80% of agents surveyed recommended home staging to their clients. Here are what a few had to say:

"We believe staging is so critical. We own our own staging company and provide a $3,000 staging for free as a part of our listing package." - Carl Medford, California Prudential Realty, Castro Valley, California

"Staging, I think, is the most important item when selling a home. I usually give my clients a free consultation, so no need to hire anyone. But if they hire someone, I think it's the best money they will ever spend. You need a neutral party who knows what homebuyers focus on when looking at homes." - Harry Martin, RE/MAX United, Escondido, California

"Homes that are "Priced to Sell" and "Staged" to look better than all other competitive listings are the homes that are selling in this challenging housing market." - David Jaffe, Coldwell Banker Residential Brokerage, Arlington Heights, Illinois

"I always tell clients to stage. It's more effective than price reductions and usually costs less in the long run." - Edward Sullivan, Massachusetts

Here are the full results of the survey:

1. Cleaning and de-cluttering ($290 cost / $1,990 price increase / 586% ROI / 99% recommended)

2. Lightening and brightening ($375 cost / $1,550 price increase / 313% ROI / 97% recommended)

3. Home staging ($550 cost / $2,194 price increase / 299% ROI / 80% recommended)

4. Landscaping ($540 cost / $1,932 price increase / 258% ROI / 93% recommended)

5. Repair Electrical or Plumbing ($535 cost / $1,505 price increase / 181% ROI / 92% recommended)

6. Update kitchen and bathrooms ($1,265 cost / $3,435 price increase / 172% ROI / 75% recommended)

7. Replacing or shampooing carpets ($647 cost / $1,739 price increase / 169% ROI / 98% recommended)

8. Painting interior walls ($1,012 cost / $2,112 price increase / 109% ROI / 96% recommended)

9. Repair damaged floors ($931 cost /$1,924 price increase / 107% ROI / 93% recommended)

10. Paint outside of home ($1,467 cost / $2,222 price increase / 51% ROI / 81% recommended)

For more information on this survey, as well as for definitions and homeowner checklists for each improvement, go to http://blog.homegain.com/homegain/homegain-2011-home-improvement-national-survey-results/.

© Copyright 2011 Designed to Appeal, LLC. All Rights Reserved.

Donna Dazzo is a home stager and interior redesigner serving New York City and the Hamptons. She founded Designed to Appeal ( http://designedtoappeal.com ) in 2007 after a successful career in the financial services industry. Her experience in project management and marketing, combined with her lifelong passion for interior decorating and design, makes her a unique professional to help both realtors and home sellers sell homes faster and for top dollar.

To contact Designed to Appeal, subscribe to its monthly newsletter or to request these three free checklists: Holding a Successful Open House, Organizing Closets and Moving, click on http://www.designedtoappeal.com/form.asp?i=1.