Quote:
Originally Posted by deedee1
 Hi all,
The banana is a great development I dont doubt that- but your clients have to be aware that there may be pitfulls in the long term i.e- selling on, rental incomes, transportation, market choices!!! |
I think these pitfalls relate mainly to the short-term so they could be a worry for anyone looking to make a fast buck or anyone banking on an immediate rental income. In the long term (15-20 years) my own feeling is that the areas which stretch North and South of Fortaleza will be one long urban sprawl stretching inland, with little to differentiate the localities. I think that in this time-scale the landscape will be completely different - lagoons will be cleaned up, roads will be surfaced, amenities will be developed, etc.
Personally I am in it for the long haul (10 years plus) and I am looking at it as speculation rather than investment, i.e., capital appreciation as opposed to rental income. I guess people would argue that if I purchase beach-front I can have both but I am sceptical about rental returns in NE Brazil in the short-term. I base this on the lack of tourists around in Fortaleza and Natal in April and comments made to me by locals and ex-pats. My £50k (I am not ordering the extras because I am not expecting any rental returns) still gets me a 3 bed villa as opposed to a 1 bed apartment which I am happy to sit on for the next decade, at least. My only concern is that the site remains secure for this period of time as I was warned about vandals and squatters who target empty properties.
These are just my opinions, which I base on my own circumstances – who knows, in a few years tourists could be flocking into this area all year round. I am relatively new to forums and I think the great thing about them is that you are exposed to a diverse range of views and opinions. Another great thing is that people like Wolfgang take the time and trouble to post candid on-the-spot-reports even though he is no longer personally interested in the development – thanks Wolfgang!
Andy – at the end of the day you are an agent so it's not surprising that people take what you say with a pinch of salt. Any agent would be doing their client (the vendor) a great dis-service if they pointed out the negatives on a development.