Quote:
Originally Posted by PeixeGato
Paul, please explain. What do you mean by "traditional way" and "a little more raw"?
Thanks for your input. Its always great to hear from people who have already taken the leap!
Greg
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Good question, what i was meaning by that is it appears to me so far (please someone correct me if im wrong as i certainly dont fancy myself as an expert yet) that in Brazil Gingo s general buy an offplan or newly built and agree a rental agreement with the developer or agent at on say 8% and call the 8% a 'return' this 8% is what before you deduct the income tax at 16% then the high agents rental commission (normally 30%) after the tax all on your 8%, then of cause deduct your electric bills for your tourist tennants and your communal fees. Then its transfered to you account in whereever and loose even more on the usual high international bank charges. After all does not leave you with much.
Without going into examples with figures im sure you get the general picture.
Another for example would be to advertise it your self in brazil on popular rental websites, charges are (R$70 per month) but they are effective if you have property where brazilians want to go for holidays or would want to live long term for work for example. people use the website to contact you asking availability or negoiate a cheaper deal for them selfs. For example you can buy a resale 1 bed apartment on the prime biera mar fortaleza for R$85000 and charge the going rate there at R$100 a night, on BELOW average i think you get about 50% usage from tennant making your self about say R$18000 year, thats 21% yield, then minus a communal fee, common is R$400 month minus your R$70 minus say R$100 for electric a month leaving you with around R$11100 a year which then still gives over 13% at worst after i deducted bills.
Now 2 choices buy your property through your own company so your rentals can go through straight to your bank account in Brazil before your tennants use it, then you inform the receiption at your apart/flat that it is reserved on the dates etc to give them permission to hand over the keys. then you also get taxed lower and rebated against your outgoings. Also if you cant speak the portuguese it does not matter as you are communicating through email and there is plenty of tools to use to translate your messages, plus alot the Brazilians who can afford the prime locations are well educated and can speak english quite well. The other choice is to not to use a company but also not pay the tax at all instead you find someone you can trust hopefully from our own country who lives there(which is of cause difficult on your first few trips to a new country to you) who can collect the money for you and save it then collect in cash or transfer it for you from there own account. This is widely used and proffesional people do this for a 20% cut. If they try rob you then they loose your business and recommendations and you keep account as all bookings are done through yourself.
Sometimes I think people forget alot about this huge internal market in a country with 170M people in a growing econemy while there is already double the amount of millionaires than in Britain. Its certainly not a third world country with simply just a emerging market.
Hope this all made sense as i am writing this while very tired
Speak later