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Originally Posted by PeixeGato
WOW! Thanks for making this much clearer. So how do the Brazilians pay you for their stay? Do you have a bank account where they wire the money into?
Also, would that set-up work if you decided to advertise your property on a website that is geared toward international travelers? Coudl you set up your account in your home country and have them pay you before they arrive in Brazil, thereby cutting the Brazilian bank system out of the loop completely, or would this raise the red flag to officials in brazil? I guess my overall question is making the unit available to the international market as well as the in-country market.
I had figured that you were paying a premium for the off plan stuff, even though you are buying it cheaper than it would cost after completion (so they claim). After all, you are paying for new construction, the convenience of a management company already set up, the community feel with the club house and all, etc, etc.
Have you looked into buying desirable beach-front land with the hopes of either developing it or selling it to a developer?
Thanks again for your insight!
Greg
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Hi Greg,
That method is an prime example, little more hassle but lots more profit on income and more importantly income straight away instead of waiting 2year etc. I used this example which is very common to help open a few minds and put a dent in the offplan sales spin and propaganda which i feel is being pushed a little too far. Dont worry readers as much as i admire and agree alot of which Golf writes rest a sure that i am not Golf the 2nd as the difference is i so believe in investment Brazil as a whole, i just want some people to be more flexible in there thoughts about it all.
At the moment i own a villa which i hope you have already read about, not a appartment on Beira Mar (altough that is my next aim!) I dont use that system you are asking about yet. In fact i have only rented my villa out on 3 occasions due to only just doing my refurbs because i only got the fund s to do it only a few months ago and because i had some after sales problems with the dam estate agent i used (estates who dont specialise in rentals and only interested in sales) all sorted now though and learned more lessons. The rentals i have had someone who lives in the area collected for me and gave me the money in cash in July when i was last there, infact my my friend got me those rentals shortly before i even did the refurbs at 20% cut, I will be using a internal website shortly and as you wisely stated (you hit the nail right on the head there) be advertising the tourist market too. Tourist would pay direct to my UK account (no tax someone is only owing me some money) because i have a advanage with some contacts in the area and as i visit often i will let my contact collect for me for the 20% and save it till i have my Brazilian account sorted. -Brazilians would not like sending money abroad because international banking in brazil is higher charge than UK.
Now my villa was aimed at a big capital gain with rental income as a nice little bonus for holiday money, my next move i plan on Beira Mar 1 bed, Iam in the process of organising a investment business account then using the $50K to buy the apartment.
Advantages is that Brazilian rentals pay into the account, i dont need topay my contact the 20% and i have the use of a visa as a options (as i think options are great as you never no what the future holds and also i am considering mybe working over there in the short future).
Disadvantage is have to pay the tax which im guessing would be too awkward to dodge though a business acc. but also which the tax can be very much reduced but i dont have enough of those facts yet as still working on that one.
Brazilians if they earn extra money into their personal acc they would laugh at the possibility of paying tax on it, i asked about it once in brazil and got looked and talked at as if i was crazy.
Hope that helps
Paul