Quote:
Originally Posted by Goldberg Global
Hi, thank you for all your posts. Debzar interesting comments about rental income. UV10 you say you have had some good rentals, I looked on your website and the products say guaranteed rentals but then i can not find the link to look into them.
Brazil is the worlds leading country of disparities, the haves and have nots. Obviously the distribution of wealth is an issue. Security is an issue. The coastal product will be directed at rich people, but what about the other people? How they going to feel? Sitting in the ghetto (favala) looking at people with second or third or tenth homes?
|
The important thing when looking at Brazil rentals is to study what Brazilians are prepared to pay, and for how long, and work your figures out from this base level. Always beware of developers offering short term (ie 2 year) rental guarantees, because
often it is simply a repayment to you of an overcharge on the initial purchase price, and designed to help sell the property in the first place.
I was with a Brazilian estate agent friend here on the island of Itamaraca last night, when he showed potential Brazilian rental clients what I thought was a pretty grotty property. I voiced my concerns and he replied that he has almost run out of available rental properties on the island for the season (ie now til end of March 2008), and is now scraping the barrel. He is approaching 100% capacity!!
But these are all Brazilians paying Brazilian prices for what they will use as weekend homes for the summer. Not the same as very high Euro prices for odd weeks in Spain, etc, - you must compare like for like.