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Old 04-08-2008, 05:49 PM
JMBroad JMBroad is offline
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Join Date: Jun 2007
Location: Natal, Brazil
Posts: 1,048
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Lets take Dotty last comment as an example (I have to use the one you quoted as I can't see her posts - put her on ignore a long time ago):

"Costa do Sauipe was heavily promoted as far back as 2000-by Unijet when they were trying to get the N.E off the ground (you may remember them) until the company folded .

Not much has changed since then as Unijet never got moving,Thomson's package holiday's have been and gone in Natal -which was one of the most heavily promoted regions in Brasil for overseas investors."


Dotty refers to Costa do Sauípe (located in the state of Bahia) then refers that to Thomson's package holidays have been and gone in Natal. That's like saying that a development in Brighton failed because trips to Edinburgh were cancelled.

"I get the feeling that the Brasilian estate agents are focusing on their Brasilian customers to invest in Natal, of course there are joint ventures, but it is not so easy without the flights coming in, fewer flights, fewer sales."

Do Brazilian real estate agents are selling to the Brazilian domestic market? Yes they are and sales are fast and furious. Just walk around and ask the sales offices how sales are going and who is buying, or if you prefer I can provide links to numerous BBC, CNN, CNBC, Tribuna do Norte, SKY News etc articles mentioning the growing domestic market.

As for making a quick buck,not cheap by any means .Simple eg buy for 100,000 pa 7% to register(not bad) sell for 150,000-200,000 pay 5 % commission and a further 15% in capital gains tax (if you do not reinvest in Brasil within 5 mths)so already has been eaten 20% and if you care to move money out of Brasil (which is often the case) another 15%, so work that out a hugh 35% taken straight away and not to forget the other tiny taxes in between approx 2%.

Someone else has already highlighted the lack of knowledge apparent here but let me exemplify in more detail.

"buy for 100,000 pa 7% to register(not bad) sell for 150,000-200,000 pay 5 % commission and a further 15% in capital gains tax (if you do not reinvest in Brasil within 5 mths)so already has been eaten 20%"

100.000 purchase price
150.000 sales price
5% commission
15% capital gains tax

5% commission on 150.000 = 7.500
15% capital gains tax = (on 50.000 profit) = 7.500

7.500 + 7.500 = 15.000

15.000 of 150.000 is 10% not 20%

100.000 purchase price
200.000 sales price
5% commission
15% capital gains tax

5% commission on 200.000 = 10.000
15% capital gains tax = (on 100.000 profit) = 15.000

10.000 + 15.000 = 25.000
25.000 of 200.000 is 13%, not 20%
"If I did not have strong links with Brasil would I invest here? The honest answer would be no."

Any questions? That was just the last post - go through just about every post and you'll start to see a pattern.
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