Brazil: Hotspot Or Not..?????

[deedee1]

Hi all,

Would like to know peoples views on whether brazil is becoming a property and investment HOTSPOT or NOT..???

Personally I think that brazil is fast becoming a property and investment hotspot- currently one of the fastest in the world!

With so much changing so quickly- with investments flooding in and massive infrastructure and development improvements that are being made!

With numerous luxury resorts and facilities being built in a tropical climate with paradise on your doorstep!

What do you think...????

See ya D

[deedee1]

HI ALL,

FOUND A VERY INTERESTING ARTICLE AND VIDEO REGARDING BRAZILS INVESTMENT AND ECONOMIC SITUATION!!

The video has interesting facts on it - if you have speakers then fire away!!

Brazil Property Investment. Property Market Potential

See ya D

[robh]

Hi Lisa,

I agree with most of your sentiments, but I don't think the volume of new properties coming on the market is anywhere at the levels required to create a bubble. Whilst there is a lot of building going on it is tiny compared to what is still going on in Spain and in Dubai.

I do agree you should get in fast though as our latest development here is nearly sold out after only a few weeks. I know the owners of another 2 developments in the area that were built years ago and they are still running them as resorts and have been making excellent rental returns for their clients since then and look likely to for years to come.

As you say use a good agent to find something to suit you and your budget and always, always get a lawyer to act on your behalf.

Regards,
Rob

Originally Posted by LisaNic

Hi dee

Being an agent for Brazil I can say that i feel it is certainly a fashion for investors at the moment to be buying in brazil, however people are not just buying for huge ROI, many are lifestyle buyers as well. Certainlly for us an agent Brazil has been the "HOTSPOT" for 2007 so far, with 85% of our sales being on projects there. Of the 85%, 60% have been in natal.

I have done a lot of research in to the Brazilian market in order to be able to advise clients effectively and we are telling clients that brazil is a good short and mid term investment with a medium risk level. I do feel however that the bubble will burst eventually with the amount of devlopment going on especially around natal and fortaleza. This I feel will open to new markets such as Panama and India, which are tipped as "the hotspots" for 2008.

The huge concern with Brazil is the amount of unlicenced projects, however if clients uses a good lawyer and carry out full due diligence there should be no problems at all. A good agent is always a useful ally as well, especially an agent who carries out due diligence prior to launching a project in order to be able to advise clients in an open and honest fashion.

I definitely feel that those buyers that have already bought in Brazil have made a great and wise investment and i am sure they will see great ROI over the forthcoming months / years. Those that havent already bought should get in before the end of 2007 to ensure they see the maximum available returns.

Mant thanks

Lisa

[Golfingworld]

Originally Posted by LisaNic

Hi dee

Being an agent for Brazil I can say that i feel it is certainly a fashion for investors at the moment to be buying in brazil, however people are not just buying for huge ROI, many are lifestyle buyers as well. Certainlly for us an agent Brazil has been the "HOTSPOT" for 2007 so far, with 85% of our sales being on projects there. Of the 85%, 60% have been in natal.

I have done a lot of research in to the Brazilian market in order to be able to advise clients effectively and we are telling clients that brazil is a good short and mid term investment with a medium risk level. I do feel however that the bubble will burst eventually with the amount of devlopment going on especially around natal and fortaleza. This I feel will open to new markets such as Panama and India, which are tipped as "the hotspots" for 2008.

The huge concern with Brazil is the amount of unlicenced projects, however if clients uses a good lawyer and carry out full due diligence there should be no problems at all. A good agent is always a useful ally as well, especially an agent who carries out due diligence prior to launching a project in order to be able to advise clients in an open and honest fashion.

I definitely feel that those buyers that have already bought in Brazil have made a great and wise investment and i am sure they will see great ROI over the forthcoming months / years. Those that havent already bought should get in before the end of 2007 to ensure they see the maximum available returns.

Mant thanks

Lisa

I read your website in relation to Brazil, above you speak of "Due Diligence" which to me means facts and figures, not broad statements. In view of the fact that you recommend "Due Diligence" please can you be specific and tell me which particular airlines actually offer flights to The Fortaleza region? To quote you..... "Both Gatwick and Manchester now offer weekly direct flights to the Fortaleza region."

According to my research not one airline from The UK offers direct flights to Fortaleza, TAP may do a transit flight via Lisbon, but no UK Charter or Scheduled airline goes there! I have just run an internet search on three major airline search sites and there isn't one charter flight out of the UK into Fortaleza in the next six months. There are only two airlines quotes, Lufthansa via Frankfurt and TAP via Lisbon. The cheapest price is about £700. So please explain how your "due diligence" has come up with such rash statements? Sorry to be to the point, but if you make claims, please back them up. If you have done a lot of research into Brazil, please explain why you have got it so wrong on the flight situation? Communications are the key to good expanding "off plan" property markets and those simple, easy, cheap communications just do not exist at present. You don't claim, the future, you claim the present.."now offer weekly flights"..the key word being now! This is not correct. To my mind the huge concern with Brazil is not the bubble bursting, but it being burst before it even starts. What will burst the bubble for investors is demand and prices being unreasonably inflated without the real demand to back up these claims. Clearly, sellers have to try and create a demand and sell the alleged benefits of investment,but there are degrees in how you go about this and I think that inflated and incorrect claims about "easy access" are not, in the long term good for you or your potential investors as there will e a stage in the game when the "stark realization" will occur. I find it quite amazing how you indulge in telling people to do their "due diligence" when you haven't done it yourself. This is going to bring me a lot of flack, but I am a serious investor and claims like this are not good for the long term market and others less cynical than me might believe you. Boom and bust is no good for anybody, least of all or Agents that have to explain to their original buyers why they are dumping properties at a lesser price than than they had predicted.

[Golfingworld]

"Due Diligence" means that a purchaser, be it of a business, business asset or personal asset obtains proper and correct analysis of the commodity being offered for sale. This is normally undertaken by experts, accountants, auditors, merchant banks or secialists in that field. That diligence means not only the financial analysis and audit, but intangible assets such as goodwill. In the case of property for investment purposes that "due diligence" means a proper and correct study of the overall propostion. Property offered on a specualtive basis, for potential investment gain, means that a capital gain is expected, based on two factors, asset value increase and income from rental to offset against purchase costs or overhead costs. So, this proposition is totally related to potential demand in the market place. This demand can only be there is there is smooth, simple, easy and cheap communication to bring both "renters" and more purchasers to the market. It is know in laymans terms as "supply and demand". There will be no real demand if consumers cannot get there easily and at the right price, as they will neither be willing to buy nor to rent. But, more importantly, you claimed "now", not in the future. You also claimed extensive research into Brazil and quoted Fortaleza "region" specifically.These direct flights that you claim, neither exist now, nor did they exist 6 or 12 months ago...so how good was your extensive research? In my book, this is what is known as "talking up the market" and as we all know, that is why properties in Spain are now worth 20% less than what people paid for them! You talk up as much as you want, but how good is your advice if you can't even get the flight situation correct? Furthermore, there is no direct flight (from the UK), be it charter or scheduled to either Fortaleza, nor Natal for the next 12 months, apart from a one off Thomson Charter. Please see my flight thread on how this is also very restricted. So, in the next 12 months only 350 people a week and only until April 2008 can go direct from Gatwick to NE Brazil! Of 350 people, more tha half are going to "all inclusive" Thomson Hotels and not to stay or buy "off plan" properties. I don't have a problem with being told "this aint going to be easy,but if you fancy a punt, this might be a good one". What I do have a problem with is being told that all I have to do is walk out of my front door and bingo, I am in Brazil for easy money.

[Golfingworld]

So then please tell me which airlines, from where and what time were flying to Fortaleza at the time of your post on your website? At no time in the last 12 months has any airline, be it charter or scheduled flown from Manchester or Gatwich to "the Fortaleza region". My intention is not to get your back up, it is to dispel wild statements about the property market in NE Brazil If you din't think flights to Fortaleza were relevant and relevant to the overall proposition, why mention it so clearly. You know as well as me that communications are vital to the alleged capital gain that will be made. I am dealing in facts and just because I challenge your claims, doesn't mean i want to get your back up. What it means is that I am challenging "wild and innacurate statements" about the real potential of this market. If your flight statement wasn't wild, please prove it, beit for last year this year or next year. If you can't prove it, please don't say it. Water has a way of finding its own level you know.

[Golfingworld]

Hi Dee, never mentioned nor indicted you..misunderstanding. I quoted my thread on trying to book a flight to Natal with Thomson and it failed as they won't take bookings over 2 weeks. It seems that all threads lead back to me and flights. Nobody wants to see flights as relevant when they realise that it is easier and cheaper to get to Katmandu than Natal. But when they want to sell you a "dream in NE Brazil" everyone from Lindburg, Freddie Laker and Branson is setting out from Stanstead to Natal.

[Golfingworld]

[quote=LisaNic;11590]

Originally Posted by Golfingworld

So then please tell me which airlines, from where and what time were flying to Fortaleza at the time of your post on your website?

In Nov 2006, there was charter options available to FOR with MYT and to NAT with TOM. Source galileo/sabre and amadeaus GDS.

Have you thought about putting in for The Nobel Prize for Literature? Wrong! Thomsonver flown for more than 6 months, Nov/April, one flight weekly and only ever from Gatwick, not Manchester, whilst My Travel cancelled their flights, due to the fact they have been insolvent now five years and kept afloat by those professionals that are so good at "Due Diligence". As you know, they have now merged with T Cook and they also cancelled their recent flights to Brazil and that was to vador 600 miles away! Not the "Fortaleza Region". Read "trip advisor dot com" and see the quotes from disgruntled tourists.

As for the future, there isn't a flight to Fortaleza in the next 12 months..so will you amend your website to say "currently NE Brazil is difficult and expensive to get to, minimum cost is over £500 but once we have created the stampede, we are hopeful that this price will coe down"!

[deedee1]

Hi all,

GW- YET AGAIN THIS IS A HOTSPOT FORUM??? As much as I appreciate your dedication and passion about the subject of direct flights there is a thread for it SPECIFICALLY!!!!

Regarding you mentioning earlier in a post about being re-moved from other threads and placed onto the flights thread- I was the one who moved the posts to keep the correct topics in the correct locations???

The debate on flights does not need to be spread across the entire brazil forum- as there is more to life than just this subject!!!!

Will be back soon to catch up on the gossip!!

See ya D

P.S- I do admit GW you have definately spiced up the forum abit!!!!

[Golfingworld]

Originally Posted by LisaNic

GW - where in this post (which is the post you are quoting if I am not mistaken) do I mention flights to fortaleza? Pls advise as i am a little stunned!!!

Dee, sorry I am getting a bit mixed up here with my replies and typing...never mentioned your post but was referring to my post about Thomson tweeking flights sales, so you can't book more than a 2 week flight. Thanks for the spice remark....oddly it wasn't my intention, but when I read so many property websites with so much garbage on them I feel I needed to respond. Yes I am controversial, but only because I am passionate about this market and unadulterated bullxxxx is no good for anyone. Not that I am "The Cape Crusader" but there might be someone out there raiding their Granny's piggy bank in the hope that they can jet off from Manchester to Fortaleza for £300, to collect their 1000% profit.