Please Be Careful

[nigelallen]

To be honest im amazed that some people are asking other people about how much they think they will receive in rental from certain projects they have bought in to, and asking about how to open bank accounts
etc., all this should have been sorted out before they even thought about buying a property,
The trouble is their is so much hype about brazil and people are blinded, a few classic examples,
phase 1 sold out, 10% price increase in 2 weeks, get in quick were selling 10 a day, guaranteed 10% rental for 3 years (which is paid by the developer out of YOUR MONEY) a lot of people on here i would say are are agents, just remember these agents are not like the ones in the uk who get about 2% or 3% to sell a property, they get between 10% and 15%, also remember a lot of these agents have never set foot in Brazil.

And watch out for the property seminars, i have been to several i have been told many untruths by these people their just after the sale, end of, and they will go to any lengths to get it, anyone been on an inspection trip? you will know what i mean.
Never take any notice of people telling you what's being done next year, because most of the time that next year never comes.

My advice to anyone thinking of buying in Brazil
go to the place at least 4 times during the year get a feel of the place, if your conformable and like the place start doing some research, check the local property prices against what your buying, you will soon know how much local houses cost, per m2, compare it with what you are paying for your property, remember mortgages are very limited in Brazil and very often locals will bite your arm off at an offer 20% less than what they are asking,
Is their good transportation to the area? go to hotels and pousadas find out how full they are, see what the demand for rental is in the area, at different times during the year.
find out what the running cost of your property is never accept the old "the condominium charge is going to be around $R200 a month, but its not been set yet, you want to know exactly what it is, on top of the condo charge you have the utilities bills and tax on any profit, how are the company going to pay you your rental profits (if their is any) through your uk account? check your not going to pay double taxation, and remember if you do get a bank account in Brazil every time you move any money your taxed 0.38% thats every transaction, paying money in , paying a bill, its not a lot i know but it all adds up.
I could go on and on but this is all basic research, im just a bit shocked people are going in Blind, some people investing their life savings, for Gods sake please do proper research, never believe anything people say, find out for your self,
I think people will make money in Brazil but not what the hype is telling you 30% plus a year ita absolute rubbish, i think if you hold your investment for 10 years you will do nicely, but its not going to happen over night, my old granddad, bless him, used to say "any fool can earn money but it takes a wise man SPEND IT

Regards
Nigel

[Magellan]

very wise advice, not just for Brazil but for anyone buying anywhere

[deedee1]

Hi all,

Brazil has its land issues so does every other country all over the world!!

Brazil is a relatively new player in the property market that has grown significantly over the last few years and will not slow down for the next few years!!

Like everything there are learning curves in life and they need time to re-adjust to the influx of property transactions that are taking place and tidy up and reign in the laws, regs and procedures and this takes time!!

SPAIN- As an example yet again mature market-has been for years but has the worst land grab and title deed issues and they are in the EU-Just proves a point!!

BULGARIA- Issues with illegal builds- Now in the EU and are tearing down the 2,000 illegal builds they have there!!

ITALY- Problems with title deeds and debts left from old owners that are tied to the current owners property- that the new owners have to pay for!!!

I could go on...and on but you get the picture!!

So brazil is not the 1st and surely wont be the last to have these problems!!

See ya D