A Couple "Musts" and "MustNots" When Investing In Brazil

[Dotty]

I am not an agent and have never been interested in being an agent,what I am interested in is the property market and have been for a number of yrs a solid investor and as Tims interests are the same as what I have always invested in(read my previous posts) I decided to offer him some free advise that means (without a fee),but now he can look and make some crappy investments.

If I were an agent I would be giving the crap banter,booming Natal,marvellous place to invest,increase 40% ,bla,bla,bla,but you will not here any of that .From a sound and secure investor

Originally Posted by robh

I ike the "I am not an agent" bit. It all makes sense now.

Great topic Ralph.

If I can give any advice on 'Must Nots' when investing in Brazil... is trust very few people - Brazilians and Gringos alike.

[michaelbush]

I have been ploughing through all these posts over the last few days as I have been very busy with clients and no time to catch up.

I have for years in Spain advocated the investor buy to let or to sell market should be for the local market rather than for the overseas market. Strategy was proved there! Makes sense to me if I want income from the property, to buy somthing that is easy to let to Brasilians. If I wish to sell it there is 100% of the market available.

However the comments on what Brasilians want? that is more difficult! There are many rich Brasilians who are buying "life-style". The Rossi development behind "Extra" supermarket in Capim Macio (near Ponta Negra), have only a few apartments left now having sold out a development very quickly, mostly to Brasilians at prices from 600kR$ - 1mR$ (penthouse duplex), with floor space of 198m2. 4 bed suites, suite for the maid, etc, AC but still unfurnished regarding wardrobes etc. The show house is of course furnished.

[michaelbush]

If you really want to go cheap and get a good return and sales back to Brasilians you could of course consider the "popular house" . aorund 50-55 m2 on 200 m2 plots, typically 2 bed one bathroom, small lounge and kitchen and terrace. These are designed for the urban expansion plans and are priced to sell at just 53-63kR$!! Rental between 300-400 R$ per month. You would need a good few of these to make some money!

In the Zona Norte a year or so ago you could buy small houses in the "conjuntos" built on small 10 x 20m plots for 20k R$- now those same houses are around 60-70kR$, some even already 'reformed'.

Foreigners would rarely consider these as investments but the profit would have been greater!

Right now the smart money is going into the urban expansion land which is still rising in price rapidly.

[TimesAreAChanging]

Originally Posted by michaelbush

If you really want to go cheap and get a good return and sales back to Brasilians you could of course consider the "popular house" . aorund 50-55 m2 on 200 m2 plots, typically 2 bed one bathroom, small lounge and kitchen and terrace. These are designed for the urban expansion plans and are priced to sell at just 53-63kR$!! Rental between 300-400 R$ per month. You would need a good few of these to make some money!

In the Zona Norte a year or so ago you could buy small houses in the "conjuntos" built on small 10 x 20m plots for 20k R$- now those same houses are around 60-70kR$, some even already 'reformed'.

Foreigners would rarely consider these as investments but the profit would have been greater!

Right now the smart money is going into the urban expansion land which is still rising in price rapidly.

Urban expansion land you say. What do you mean by this? And which cities in particular? on this forum there is nothing about rio or sao paolo, or cities like that, this makes it even more interesting to me. semms there is not much hype concerning those cities or cities of similar type. What do you think?

[robh]

Originally Posted by TimesAreAChanging

Urban expansion land you say. What do you mean by this? And which cities in particular? on this forum there is nothing about rio or sao paolo, or cities like that, this makes it even more interesting to me. semms there is not much hype concerning those cities or cities of similar type. What do you think?

I can answer that for you, what he means is land on the edge of cities and close to areas of development like the new airport in Natal. Land banking is the proper term for it.

[Dotty]

Hello Micheal!

The apts you are speaking about ARE adorable and my architect is the same architect that fitted out the show flat for Rossi,but she is insiting that we use natural air as much as possible ,but also air -conditioning which I hate,yuk!Hope you are well and we must meet for the beer soon.You can email me .

Originally Posted by michaelbush

I have been ploughing through all these posts over the last few days as I have been very busy with clients and no time to catch up.

I have for years in Spain advocated the investor buy to let or to sell market should be for the local market rather than for the overseas market. Strategy was proved there! Makes sense to me if I want income from the property, to buy somthing that is easy to let to Brasilians. If I wish to sell it there is 100% of the market available.

However the comments on what Brasilians want? that is more difficult! There are many rich Brasilians who are buying "life-style". The Rossi development behind "Extra" supermarket in Capim Macio (near Ponta Negra), have only a few apartments left now having sold out a development very quickly, mostly to Brasilians at prices from 600kR$ - 1mR$ (penthouse duplex), with floor space of 198m2. 4 bed suites, suite for the maid, etc, AC but still unfurnished regarding wardrobes etc. The show house is of course furnished.

[Dotty]

Hello timesarechanging,

There is a nice place called Macaiba,that is a bustling town and plenty to keep you busy.
I forgot to mention Mae Luiza,very well localized and close to the beach.

[TimesAreAChanging]

Originally Posted by Dotty

Hello timesarechanging,

There is a nice place called Macaiba,that is a bustling town and plenty to keep you busy.
I forgot to mention Mae Luiza,very well localized and close to the beach.

Thanks Dotty,

can you give me more info? If you are an agent I don't mind really, but if you give me more info I might visit those places check them out, and if I like them I#ll be fair to you too, because you proposed them. This is my style. Good business is always longterm, same with relationships. I'm not proposing any relationship though, except if you are a good looking girl.

[michaelbush]

Originally Posted by Dotty

Hello timesarechanging,

There is a nice place called Macaiba,that is a bustling town and plenty to keep you busy.
I forgot to mention Mae Luiza,very well localized and close to the beach.

Hi Dotty - You are so funny!! Times- Dotty is playing with you, Mae Luiz has a lovely beach in front of the worst favela in Natal!!! Along the beachfront part it is called Areia Preta and the condo blocks are mostly owned by rich, but you will NEVER see them on the beach there! But the Green Village condo (houses up to 2m R$) is considered exclusive in Natal but nit the prettiest area, and the Green Club condos 1 2 &3 is much cheaper and plots can cost around 60k$, where you will have to build a minimum 150 m2 and possibly 200+ m2 house to conform. We do have plots there for sale. Again mainly for Brasilians and therefore meeting your 100% of the market idea.