Blindness and stupidity when investing in Brazil

[Dotty]

I mean Joao Pessoa is 2hrs or so on a coach,so how long is Sergipe?Joao Pessoas lovely but it is really small and very provincial (slightly more than Natal)and these are words form the locals.If you like beaches then Ceara and Maranhao have the best remote beaches in Brasil.If you like a touristy beach then Ponta Negra.If you like a quiet beach where you can walk and barely bump into anyone then go to Maxaranguape not very attractive but you will not see a tourist for now or Maracajau.Very basic amenities and be careful of hygiene standards in this part of the coast.

Originally Posted by Raimundo

I have no experience in Aracaju but what I do know, from reading information on the Web--there's a lot of potential there and Mr. Mullins is on the right track. Every guy and his brother is raving about how great Joan Pessoa is, or how great Natal is....well, IMHO, I think those places are overrated. I like the fact that Aracaju is new blood, and it's fresh.

Sergipe is a breath of fresh air!

[michaelbush]

Much depends on what lifestyle you look for. In my opinion João Pessoa is really a very good place for permanent living. The beaches are really clean, and the beach bars are really wel kept and clean, don't charge the earth like Ponta Negra, and the food is much better. Less tourism but I like that. I still have to visit Ralph and learn about Aracajú. Natal is where the publicity is, but I like to discover the real Brasil without the hype!

Originally Posted by michaelbush

I like to discover the real Brasil without the hype!

Mr. Bush -

My sentiments exactly, and well said sir!

[Dotty]

I think I wrote in the wrong thread as there are threads that are quite similar.
Quoting :Place in the sun article .Off plan purchase:
This gentlemen bought an off plan property (work is still in progress)The purchase price in 2007 was 50,800 stering(170,000 reais)for 56 mtrs in Ponta Negra.He put a 17,000 streling deposit down and additional costs of 3,576 stering and 6,000 sterling for a FURNITURE PACK.hE SAYS THE CURRENT VALUE IS 60,000 sterling and that he is expecting 20% increase in 5 yrs with a projected value of 155,000 (600,000 reais or there about.The property he is talking about is still selling for the same price and there is no way in a million yrs 56 mts will be worth that.Infact if you convert the money today then 1,000s has been wiped off his original purchase as he paid in reais and it is strong plus he did not add up his total expense which amounts to just over 60,000 sterling.Another off plan miss.............and he gave all the usual sales banter.Deary me.

[NewYorker]

Originally Posted by RalphJ

You couldn't be more correct surfingbrazil...it amazes me that numbers of people that can and do actually fall for this type of thing. When I see people/companies marketing such projects the first thing in my mind is "Keifer Robins" and company!!

Ralph I cannot agree with you more about the crime rate in Natal. I have been there and to other cities in Brazil especially the northeast. After experiencing Natal a few times I have no desire at all to return ever again. Most of the Real Estate People there I encounted were liars , crooks and cheats.
As of lately prices are getting quite ridiculously high as well for small places with small lots . Very crowded and Natal is in bad shape as far as I am concerned.
Joao Pessoa was much much nicer but prices there have risen as well and become just almost as ridiculous as Natal !!
All the areas in around Rio and Sao Paulo are always being given a really bad rap like the areas in NYC. BUT go out of town a bit and you will find some great deals in some very safe areas along the coast.
Cost to get there much better then Northeast and better flights and travel times as well.
I was once a Lover of The Northeast but have since found much better areas in the south now.
Too too much B.S. in the northeast !! You have a better chance of getting a good deal in New York !!!
Good Luck to All and BEWARE !!!

[Christopher Jewell]

Hmmm, interesting thread. From my point of view - I'm getting valuable information that either confirms what I imagined, or enlightens me. As a gringo, I'm extra cautious about dealing but my future location in Brazil isn't even determined yet. I only know Sao Paulo - and that's limited. Keep up the good work (ya'll), I looking forward to exploring the possiblities. Rio will be my first visit out of SP - Business 3 days - this month. I'll try to tour the coastal cities on junkets but I've decided Florianopolis will get my first week-long visit. I probably won't go until August and probably the worst month weather-wise but that can't be helped. It's back to Florida in September (again, the worst month) until (ohh,) this time next year. How the market plays out in the next two years doesn't appear to be at my advantage, actually - but I'll make the plunge. Brazil economy looks bright in the near future but that just increases prices. With the bust in the US housing market - it's actually a good time to buy. But I suspect US prices will (still) be more than buying in Brazil.

[NewYorker]

Hi Christopher,
I live in Florida in Boca Raton. Dp you have a place in Florida as well ? As far as prices here they are coming down but it is getting crowded and they will go up again especially in choice area. However the cost of living is ever rising as even in Brazil but much much higher here as I am sure you know and then there are these ridiculous TAXES !! However with all that said I think you are wise to look for a place in Brazil which I think you will do much much better with in the short term and even very possibly in the long term as well.
I would try and stay away from the areas frequented by gringoes though as you aew sure to pat a much higher price for much of the same if not less in Brazil and in the northeast you may even get ripped a bit more.
I am totally turned off to the over publicized Northeast now after spending so much time there. Ite can get quite humid at times and other times the raisn are quite bad ( getting worse ) and the place floods out very quickly especially by the beaches.
Travel expense and times are much more favorable to Sao Paulo and I suspect they will remain so if not get even better.
My opinion of the northeast is that is was a place not so long ago where people and especially developers could buy land cheap , build small bad houses on it and bill it as prime oceanfront property to gringos trying to compare it and their prices to American and European Properties which are supposed to be similar. A very similar situation has cost more then a few New Yorker's and Northerners here in Florida in much the same way as many of them think they are getting a great deal here and a much bigger house for their $$ out west only to find out they are actually in the boonies 10 miles from the nearest beach , bad schools , and the mosquitoes and the everglades for neighbors.
To many gringoes try and take the cheap, cheap road in Brazil. As they say and this goes for whatever Country you are buying in " You get what you pat for " and " If it sounds good to be true it usually is !! ).
I truly believe that the coastline in the Sao Paulo area will be much more fruitful in Brazil's Future then the northeast as things are changing there now.
Just a few of my thoughts I wanted to pass along to you.
Keep in touch please
Richard

[Christopher Jewell]

I have a good location in StPetersburg - 900 sq/ft 2bdrm 1bath (add) 1 car attached garage w/fenced rear yard 75x100 standard. It will finance my next purchase. All I can do for now is watch the market and look for my preferred location. My Namorada is from Salvador and.. WAS ..anxious to return someday, but she seems less interested lately. I am looking for Hawaii in Brazil without mosquitos I guess. The southern region appears to be more affordable all around and is a gentle distance from the Equator. StPete has abundant beaches that I ignore except for a short sail from time to time, so beaches are not my 1st priority - mild weather is.

[debzor]

Originally Posted by NewYorker

Hi Christopher,
I live in Florida in Boca Raton. Dp you have a place in Florida as well ? As far as prices here they are coming down but it is getting crowded and they will go up again especially in choice area. However the cost of living is ever rising as even in Brazil but much much higher here as I am sure you know and then there are these ridiculous TAXES !! However with all that said I think you are wise to look for a place in Brazil which I think you will do much much better with in the short term and even very possibly in the long term as well.
I would try and stay away from the areas frequented by gringoes though as you aew sure to pat a much higher price for much of the same if not less in Brazil and in the northeast you may even get ripped a bit more.
I am totally turned off to the over publicized Northeast now after spending so much time there. Ite can get quite humid at times and other times the raisn are quite bad ( getting worse ) and the place floods out very quickly especially by the beaches.
Travel expense and times are much more favorable to Sao Paulo and I suspect they will remain so if not get even better.
My opinion of the northeast is that is was a place not so long ago where people and especially developers could buy land cheap , build small bad houses on it and bill it as prime oceanfront property to gringos trying to compare it and their prices to American and European Properties which are supposed to be similar. A very similar situation has cost more then a few New Yorker's and Northerners here in Florida in much the same way as many of them think they are getting a great deal here and a much bigger house for their $$ out west only to find out they are actually in the boonies 10 miles from the nearest beach , bad schools , and the mosquitoes and the everglades for neighbors.
To many gringoes try and take the cheap, cheap road in Brazil. As they say and this goes for whatever Country you are buying in " You get what you pat for " and " If it sounds good to be true it usually is !! ).
I truly believe that the coastline in the Sao Paulo area will be much more fruitful in Brazil's Future then the northeast as things are changing there now.
Just a few of my thoughts I wanted to pass along to you.
Keep in touch please
Richard

NewYorker - I know Boca well and still have a property up the road in Royal Palm Beach, although I have not visited for a long time. Are things picking up there yet?

I now live in NE Brasil, but not near Natal - and there is an awful lot more to NE Brasil than just Natal, as I am sure you know...!

[NewYorker]

Congratulations on your success and thank you for correcting what was merely a typo on my part. I make quite a bit of them.
I have many many friends who are Brazilian here in the United States who have always advised me about Brazil. I have to say for the most part I trust them very much and most are very knowledgeable as well.
Miami I don't know . . . . . I think I'd rather go back to my beach house in Amagansett New York on Long Island before I did that or my home in ( rented now ) in Brooklyn Heights.
I find many areas in Brazil very nice and I do love the people. I think it would be a great place to retire and escape the ridiculous taxes we are made to pay here not to mention the rising cost of living as well. I just hate taxes , don't you ? One thing I love there is the cost of laborers and domestic help not to mention the loyalty some have towards their employers.
I have to admit I have never even been to Rio except for a short time changing flights there from time to time nor would I ever really want to live there.
I do have a friend from Fort Lauderdale who just bought a beach house last year about an hour north of Rio at an extremely reasonable price. He Loves it there and has no problems to date living there nor making his deal there. As a matter of fact he is already thinkiing of buying some rental property near his place there as well. This is no street smart guy either but a simple guy who sold his internet / cell phone business in Pennsyvania. He also has a fantastic Penthouse apartment off Hallandale Blvd overlooking the intracoastal and the ocean here in Florida.
Most people aren't as fortunate as you think you are and many others are nearing retirement and facing days where they will be earning much less once they do.
I have a Cousin who is very Big in Real Estate in New York who owns a High School he rents to The City of New York, 2 Parking Garages in Manhattan, a Huge House in Admiral's Cove in Jupiter which is empty most of the year and another Huge House in East Hampton on Long Island not to mention a very successful shopping center on Long Island as well on Sunrise Highway. He is presently building 72 3/2/2 townhomes in Hauppauge Long Island Area ( but in no hurry he tells me these days ) as well as opening a New Bank with a Couple of Friends on Long Island.
Just yesterday knowing that I travel often to Brazil he called asking me many, many questions about Brazil because in his circle of associates and friends they are very much interested in building large projects there now even more so then here in Florida.
You seem to think Florida is going to go back to where it was in 3 years but they seem to think it will begin to snap back by then and maybe snap is the wrong choice of words here. They think by then it may begin to turn around at a slow pace if any. Remember there are still many , many places out there that will be foreclosed on in the next year or two which will be added to present inventory lowering prices a bit more.
These guys are no spring chickens or any where near 40 years old but they have been in Real Estate forever and a day since they were in their early 20's in New York City .
Taking all into consideration we are very fortunate here in the State of Florida not to have had a Hurricane the past two years. If we had things would have become much worse here I think, but then what do I know amongst all these professional of which I choose to listen to the older and wiser guys from New York.
They are so interested in fact they are flying down to see me and checking on what it will take to fly to Brazil on their private jet. Wow, that will surely be a thrill even for me not having to wait in those lines :O)
In case you haven't learned or heard The First American Title Company now trusts Brazil enough to Issue Title Insurance there on lands bought by gringos. I saw this in a Real Estate ad for a property in Brazil, checked it out personally and it is true they do issue title insurance policies and will represent you in court there as well if you have any problems at their expense not yours. A friend of mine has worked for them for 35 years and even he didn't know this . He had to check it out for me and got back to me with all the details in less then an hour. Another friend of mine actually bought a beach front property in Brazil's Northeast and they did it for him. That was two years ago and he has since found an area he likes even better near Sao Paulo. When he bought the exchage rate was 3.20 reais per US dollar when he sold for more then what he paid two years later he made about a 40% profit and sold it to an American when the exchange rate was only 1.68 reais per US Dollar. You can do the math he did very little and did very well in just two years there . . . . and no problems at all. Maybe the problem is Rio ? He has since bought another place and is starting to build and is thrilled with paying less then $40 US Dollars a square foot for a Great Place with everything !!
Take Care and contuinued success
Hope I did not make too many typos this time I tried not too :O)