Blindness and stupidity when investing in Brazil

[surfingbrazil]

Good morning everyone

Reading some of the posts here I must say I am surprised by the degree of stupidity some of these “investors to be” have.
First allow me to introduce myself: comprehensive professional experience in Brazil, 100% fluent in Portuguese, owner of a couple of apartments in Natal RN.

When I see common investors going into “off plan” projects of 25.000 units, 10 resorts or 4 golf courses, all this spiced with new airports, marinas and so on… I am simply shocked.

First of all let us put things into context:

1.
BRAZIL IS NOT A MAJOR TOURIST POWER. In fact, despite the beauty and other real assets of the country, Brazil ranks as no. 33, with arrivals at the level of countries like Sweden or Dominican Rep. No way such complexes are going to be filled (if ever concluded) with golfers and other tourists in a foreseeable future.

2.
BRAZIL HAS A HIGH LEVEL OF CORRUPTION, ranking as no. 62 in a list of 160 countries with a score of 3,7 (no. 1 being the les corrupt, with a score of 10). Certificates, deadlines, advice of lawyers, contracts and justice have a relative value there.

In addition, the level of incompetence and bureaucracy is difficult to imagine for somebody who has not worked there.

Gamblers, be blinded by smart web sites and go on with these science fiction projects.

No Gamblers read this:
do not buy anything just to get a rent, buy an apartment only as a long term investment and only if you like spending holidays in Brazil. You may cover expenses by renting to colleagues and friends, but do not count on it as a part of your budget.
Buy something that exists and can be valued and assessed.
Or, taking a risk, buy “off plan” ( “na planta”) only in major cities carefully selecting the project and only if this aims at Brazilians. Do not believe any mumbo jumbo guaranteeing rental income.

I know what I am saying. Should anyone need advice in Rio Grande do Norte Natal: varatraza2000 in the gmail.

Good luck

[KDJX]

Whoopie do ..... that's brought us down to earth with a bang !!!

I think I'll just move there instead a rent out my house in the UK (my cunning plan all along) !!!

K

[surfingbrazil]

I do not want to argue with sellers.

I did not say, “ do not buy in Brazil”, peruse the post, please. I do own property in Natal

By the way, check your CURRENCY QUOTES; USD / BRL = 1,73
(And not 2,50 as you write)

About the new airport in Natal….. please give me a break !
This is the kind of intoxicating mumbo jumbo sellers often present. First of all it is only political wishful thinking and it will never be ready by 2009.
If ever built, it will not have any relevant impact in the tourist traffic to Natal because the existing airport, Augusto Severo Int. Airport, is excellent and operates only at 25% of its capacity.

[michaelbush]

I was speaking to a brasilian yesterday in Natal, and he says that now the world cup 2014 is coming to Brasil all the political groups are keen to get the airport constructed. He believes that they will now get the funding into place and that the new airport will be ready a year or two before the world cup in 2014. Guess it is wait and see. Most of these ambitious projects are politically driven, hence the speed up of work on the new bridge before elections last year!

[RalphJ]

a couple things are kind of funny to me because I see them ALL the time. All of these mid-size northeastern cities, whenever you see agents trying to sell them to gringos, you always see..."coming soon...international airport, flights direct from London, Barcelona, etc!" And the other is the ole "guaranteed rent" horse****. Ole Keifer Robins was a master at that.

[beenthere]

Originally Posted by RalphJ

a couple things are kind of funny to me because I see them ALL the time. All of these mid-size northeastern cities, whenever you see agents trying to sell them to gringos, you always see..."coming soon...international airport, flights direct from London, Barcelona, etc!" And the other is the ole "guaranteed rent" horse****. Ole Keifer Robins was a master at that.

Since you are a believer in the truth, please offer the proof that none of this will happen ????

Also provide references as under-hype is just as bad as over-hype ....

[beenthere]

Originally Posted by surfingbrazil

I do not want to argue with sellers.

I did not say, “ do not buy in Brazil”, peruse the post, please. I do own property in Natal

By the way, check your CURRENCY QUOTES; USD / BRL = 1,73
(And not 2,50 as you write)

About the new airport in Natal….. please give me a break !
This is the kind of intoxicating mumbo jumbo sellers often present. First of all it is only political wishful thinking and it will never be ready by 2009.
If ever built, it will not have any relevant impact in the tourist traffic to Natal because the existing airport, Augusto Severo Int. Airport, is excellent and operates only at 25% of its capacity.

Why don't you provide a source for the 25% figure?? It's funny that in another thread about flights someone quoted that the figure is totally different and there is a reference to a govt. site saying so, so please provide the proof.....

[JMBroad]

::. INFRAERO - Aeroportos Brasileiros

Maximum capacity for Natal airport = 1.5 million passengers

January to September 2007 YTD figures: 1.156 million passengers

January to September 2006: 1.039 million passengers

Final Year end 2006: 1.391 million passengers

Estimated Year end 2007 based on YTD performance: 1.547 million passengers

[RalphJ]

Originally Posted by beenthere

Since you are a believer in the truth, please offer the proof that none of this will happen ????

Also provide references as under-hype is just as bad as over-hype ....

Huh? Please provide proof that none of this will happen? What kind of meds are you taking? I'm saying that I've seen this in NUMEROUS mid-size brazilian cities, their state and local politicians always coming out saying that..."soon we'll have international flights" and it just doesn't happen. They've been saying that here in Aracaju for 5 years now and we're not any closer to getting international flights than we were 5 years ago!

I then commented about the "guaranteed rent" spiel. As most of us know that's nothing more than overpricing property and giving one back his own money.

I absolutely didn't understand your question at all. Please provide proof that none of what will happen? It's kind of hard to provide proof of a negative, or that an event "won't" happen. "Please provide me proof that a man will never go to Mars...."

"beenthere"....what's your problem buddy?? Ya know, it's assholes like you that when I see groups of gringo's that got screwed, I think to myself, "well, some of them deserved it."

[JMBroad]

Originally Posted by RalphJ

"soon we'll have international flights" and it just doesn't happen. They've been saying that here in Aracaju for 5 years now and we're not any closer to getting international flights than we were 5 years ago!

Just from looking at the official figures though, that's like comparing apples and oranges. Unless the official figures are wrong. Last year International arrivals in Natal were 18% of the total, international arrivals in Aracaju were exactly 0.0014% of the total. Natal arrivals were almost 1.4 million, Aracaju were under 600 thousand

This time last year, 84 international passengers had landed in Aracaju. So far this year, 4(!?) have landed?

This last figure leads me to believe that the official numbers from the government must be wrong. Either that or you don't use the airport much yourself.

Either way, those 4 are hardly comparable to the 170.000 international passengers which have landed in Natal so far this year.

Under that light, do you think that because it didn't happen in Aracaju, it won't happen in Natal? I mean, just reasonable doubt...