Investing in Brazil

[PAUL-brasil]

[QUOTE=PeixeGato;15124]OK, I think I got it Paul, but let me clarify...

What do you do with this money while waiting for your Brazilian bank account to be set up?

HI greg, Just answering your Questions from earlier.

I am happy for my contact to hold the money til i my Brazilian acc is set up and save it in his brazilian acc, even better for him as he can keep the interest growth, because i visit brazil at least twice yr i collect my money from him and spend it on my holiday which saves on money exchange for when on my hols. When my investment business acc is complete my contact would put into my acc at his lesuire any rentals he has gained for me and rentals from my internal advertisments would go straight to my acc in Brazil and then inform my employee (the housekeeper) by telephone to allow them at the required dates, i would prepare my information on paper in portuguese to inform the housekeeper the info then tell my in portuguese, if i find that my basic portuguese is still not effective then i would have my contact to organise it and will have to pay him the 20%. Basically i wish i had set up the Business acc before i bought the villa as it is much more efficent if you advertise in the way i have suggested.



Yes correct, anyone outside brazil would go straight into my UK account whether they english or not as internation bank fees are very cheap comparing the brazilian banks and it will be tax free leaving the brazilian bank out. Please bare in mind that my previous example is just 1 example, you can use many ways ALL AT ONCE to maximise your rentals, eg advertise yourself in both brazil and internationally so not paying agents if you can manage it. also use brazilian rental agents just like you would in the uk (20% is common) you must obviously make sure they inform you of every short term as well by email of cause but hopefully this method would get you long terms, also if you dont want a acc in Brazil then a company like that would offer a fully property management like pay your bills and save your money (tax free because that is normal) but would want a year contract with you. Then you could also use many international rental agents too who would use holiday companies, aquire the money then transfer to your uk acc, if these method is very successful then you dont want to be in a contract with property management so woul need some to pay your bills or have the acc in brazil, if this rental method is getting you just a few rents and are in a property mangement then you best just inform the property management co that your simply letting some friends stay on your behalf on the dates asuming thats its empty. So basically lots of ways all with different method.


Back to my orginal example, brazilians select my villa or in the future my apartment on the advertisment website and leave a message asking to rent, the website transfers the message to your email ad, you agree and ask them to transfer to your acc numbers to your brazilian acc just like you would in uk, or you could them pay a property management co instead if you not want acc, but of cause that will cost you the 20%. Already answered the next Q


Its best finding them in your area in person i think, see a few of them yourself, there are also some who are from europe but work/live in the area, i some few in Fortaleza. You can also find them on net of cause from here if your good at searches, there is a brazilian yel . co equivient but i can remember what you call it at the mo.

I oganised it with a european builder while i was there in July to get it started to choose all the deco and ideas etc, I pay half then he sent me pics to prove then pay 2nd lot, i also tell him if all good when i next see it then they would be more projects. If you had a propery management then they would help you with it as it also in there interest but that way would cost you a little more as they would want extra payment.



Eu falo so'mente algumas em portugues mas eu sou aprender mais e mais (means eu speak only some in portuguese but i am leaning more and more)
So far though i have always done business in brazil in english

Hope i have being a big help!

Regards

[PeixeGato]

Thanks for the info Paul,

I wonder if you could set up a PayPal account to have renters pay into for rentals. Anyone have any experience with this? If it is possible, it would be a very easy way of collecting rents. Of course, paying the bills on the property is another matter.

Greg

[PAUL-brasil]

Originally Posted by PeixeGato

Thanks for the info Paul,

I wonder if you could set up a PayPal account to have renters pay into for rentals. Anyone have any experience with this? If it is possible, it would be a very easy way of collecting rents. Of course, paying the bills on the property is another matter.

Greg

Hi Greg,
Sorry i missed that Q and it is a good Q that i dont actually know as its something i havent needed yet and havent even thought of to be honest. But if later i am taking privaite bookings in to my UK acc then the paypal is something worth looking at and could be a good idea so nice one!

Also When I get on top of the investment acc in brazil i would set up my bills on direct debit just in the same way as in uk. But at the moment things seem well with my contact paying them, he makes like a statement for me and sends by email, eg rents income and any money i have sent to his uk acc which he takes the equivielent out in reais in brazilian at retail exchange rate, from his UK acc which he gets no charge (charges are normally 2% doing that but he says he doesnot get charged through natwest), then he deducts of the bills and wages, the elect bills, wages receipts are saved for me to check when in brazil.
Something i think i also forgot to add in my last mail to you was that if you were in property management contract in brazil be aware that some will try charge you 10% for paying bills and any wages for you on top of the 20% cut on rental incomes, eg elec bill R$100 your account with the property management could be deducted R$110. This still may be worth it if the comany was good and was getting you good long term rental to a villa or many short term incomes if in prime rental apt, but im just making people aware as i think would be common to gringo s so if you were ever to go with full property management then make sure you have contract in Eng.

Regards
Paul