Brazil Market in general

[rayb]

Hi guys,

I have properties in Morocco, Dubai and St Vincents.

Just Heard of this market recently. have no clue about the condition.

How is the market compared to other overseas markets?

what is pulling the investors towards Brazil?

any comments and suggestions very much appreciated.

Thanx.

[JMBroad]

1) Brazil economy - BRIC Report by Goldman Sachs - if you don't know about it, google it, there is a good video on their site. Make sure you read both reports, the one from 2003 and from 2004. Country economy improving significantly (unemployment and inflation at all time lows, economic growth remaining healthy) with all the expected benefits

2) Politically stable - Lula just won another term with a large majority win - country believes in their political leadership

3) Brazil investing in tourism and infrastructure to support tourism and FDI - budget increase from 8 million Euros in 2003 to 285 million in 2006 for improvements in tourism related infrastructure

4) Property prices increasing steadily - Huge growth in land prices as developers buy in bulk (at least in many areas of RN) - potential for growth of residential property is very high (on the right developments in the right location).

5) Climate, general "feel-good" atmosphere of a tropical country with low cost of living

6) Official Governement Goal is to increase the number of domestic tourists to Brazil by one third over the next 2 years - huge potential market

7) Official Governement Goal is to increase the number of international tourists to Brazil by 43% over the next 2 years

Summed up - basically it's cheap at the moment (as long as you buy the right product in the right area) and everything indicates that prices will increase steadily - Politically and economically the country is stable therefore investments should be protected and risk is reasonably low compared to other destinations - no terrorism, hurricanes or other natural disasters of note.

And in the worst case scenario you end up with a place in the sun where life is cheap and smiling.

You can probably tell I'm not in sales - that's just the way I view it - my opinion and the reason I'm going to invest there myself in the near future.

[michaelbush]

Hi Ray, From your post I gather you are an investor rather than someone who would like a holiday home. Before you make any decision, research carefully the opportunities and look for an exit strategy. Remember you cannot easily finance property purchase in Brasil (although I have just concluded adeal for a five year mortgage 70% loan to value), so it does restrict you regarding committing capital rather than borrowed money. There are a number of opportunities aimed at the investor which offer rental gurantees. Beware you are not paying to get your own money back! If you buy to let, then you should buy what the brasilians rent or buy so you have a wide market, and you should return very easily 7-10%, and as much as 12%. I live in Natal and specialise in the North East of Brasil, although we do have products in Salvadore for the investor. the market here has great potential but there are still too few international flights. They are trying to deal with that problem and hopefully there will be a new international airport some time within the next 5 years.

[robh]

Hi Ray,

We are selling a lot of property which are setup to allow you to both get a decent return and use your place for holidays (or just rent it out for longer to earn more).

The figures that we are seeing from similar older developments in the same area with a good rental history are between 8 to 12% return year on year. Capital appreciation is also excellent and with a local history of resales you can judge pretty accurately what your total returns will be when you sell on.

Regards,
Rob.

[debzor]

Hi Ray

No doubt by now you will have received many PMs, many I am sure offering you great deals, and many making all sorts of claims. I am not an agent nor developer - I am British, live and work here, and can advise you the of the pitfalls to avoid as well as one or two pointers once 'you get your feet under the table' so to speak!

Feel free to ask any question or PM in confidence - I have nothing to sell..!

[RalphJ]

Originally Posted by debzor

Hi Ray

No doubt by now you will have received many PMs, many I am sure offering you great deals, and many making all sorts of claims. I am not an agent nor developer - I am British, live and work here, and can advise you the of the pitfalls to avoid as well as one or two pointers once 'you get your feet under the table' so to speak!

Feel free to ask any question or PM in confidence - I have nothing to sell..!

Good advice Deb....and Ray hasn't received a PM from me.

[Dotty]

Returns are poor if you have poor adminstrators,which is the case here.Only one is excellent and thats Atlantica Hotels who have done an excellent job,but they only work with excellent companies not fly by nights.

Originally Posted by robh

Hi Ray,

We are selling a lot of property which are setup to allow you to both get a decent return and use your place for holidays (or just rent it out for longer to earn more).

The figures that we are seeing from similar older developments in the same area with a good rental history are between 8 to 12% return year on year. Capital appreciation is also excellent and with a local history of resales you can judge pretty accurately what your total returns will be when you sell on.

Regards,
Rob.

[robh]

Originally Posted by Dotty

Returns are poor if you have poor adminstrators,which is the case here.Only one is excellent and thats Atlantica Hotels who have done an excellent job,but they only work with excellent companies not fly by nights.

Are you saying there is only one good rental management company in the whole of Brazil!! That is nearly as funny as you saying that TAP is an excellent airline in the flight thread.


Very amusing...

[JMBroad]

Or that all Brazilian agents know everything there is to know and are always acting the best interests of foreign investors.

I think Dotty is letting off steam, having just found the forums. Hopefully soon he/she will cool off and provide us with some good info. Always good to have feedback from people on the ground.

[Seanlord]

Originally Posted by JMBroad

Or that all Brazilian agents know everything there is to know and are always acting the best interests of foreign investors.

I think Dotty is letting off steam, having just found the forums. Hopefully soon he/she will cool off and provide us with some good info. Always good to have feedback from people on the ground.

Probably best Dotty is ignored altogether.This is by far the most effective treatment for a sensationalist attention seeker.