Buying Hotels and other Commercial Property in Brazil

[cwashiii]

I would like to know if anyone has invested in a hotel or restaurant business in Brazil. If so, how did you fund it? How is it for "gringos" owning a hotel in Brazil? What is the labor force like?

[debzor]

Originally Posted by cwashiii

I would like to know if anyone has invested in a hotel or restaurant business in Brazil. If so, how did you fund it? How is it for "gringos" owning a hotel in Brazil? What is the labor force like?

Here in the Northeast I know a British guy who has bought a freehold property with the aim of converting it into a bar and rooftop restaurant. But in places here the market is very undeveloped and expertise from abroad is broadly welcomed.

Finance has to be all cash as there are no mortgages available to you.

I have always found gringoes most welcomed by the locals as they are a source of job creation and thus comparative wealth. For their part the locals work hard, long hours six days a week.

[michaelbush]

Originally Posted by debzor

Here in the Northeast I know a British guy who has bought a freehold property with the aim of converting it into a bar and rooftop restaurant. But in places here the market is very undeveloped and expertise from abroad is broadly welcomed.

Finance has to be all cash as there are no mortgages available to you.

I have always found gringoes most welcomed by the locals as they are a source of job creation and thus comparative wealth. For their part the locals work hard, long hours six days a week.

You fail to mention too that the wages they get for these long hours is a pittance!! Many work for minimum wage (380R$ month) or little more. Whilst the employment costs for an employer can be substantially higher with the "decimo", social security etc, the employee will probably welcome the "gringo" employer since we have more of a tendency to treat employees fairly. In Brasil the "ugly" face of capitalism is at its worst!

[debzor]

Originally Posted by michaelbush

You fail to mention too that the wages they get for these long hours is a pittance!! Many work for minimum wage (380R$ month) or little more. Whilst the employment costs for an employer can be substantially higher with the "decimo", social security etc, the employee will probably welcome the "gringo" employer since we have more of a tendency to treat employees fairly. In Brasil the "ugly" face of capitalism is at its worst!

Yes, I was only referring to those locals employed by gringoes, not trying to make a political statement!

I have found that many of these locals earn (and cost) substantially more (effectively around 575R$ per month) as this is the basic requirement to prove that they are actually employed by the investor, and this may assist in 5 years time when their visa is reviewed.

[cwashiii]

Great answers guys, but I'm still trying to find a person who has actually purchased a business. Are most of the people in this forum associated with Northeast Brazil? I'm trying to get more information on the larger urban centers, mainly Sao Paulo.

[debzor]

Originally Posted by cwashiii

Great answers guys, but I'm still trying to find a person who has actually purchased a business. Are most of the people in this forum associated with Northeast Brazil? I'm trying to get more information on the larger urban centers, mainly Sao Paulo.

I, like a few others on this forum, have purchased a business here in Brazil, and now live here permanently. But in the Northeast! This is because we anticipate to receive better returns from our investments in this area, as we believe it has the best potential, let alone a fantastic climate, and is a nice, relatively secure place to live with friendly people!

You are, of course, welcome to join us!

[Goldmann]

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