Real Estate International - Help needed

[River_42]

Hi all!

I have never invested abroad before and I am not very knowlegeable in overseas property but it is something I have always been interested in. I saw an advert this weekend advertising Plots in Brazil from 9,000 pounds and it was this Coconut Grove so I am trying to do some research on it. I sent an email this morning and my questions were answered within a couple of hours...

They said they will be doing a price increase in a few days, they sent me an email brochure and some information on the Brazilian Market, Legalities, pictures, etc. it all looks very nice but... is it really like that?

They said they could be sold out within 4 months. I didnt feel any kind of pressure but I felt the urgency. Is it better waiting until I am sure I want to do it? Or is just that I am nervious about my first overseas investment?

Could anyone buying at Coconut Grove advise me on this investment? Are you going to resell the land or build? I have not seen the houses design yet but the description they gave me sounded really nice.. Of course, they are salesman... I am keen about seeing the houses designs.

Thanks and regards,

R

[wolfgang]

River,
I would suggest you cut your teeth on a less speculative investment and stay out of Brazil all together for the time being.It is not a first timers market.
Oh and by the way,informing someone that is genuinely interested in purchasing something that there will be a price increase in a few days is VERY high pressure selling.It is just that you are not yet sufficiently streetwise to recognise it.

[ady1231]

Originally Posted by wolfgang

River,
I would suggest you cut your teeth on a less speculative investment and stay out of Brazil all together for the time being.It is not a first timers market.
Oh and by the way,informing someone that is genuinely interested in purchasing something that there will be a price increase in a few days is VERY high pressure selling.It is just that you are not yet sufficiently streetwise to recognise it.

hey wolf;

Yes there will be 8% increase on 7th-Feb, the same thing happened on January,

Remember Banana Residencial? we were all saying there would be NO increase, and there was

[michaelbush]

Originally Posted by ady1231

hey wolf;

Yes there will be 8% increase on 7th-Feb, the same thing happened on January,

Remember Banana Residencial? we were all saying there would be NO increase, and there was

I guess that makes those who already bought, believe their purchase is now worth more money! All the pretty pictures are not reality, they show what the development COULD look like IF it all gets developed. Questions like "Are you going to build, or just leave it?" ring the warning bells for me. You are all buying unseen, a speculative investment, in a piece of land 300m minimum from the a remote beach in Brasil. Demand is fuelled by "there will a price increase in a few days", and everyone is happily buying their piece of "paradise". As I have said before, do not let high pressure selling tactics deter you from seeing before buying. It is still true that it is very easy to buy, but selling is another matter.

[michaelbush]

"Apparently they handle all the company transactions for us as clients, we send the money to Brazil and not to Realest International, well, we send the infrastructure money to RealEst"

There you have the first indication that everything is not as it should be!! Are RealEst the developer,selling agent, or what exactly. Why would they want the infrastructure part of the price paid to them, or is it an extra you have to pay? You will see from other threads that you should never make payments other than to Brazil, or your money is not registrered here. You will therefore have a higher capital gain on investment money paid here and pick up the tax on the higher gain, if you can get one at all. Who is guaranteeing the infrastructure will be built at all and when?

[wolfgang]

Ady,
The Banana Bunch are a classic example of sophisticated salesmanship.
They only increased the price after they had virtually all sold!
It is called reinforcement marketing and is used extensively in fmcg.It is the reason why companies with a 100% product distribution still advertise their products.It helps reassure those that have bought x,y,z that they have made a correct purchase decision.
It is premature to hold up this development as an example of anything good just yet.There is precious little activity considering the developer has been in receipt of the funds for quite some time now.

[silver1]

Originally Posted by River_42

Hi all!

I have never invested abroad before and I am not very knowlegeable in overseas property but it is something I have always been interested in. I saw an advert this weekend advertising Plots in Brazil from 9,000 pounds and it was this Coconut Grove so I am trying to do some research on it. I sent an email this morning and my questions were answered within a couple of hours...

They said they will be doing a price increase in a few days, they sent me an email brochure and some information on the Brazilian Market, Legalities, pictures, etc. it all looks very nice but... is it really like that?

They said they could be sold out within 4 months. I didnt feel any kind of pressure but I felt the urgency. Is it better waiting until I am sure I want to do it? Or is just that I am nervious about my first overseas investment?

Could anyone buying at Coconut Grove advise me on this investment? Are you going to resell the land or build? I have not seen the houses design yet but the description they gave me sounded really nice.. Of course, they are salesman... I am keen about seeing the houses designs.

Thanks and regards,

R

Hi R

There is a clause in the contracts where it says that you have to inform the developer by the end of 24 months what your intentions are, sell, build etc, see by the end of 36 months everything has to be finished, all construction. So everyone has a finished property and not construction mess. I actually was a little pissed off, you know like "Its my land and i want to do what i want with it!" But it makes compleate sense, this way, no taking chances, everyone has to be finished so everyone can enjoy the resort. Also i liked the fact that they say you are not forced to use their house designs but if you want your own designs then it has to be approved, this means we have a guarantee of quality buildings on site, no rubbish or cheep construction.

For the money, as long as you have it cash so to speak and your not selling a kidney, i think its a good investment, what can you do for 9 Grand these days? I was thinking of Bulgaria or Poland but its just to dam cold there,miserable weather this time of year etc, i would never enjoy it, and for me enjoying something i bought is 50% of why i bought it in the first place!

Have you seen the cost of living in Brazil? 70% less then what we have here in the UK!!!! I cant wait!

[silver1]

Originally Posted by wolfgang

Silver1,
Seems you have progressed most aspects correctly here.The only flaw is reserving site unseen.Most real estate companies transform into Mr Hyde at the mention of the word "refund"!
It sounds a very promising development on paper and i will be interested in your observations upon your return.There still appears to be a major shortage of info relating to the company themselves - who are the "names" behind the venture,how long has the company been in existence and what have they done previously for example?
In answer to your question, my interest in Coconut Grove lies principally in a desire to keep my finger firmly on the pulse.Personally,i always have a strong preference to purchase far closer to an International airport.Two hours imho is just too far away.Having visited the area on a number of occasions i would have to be frank and say that i believe that the smart money is gravitating South of Fortaleza and down towards Canoa.This is where the road network is being improved,up market resorts,schools,yacht clubs etc are being established.
All the best,
W.

Thanks W, i think your right, Mr Hyde on refunds!!! But HIFX told me that if there is a problem they can help put pressure on the developer, and they have not had to refund anyone yet. I agree with the background of the people behind the company, all i could find was the American company and the Chicago background. I have seen something linking it to Banana Residencies last week which that company now has 6 projects on line in Brazil, or did the sales girl tell me one of the original partners who did Banana Residencies is behind Coconut Grove?? I feel i was told this, but i cant be sure.

Ok enough now, i have written 6 item on this and it is becoming addictive!!!

Originally Posted by ady1231

Hi Guys;

I am about to put down a deposit on cocnut groove land , with Real estate International, has anybody dealt with them? and what do you think about the project in Taiba?

Help appreciated

addy

Addy, I have no idea what this is... Taiba? Where is? Coconut Grove? Sounds like a Club Med for Gringos... must be near Natal. My advice? Stay away from any first world developers... go it alone and pound the pavement off th beaten path... go to non tourist areas.

My two cents

[RalphJ]

Originally Posted by michaelbush

"Apparently they handle all the company transactions for us as clients, we send the money to Brazil and not to Realest International, well, we send the infrastructure money to RealEst"

There you have the first indication that everything is not as it should be!! Are RealEst the developer,selling agent, or what exactly. Why would they want the infrastructure part of the price paid to them, or is it an extra you have to pay? You will see from other threads that you should never make payments other than to Brazil, or your money is not registrered here. You will therefore have a higher capital gain on investment money paid here and pick up the tax on the higher gain, if you can get one at all. Who is guaranteeing the infrastructure will be built at all and when?

That's funny....truly. Send money for "infrastructure" to an agent?? Are the agents going to be building the infrastructure??

Nothing surprises me in this country anymore.....nothing. It is a criminal magnet and I truly hope that those agents and/or developers scamming people get to serve some time in a nice brazilian prison. There's already one group from Norweigh, actually Pakistani mob from Norweigh, that are sitting in a Fortaleza jail.

And River....for the love of god, don't send ONE PENNY to an agent ANYWHERE except Brazil if you're buying a Brazilian property!! 9,000 quid for a piece of property you've never seen with your own eyes???

Spend 1,500 quid, go see the land. Hire an INDEPENDANT lawyer, one unaffiliated with the builder and agent. Check that the land is "free and clear", check to see if there are building restrictions in that area, check to see if it's a place that you think will see capitol appreciation over the next few years. For the love of christ man, don't sit on a computer thousands of miles away from Brazil and think you're going to make a "good investment" without getting off your ass and doing a little investigative work. If you don't have the time to do it.....then don't invest, especially in Brazil!