investment strategy

[davehoskings]

In the spirit of sharing I would like to ask what people's investment strategies are in regards to property. Heres mine:

Prices are driven by supply and demand so if property is selling at that price then it isn't crazy whatever it is. Please note I do say "is selling". There is a reason why the estate agents maxim is "Location, location, location".

I used to think prices were crazy in some spots on the Costa del Sol 15 years ago. and oh how I wished I had bought more then. That wish still holds even in todays climate.

I certainly agree that some property is overpriced (crazy prices) in comparison to other similar property in the same area, but that is where research and a proper comparison comes in.

When I buy I don't look at price per m2 in comparison to other areas. That is just a fools game which will only lead you to buy something in the backwoods which you never would want to visit, can never rent and can never sell anyway.

What I do is ask myself does the place i am buying in have redeeming features which compare to other places which have already seen good increases in the past and is the type of property I am buying going to benefit from those price rises. This doesn't guarantee instant riches, but I am not poor at all.

I would buy in Buzios right now (not the dump south of Natal, the one near Rio) even though the prices are astronomical compared to what you can get in the NE, because I know it is an established resort town which is frequented by the wealthy of Brazil. Right now Brazil is getting richer so the prices can only go up.

Any Comments?

[Dotty]

Strategies for buying-

Short term: pre-launches in great locations with room for high price increases .

Long term-Buy in different locations close to amenities for commercial and residential purposes.



Buzios Rio v's Buzios Natal .Buzios Rio (been hip since the 70's prices very cheap back then,and very similar to Marbella price wise at todays prices ,which does not make it a great investment as it's already expensive to begin with. Florinopolis is stunning(not unlike Buzios Rio)with prices similar to Natal which has a mixture of seasons .The problem being a long hike and a short season.


Buzios Natal-What may be a dump to you at the moment , but is a super investment and will be in the next 5+ yrs very,very expensive to buy into to.Mainly frequented by Natalenses.

Have a nice day

[davehoskings]

Originally Posted by Dotty

Strategies for buying-

Short term: pre-launches in great locations with room for high price increases .

Long term-Buy in different locations close to amenities for commercial and residential purposes.



Buzios Rio v's Buzios Natal .Buzios Rio (been hip since the 70's prices very cheap back then,and very similar to Marbella price wise at todays prices ,which does not make it a great investment as it's already expensive to begin with. Florinopolis is stunning(not unlike Buzios Rio)with prices similar to Natal which has a mixture of seasons .The problem being a long hike and a short season.


Buzios Natal-What may be a dump to you at the moment , but is a super investment and will be in the next 5+ yrs very,very expensive to buy into to.Mainly frequented by Natalenses.

Have a nice day

If you think Buzios Natal is expensive to buy into and a great investment then I have a place for you, in fact I have plenty of them ...... or are you an agent pushing buzios????

Otherwise Dotty, you are missing the point of my argument, which is, it doesn't matter what the cost per m2 is, what matters is if it is selling at that price and if it will go up. If I followed your argument I wouldn't buy a property in Mayfair in London because it is ridiculously expensive and has been for the last 40 years but it still keeps going up and up, and isn't likely to stop.

[Dotty]

Buzios , Natal is not expensive at the moment (but will be in the next 5+yrs ref-post ).I mean who would think it would now cost you approx 600,000 reais to buy a house there when they would only cost 50,000 a while back.

[davehoskings]

Originally Posted by Dotty

Buzios , Natal is not expensive at the moment (but will be in the next 5+yrs ref-post ).I mean who would think it would now cost you approx 600,000 reais to buy a house there when they would only cost 50,000 a while back.

Whatever you think of Buzios Natal, there is no way I would buy there right now, it is priced the same as or more than areas that are much nicer, have infrastructure and have people visiting it.

I just saw a photo of it in a promotional magazine, which makes me laugh as the place is strewn with rubbish, even photoshop can't fix it!!

[Dotty]

Aren't you the same person who said Jeri was nothing special?Well I can tell you the people that bought their yrs ago for chicken feed made a fortune and the same goes for Buzios Natal -the future will not be all doom and will flourish in the future .
It has been changing steadily over the last 3yrs with some dodgy condos,but some pretty ones too.It is secluded and doesn't have much to offer yet in the way of nightlife ,police station,chemist etc , but it is changing and as most things in Brasil can take time.

Nice investment.

Originally Posted by davehoskings

Whatever you think of Buzios Natal, there is no way I would buy there right now, it is priced the same as or more than areas that are much nicer, have infrastructure and have people visiting it.

I just saw a photo of it in a promotional magazine, which makes me laugh as the place is strewn with rubbish, even photoshop can't fix it!!

[davehoskings]

Originally Posted by Dotty

Aren't you the same person who said Jeri was nothing special?Well I can tell you the people that bought their yrs ago for chicken feed made a fortune and the same goes for Buzios Natal -the future will not be all doom and will flourish in the future .
It has been changing steadily over the last 3yrs with some dodgy condos,but some pretty ones too.It is secluded and doesn't have much to offer yet in the way of nightlife ,police station,chemist etc , but it is changing and as most things in Brasil can take time.

Nice investment.

Jeri is way overhyped and it isn't that special at all, it is really good if you are a single male kite surfer with money though.

I think you could make money on Buzios in the future, but right now for what it is, it is way overpriced. Unless you are willing to stay in it for 10 years you ain't going to see returns there.

You sound like an agent to me Dotty, are you one???

[davehoskings]

Originally Posted by davehoskings

Whatever you think of Buzios Natal, there is no way I would buy there right now, it is priced the same as or more than areas that are much nicer, have infrastructure and have people visiting it.

I just saw a photo of it in a promotional magazine, which makes me laugh as the place is strewn with rubbish, even photoshop can't fix it!!

I have managed to scan the picture in that made laugh so much.

[FCZ]

Let me say up front that I’m not a property investor, I just visited RN and CE to short list places to have a Summer house; naturally, if prices go up after I buy it, much better. So, here my two cents:
It seems to me that what you call high price per sq m would be the equivalent to buy stock from a company with a low earnings per share, i.e., lots of investors bought this “company” already and present returns look thin, anyway, if this company shows grow potential and is a market leader, keep buying is still a safe bet (forward looking). That would be the Blue Chips or Grow/Large Cap stocks. Some investors prefer to buy cheap stocks that have been overlooked by the market and, eventually, may have skyrocket returns, we call “Value” stocks. It seems to me that Buzios (RJ) is like a Blue Chip, while Buzios (RN) is the “Value” stock. Of course, someone may end up stuck with 2-3 “value” stocks before actually get one right; it depends of investor preferences. IMHO, the most crucial information is the market one (international, national, local, industry, and so on); these sort of information is fundamental to indicate which direction to go and when. Then, someone can use its “feeling” or on the ground perspective. Because of that, I believe that the research done by JMBroad is just about everything, and he should be well paid for that…
If you wish, now you can say: “Yeap, you were right, you aren’t a property investor!”. Just, please, save me.

Originally Posted by davehoskings

In the spirit of sharing I would like to ask what people's investment strategies are in regards to property. Heres mine:

Prices are driven by supply and demand so if property is selling at that price then it isn't crazy whatever it is. Please note I do say "is selling". There is a reason why the estate agents maxim is "Location, location, location".

I used to think prices were crazy in some spots on the Costa del Sol 15 years ago. and oh how I wished I had bought more then. That wish still holds even in todays climate.

I certainly agree that some property is overpriced (crazy prices) in comparison to other similar property in the same area, but that is where research and a proper comparison comes in.

When I buy I don't look at price per m2 in comparison to other areas. That is just a fools game which will only lead you to buy something in the backwoods which you never would want to visit, can never rent and can never sell anyway.

What I do is ask myself does the place i am buying in have redeeming features which compare to other places which have already seen good increases in the past and is the type of property I am buying going to benefit from those price rises. This doesn't guarantee instant riches, but I am not poor at all.

I would buy in Buzios right now (not the dump south of Natal, the one near Rio) even though the prices are astronomical compared to what you can get in the NE, because I know it is an established resort town which is frequented by the wealthy of Brazil. Right now Brazil is getting richer so the prices can only go up.

Any Comments?

[Dotty]

Nice photo , pity it's so far away! I think that most beach areas along the coast look pretty much like that -Grancandu,Pitangi,Maxaruguape etc ,but there are a exceptions .Where are the lagoons in the snap?