You are right it is a little abiguous. Promoters and developers say they can guarantee a fixed rental income,well if the clients are not around that makes it pretty difficult,however there are companies that have good track records of managing properties and can offer a % from 5%-10 and there are companies that can offer zero%.You would really need to look at their past projects in management and admin to see their experience in this area,as there are so many developers proclaiming the same type of deals which I personally find hard to understand because you need the people to fill all these 1000s of properties in the 1st place and to invest enormous cash to even reach the world in marketing!The basis I believe is on a theory that millions of people will want to rush to Brasil and rent a property,well thats almost like realistically saying ,lets find the wind in the shoebox.

Thats a good question, I ve looked at this and I cant believe others dont. If a development offers i.e 5% 2years, you ll in many cases be paying 10% overprice on top of your gringo price. Often they are simply giving you SOME of the 10% back. So it doesnt mean a great deal to the developer if its rented or not. When I say some of the money back I mean many would still take money of that 5% for tax, 30% commission, electric bills and communal fees even with it been empty. Basically you still end up with nothing or very little. Best to buy somewhere with infrastructure and in highly rentable areas and simple use a rental company privately then you can gain a lot more.

Hi Junior,

The term can mean a few different things, but mostly it is the return you would receive on your property expressed as a percentage per year of the purchase price. The terms are normally between 3 and 5 years.

The figure is usually before your taxes are paid by you on that income. Other than that you really need to look at the details of the contract as some percentages don't include condo fees and other expenses whilst some do, so as always read the fine print and make sure it makes sense to do it.

Regards,
Rob.

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From the 3 posts above, sounds like after all taxes, monthly condominium fees, management fees, utility bills, I might have enough left over for a few beers on the beach ?

How do the property companies plan to pay the guaranteed rents ? If gringo owners dont have a Brasilian back account, ( sounds difficult to open an account if you do not have permenent status) I assume they will then have to wire it to foreign accounts ?

I think you are misquoting me there, I said some deals are better than others, so whilst you will do well out of some you might not out of others. You really need to look at the details of each agreement.

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The so called ”rental guarantee” is a gigantic SCAM.

Look into the thread “ Blindness & stupidity when investing in Brazil “ I started.

Its sounds too good to be true. Will look at the other posts you mentioned. Too be honest, sounds a little suicidal on the part of the Developers if they havent covered themselves in some way laready.. As Mr. Paul above mentioned, if any deals are done in this respect, they are probably hit with it at the front end of the deal already.

From all I have read here, doesnt sound like Developers are feeling charitable to the poor Gringos.

If you don't like the idea of guaranteed rentals then there are plenty of developments available that don't offer them.

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Hi There!
I consulted 6 developments around Fortaleza, to my surprise 4 are completely sold out, and the only two that still have units left are supposed to be ready by mid 2011! The construction company seems to be very good and I liked the apart. designs (3 bedroom, around 100m2, 175,000 Dollars). I will not reserve without seeing the place (1 in Cumbuco, 1 in Porto das Dunas). To tell the true, it doesn’t seems to be a great value, at the end, the land under my feet belongs as well to whomever lives above or below me. But I will check when there a couple of months from now. If we like it… I’m curious if anyone knows the minimum distance allowed for a construction. The ad says 50 mts from the beach, and it really looks like just few steps when I checked the pictures.
Actually, I don’t personally like beach front, just a walking distance is ok. My sister has a house in the South, things get rusted (car, fridge,…) after a while. One of the developments I saw has lifts for just a couple of floors; just to add maintenance costs…
My plan B (or C) would be to buy a couple of land plots, so I can build a house in one (just nice, not fancy would be ok) and use the second land plot for my hobby, gardening/landscape, best of the worlds, beach and gardening (the other one my wife doesn't allows...) . I saw a couple that were either very far from the Fortaleza/Natal or didn’t have on site security & maintenance. And condominium with a dozen houses just mean high monthly fees for something that will stay closed 10 months a year. It will take longer than I was expecting to find just the right thing.
Back to the question, anyone knows the allowed distance from the beach… Thanks in advance.
P.S.: I haven't checked RN yet, but I will later on.

I would really ask a lawyer so don't quote me, but I think it is now 50 metres recently increased from 33 metres. This is all from the high tide mark. Then you can only build 2 storeys for a certain distance from the 50 metre mark. I also wouldn't be surprised if this varied state to state and depending on the zone the building is in.

You are allowed to build "temporary" structures closer and on the beach itself if you own the land up to the high tide mark. "temporary" structures are just built of wood without any foundations.

Regards,
Rob.

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Brazil Property | Pipa Brazil
Property Investment in Brazil[/size]