Could i ask peoples views on Banana residential. i am really thinking of reserving but as a first time buyer it is pretty daunting prospect being so far away. for all you guys that have already reserved can i ask what you expect from rentals and growth value. also does the fact the development is 2km from the beach make it any less attractive. finally will it be as good a buy as Natal which is close to the new airport. wish i had a magic ball to see how this will develop but the area looks absolutely stunning and the price aint too bad either
appreciate any thoughts

Write down your 3 main reasons/objectives in order of priority for wanting to reserve along with which development in Natal you are referring to for comparison purposes and i will try and answer your questions in good faith.

Hi wolfgang, my main reasons for looking at banana are

1. great price for size
2. smaller development easier to sell in future if i wanted
3. stunning location a couple of km from beach

if i bought here i would be hoping for decent capital growth, some rental income and some use for holiday. who knows in future might end up spending more time there.

the reason i mentioned natal was a lot of developments there seem to have more amenities, beachfront and close to the airport. would these have greater rental potential???
the one that caught my eye was gran natal which has been well advertised, also natal ocean club although thats a little pricier.

this buying abroad is new to me thats why i posted to find out more experienced investors views

hi there
i have bought there in phase one last week and fly tomorrow i can tell you more in one week when i return i think banana is very good value for money and besides this there are villas only
2 ks from the beach is great
less noisy and windy
a good friend of mine has bought the plot next door to mine
i will also go for the pool but will do that at a later stage
in natal biggest airport will bring mass tourism which aint that good!!!
and your property in banana is definitely meant to see its value increase and also prices will increase 10% in 2 weeks time
time to make up your mind!contact me if more details needed i am already quite far into the process
olicombet@hotmail.com
cheerio

actually 15% increase and not 10

Ferriej,
Some fast balls here ,though you do display a very sound insight into the main issues involved for a self confessed less experienced investor.
Given your posting, and objectives ,hat in the ring ,i believe that Banana Residential in Fortaleza is the better option.
Brazil is an embryonic market and as such, is primarily a capital appreciation play.Both should yield an excellent result in this regard ,so little to empirically differentiate.I am reassured you said "some" income because yields are likely to be sparse in the short term-probably even more so at Grand Natal due to length of build time.
Banana should be up,running and fully operational well in advance of the facilities even being finished at the latter.Sure there will be more facilities in the long run ,though this project may just be a tad too ambitious given the number of beds available relative to required visitor numbers.You will be competing here not only with thousands of other properties but ALSO with numerous large on site hotels.Banana has a 100 max villas and a well connected property management company should achieve a good occupancy level given the small scale of this project.Relative to its size ,on site leisure facility provision is excellent.
From a personal vacation usage perspective my inclination would be to say that again Fortaleza would probably be the better option.It is 4x the size of Natal,is more modern and quite simply there is more choice, a greater variety of activities and facilities, a better nightlife and an extended season.
Do not place undue emphasis on the airport factor.Natal will be large but a little known fact is that much of the increased capacity is geared to commercial as opposed to passenger traffic.Also bear in mind that not all visitors will necessarily eminate from Europe.The North American market is both considerably larger and closer.There are no direct flights from the States to Natal -instead they run from Miami to ..yes..Forteleza.
Incidentally, i am purchasing at both locations and in conclusion a lateral thought for your consideration-why not cover your bases by entering into a fractional ownership arrangement with like minded individuals,purchasing on a joint basis at both Banana and Gran Natal and selling the least favourite/less successful performer?This will also serve to spread your risk factor.
Hope these comments are of some use and if you have any specific queries post again or pm me.

I too have bought on the Banana Residential, and feel like buying another after that Wolfgang! Excellent Post!

Hi everyone

We are just about to put our holding deposit down on a villa on the banana club. We have to say that we are as nervous as hell about this - mainly down to the fact that it will take our life savings down to nothing!!
So could anybody please, please reassure us that this is a good idea and any extra information about the resort and local area would be very much appreciated.
We have holidayed a couple of times in Brasil (Salvador and Natal) and loved our time there. We are planning on going out to Cumbuco in mid August to have a good look round and will be happy to pass on info send phots of our time there. I also speak passable portuguese - as I worked in Lisbon for a couple of years a few years back. So when we visit I can get the views of locals and chat to builders etc.
We are planning on having the property as an investment/holiday home and we havent ruled out the possibilty of re-locating there in 3 years or so.
Look forward to hearing from any others interested or anyone already taken the plunge and invested.
Many thanks

Hello Mike
At Banana Club you are getting a lot of house for your money.

It really depends on what is the prime driver for your purchase. Is it pure investment, or it is more for your own usage? If it is purely an investment purchase, I´d be pleased to give you an honest opinion of the market and the specific location and provide some comparisions. Just as an example, a 2 bed beach front apartment in Cumbuco will cost you areound the same. Ever think why this is? There is a reason for everything.

If your it is really a holiday home and you want it to be a good investment, I suggest you go there first in August and make your decision then.If the property you were looking at is not available, well perhaps it was not meant to be. There is a lot going on down there and pleanty of choice. Let me know if you would like any assistance.

Kind regards,

Anthony Fernandes
Director
SPC Overseas Realty S.L.
SPC Overseas Properties | Investing in Property | Brazil | Cape Verde | Hungary | Morocco | Portugal | Spain | Turkey

You are quite right in pointing out that Banana Club properties are cheaper because they will not be beach-front. They will be situated 3km from the beach on a lagoon. The main reason that I put down a reservation deposit on a Banana Club property was because I get a lot more bang for my buck. I also think that, while beach-front properties are highly desirable to some people, the beach is not everyone's cup of tea. Perhaps people with children would prefer the relative safety of a lagoon. Or maybe those sampling water sports for the first time would prefer a calm lagoon rather than the rough sea to practice in? When purchasing any property there is always a trade-off. Beach-front and get a one bed apartment for your £50k or lagoonside and get a three bed villa for your £50k? I've chosen the latter and am blogging about my buying experience under the name of brazilianrealestate at the blogspot website.