Part2 ! sorry having problems with posting!]
Therefore do not buy something that will require your presence to earn from. Unless you want to live here of course!!! I think that you should not commit to anything,without visiting Brasil first, and then you have to answer the question- why invest in this country? there are good returns to be made, but my opinion is the same as anywhere- if you can sell the investment in the future easily then you have no problem. If it will only attract foreigners you have a problem! I have opportunities that will certainly get 8-10% returns, no guarantees but professionally mangaged investments with proven local agents.

Michaelbush is obviously an expert in the rental side of things - I am not - but I have to agree with his reasoning. Futhermore an investor might want to consider potential capital growth of his investment. In this case not necessarily buying the most expensive, but the most likely to show the geatest increase in value may be a consideration.

Thanks for your feedback. I have looked at 3-4 bed villas near natal for around £70k-£80k but was nervous about the security and rental management. Both apartments I have purchased have rental management on site and will be secure. Flats are always going to be more expensive than villas per square metre.

Also the 2014 world cup will provide an excellent opportunity to exit my investments as the countries profile will be enhanced.

Hi Debzor- I agree that capital growth is important, but to realise that gain you have to have an exit strategy. The majority of people cannot manage the investment from Europe and buying something other than land (very good option if in the right place) solely for capital growth, implies leaving a property empty for long periods, or employing a "morador". In itself not that expensive, (probably a minimum salary of 380R$ per month) but you are going to have expenses also like taxes to pay. If people think of Buy to let in the UK, and apply the strategy here, they can benefit from income in excess of a borrowing cost, and get the gains too. Otherwise leave the money on a high rate deposit account! The difficulty is convincing people to think like an investor, and not about a dream home unless they intend to move here or spend significant time here.

Hi, thank you for all your posts. Debzar interesting comments about rental income. UV10 you say you have had some good rentals, I looked on your website and the products say guaranteed rentals but then i can not find the link to look into them.
Brazil is the worlds leading country of disparities, the haves and have nots. Obviously the distribution of wealth is an issue. Security is an issue. The coastal product will be directed at rich people, but what about the other people? How they going to feel? Sitting in the ghetto (favala) looking at people with second or third or tenth homes?

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GG,

That sort of information is always provided to our clients. Since you are an agent I have to ask why you want that information on our website?

Regards,
Rob

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Brazil Property | Pipa Brazil

Probably not very happy? Quite possibly the same way people in Casal Ventoso in Lisbon felt when looking at Cascais and Estoril?

Possible normal human emotions among the extremely poor would be jealousy, possibly despair or frustration, but then again I would imagine those emotions come out as much or more when they walk around Midway Mall or any of the new super shopping centres where local Brazilians and Europeans are buying Armani, Gucci, Versace and Rip Curl at prices which would make Europeans blush.

What percentage of the 880.000 population of Natal do you think live in Favelas?

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Yes, I work for a Real Estate company doing market research and analysis but I'm not involved in sales.

Have a nice day

Brazil is full of glaring inequalities. On the other hand, tourism and development create jobs for unskilled Brazilians and generate business opportunities for local entrepreneurs. The problem of Brazil's inequalities will not be resolved by tourism or from the outside, rather the impetus must come from the Brazilian government and Brazilians themselves.

The important thing when looking at Brazil rentals is to study what Brazilians are prepared to pay, and for how long, and work your figures out from this base level. Always beware of developers offering short term (ie 2 year) rental guarantees, because often it is simply a repayment to you of an overcharge on the initial purchase price, and designed to help sell the property in the first place.

I was with a Brazilian estate agent friend here on the island of Itamaraca last night, when he showed potential Brazilian rental clients what I thought was a pretty grotty property. I voiced my concerns and he replied that he has almost run out of available rental properties on the island for the season (ie now til end of March 2008), and is now scraping the barrel. He is approaching 100% capacity!!

But these are all Brazilians paying Brazilian prices for what they will use as weekend homes for the summer. Not the same as very high Euro prices for odd weeks in Spain, etc, - you must compare like for like.

Hi everyone

I was just wondering if anybody out there has purchased at the Ocean Residence & Spa in Tabuba Beach. I purchased a 3 bedroom there last year, and its almost finished. I was there in July to see how everything was progressing, and it was going well.