The Spanish company with the problems is a different legal entity to the separate company in Brazil. I have a source as I said, close to GS Brazil and they are apparently going to exhibit in Madrid from 13th April. This depends on the last licence being signed off this week. As for deposits, then they will only be returned if the contract is broken by GS by not getting licences within 12 months of reservation, and we understand there is a bank guarantee for this. People should read their contracts, seek info from the selling agent and GS, and stop spreading rumours without knowledge. In addition even if GS Brazil gets caught up in the financial problems of the spanish company, the project itself may well not be affected since there a number of partner companies in the project. Why do people love to see the failures rather than successes? I have not been involved in sales of this project, but am closer than many who post here.

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Michael Bush
e-mail mbush5@aol.com
http://www.thecompletepropertysolution.com
skype name michaelbush

Michael, if your money (mine is not) is at stake, you would want to know if one partner of the development you have brought into has gone bust and to say they are different companies, legally is true, (or probably true), people want facts not fiction.

It would be big alarm bells to any one interested in keeping their financial health and security, and the financial viability of the partners in the business.

I think you must be detached from the money, I would very uncomfortable if I invested there, especially as along way from EU, companies going bankrupt, stories in the press of things not going well. But hey lets look at the successes. The successes we all get up each day, work hard, and have a chance to make a great life.

If I had clients in this development. I would get them to speak to legal council, and not on any terms invest money (further) without securities in place.

I dont want/need to know this, but any investor would be using alot of bank money as leverage in this deal. So they can only minimally lose a certain amount of their own finance if it all went wrong (which at the moment, it aint going 100% right, if partners subsidiaries are hitting the financial bank rupt wall). So let see how much the bank will finance and stop burning private investors money.

Banks do checks and are suppose to be professional, lets see how much risk the bank is willing to hold. You can get bank finance on this cant you?

My advice is if things are looking like bad news on the outside, be sure they are alot worse inside!

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There are two issues here, the theory and the reality. The reality is that these highly speculative "mega" developments are highly geared, in other words they need a high volume of investment to fund them and the marketing and Agency costs. The fact is whether one part of the consortium is bust or not, the confidence to invest is totally bust....this will affect the cash flow and ability for the scheme to be financed. Word gets around and nobody in their right mind will put a penny more into this scheme..new or old..s how they going to fund it..answer they are not..it is a sinking ship now as nobody investing can afford to beleive what anybody says true or false...and if they are sensible they will steer well clear...this will cause the failure of the scheme whatever the reality. Just the same as banks getting cold feet and getting nervous to lend creating the credit crunch...it's about confidence not whether one Agent or lawyer says it is fine or not. Your best loss if there can be one is the one that is minimised and you get out quick not throwing good money after bad on a lost cause..take your medicine and move on.

I agree totally.This is not Disney Land this is Brazil the Northeast one of the poorest in the whole of Brazil.It was never the place for 8 hotels ,mega golfing mechanics nor 1000,s apartments.If so why not build it in Spain or Dubai now that would be something !Or do they already have them there??

You can't get bank finance on this project unless you can show proof of income in Brazil. There are no international banks providing loans for foreigners to buy properties in Brazil. For one to accomplish that you need to put up another asset as collateral and get the loan from where the asset exists.

You've been "bang-on" goldberg, people here in Brazil get ripped off left and right and the biggest reason is they have no idea what they're getting themselves into and they trust agents that in many cases don't know what they're into as well.

As Raimundo has stated here of late, he's someone that has spent time in Brazil, travelled all around it, invested monies, and he found out like most find out, through experience. Unfortunately NOT getting ripped off in Brazil is more rare than getting ripped off.

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www.mjrdevelopments.com/ www.rosegardenbrazil.com

Ralph,
You are so right! I know I tend to voice my opinion quite a lot,but it is not with bad intentions,just to help people become aware that it is not all beer and barbies in Brasil,though it may appear attractive,the beautiful folders,the famous faces,the wonderful,magical sales talk in plush offices the actual bottom line is people really need to work these companies out.How many buyers know what goes on under Brazilian law.?How many overseas developers truely understand Brasilian law? Law here is like no other,everything that is ever spoken on tv or whoever you talk to,you will always hear a Brasilian say(nos temos uma lei aqui em Brazil..........) If you do not have theat special document then you have been ..................

Very true Dotty,
Most real estate companies selling from Europe know F ALL, I have spoken to so many by pretending to be a first timer and never been to Brazil and I am often shocked by their little knowledge from basic questions an investor would ask.

Oh,how to make millions!!

Well I dont know if GS Brazil are limping on or not but my wife and I rolled up a their offices in Natal last Monday week for a pre arranged appointment. They did not seem to be expecting us and unfortunately as it was raining and they only had a small car available they could not show us the site. They would have a big car that afternoon so we took a bus ride from hell back to our hotel in Ponta Negra for a re-arranged 2pm meeting. They failed to show and gave no apology. It seems it was 'just not possible' as they had other potential clients to attend to....Beckham and Ronaldo perhaps or maybe someone who had not yet parted with their deposits !!

All in all pretty shabby treatment of one of their investors. All was not lost as a combination of Buggy's, Donkeys and Camels got us to the site where we found a road adjacent with small cars going along it. Ho Hum.

That's truly a shame how you and your wife were treated KDJX....but unfortunately doesn't surprise me.

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www.mjrdevelopments.com/ www.rosegardenbrazil.com