Hi My name is June and I've reserved an apartment on the Porto dos Corais development in Maracajau. The developer is Brazilian Homes. Anybody else buying there? The developmentlooks fantastic but I'm having difficulty sourcing an English speaking lawyer with no connection to the developer (the one recommended by my agent is specificially mentioned on the contract - a little too close for comfort I think!) Also I can't get an answer on whether it's a good idea to send money to the developer's account direct (it's in Luxembourg). I had heard if payments were not directed through the Central Bank of Brazil they were difficult to repatriate further down the line. Any tips and general chat would be welcomed!
Hi, Dont know about Brazil but have you considered the cost of travelling to countries too far away from UK. Government looks set to slap on more and more air tax - easy money as far as its concerned. If your hoping to settle in Brazil or BLT will thats another matter.
Thanks Mummysboy. I hear what you're saying about air tax but we're buying for investment rather than for own-use. There is already a well etablished market amongst Portuguese, Spanish and Scandanavians.
I bought an apartment 3 years ago from a developer in Recife. In my case, I paid for it by getting my bank to send the money over to the developer`s bank account, but it had to be converted by a central Brazilian bank to Reals first, and that was a bit complicated.
Do you have a CPF number? This is something all Brazilians have and need in order to do all sorts of things from buying a TV set to opening a bank account. If you haven`t already done so, I would strongly recommend you to apply for the CPF number, by contacting the Brazilian consulate, and then to visit Brazil and open a bank account there. It makes paying bills, transferring money so much easier. Then you can use one of the Brazilian money transfer shops in Central London to transfer money straight to your Brazilian account in Reals. They give far better exchange rates than British banks, and the transfer usually only takes 2 days.
When you`ve bought your property, you will need to Register it. You`ll need the help of a lawyer to do this. Registration is rather a tedious process, in 3 stages, and will cost 4 to 5 percent of the value of the property. Until you`ve done this, you can`t really consider the properety belongs to you, even if you`ve paid for it in full and picked up the keys. Also, you wouldn`t be able to sell it again if its not registered.
Hope it all works out fine, and you actually stay in it sometimes, not just rent it out. Brazil is a beautiful country. I love it and its people.
Hi JWB Many thanks for your very detailed and informative reply! It does all sound a bit daunting but we have managed to find an independent local lawyer through the British Embassy and hopefully that will help with getting the CPF number, registration etc. . We intend to visit Natal/Maracajau in January and are very excited as we've heard nothing but good things about the area and the people. How have you found renting out your property? As it's a fairly new market for overseas investors we have heard fairly mixed reports about rental levels. We do plan to use it a bit ourselves, especially if Thomsons keep offering fairly low-cost flights. Again, many thanks for your advice.
Hi JuneR, I don`t rent out my apartment since I spend a lot of time in it myself, but a friend is renting out an almost identical apartment in the same building. He`s getting about 8% of the apartment`s value in annual rent. You have to be careful whom you rent to, because many default on paying the rent. Make sure whom you rent to has good references and a responsible job, if you are renting out long term to a Brazilian. Presumably, your apartment or house is part of a condominium. Try to get to know the chair of the condominium committee, who can be of great help to you.
Once you have your CPF number, open a bank account. Mine is with Caixa Economica, which provides internet banking, so I can pay all my bills over the internet even when I`m in the UK (I have someone whom I can trust to open my bills and e-mail me the codes I need to pay them). I have a `poupanca` or savings account, which gives me a cash card as well as internet banking. You can also use your English cash card in HSBC bank, which fortunately has branches everywhere, but your UK bank will charge you about 5% every time you do so.
Finally, I would strongly urge you to learn Portuguese, if you don`t already speak it, because most Brazilians don`t speak English. There are courses in the Portuguese of Brazil to be found in London. THe Brazilian consulate can advise you where.
Hi JWB. Many thanks for all your helpful advice once again. The apartment we're purchasing is on a complex in a holiday area so I guess that means we're more likely to rent to tourists - though I'm not entirely sure whether there is a local market. Thanks for the advice on opening a bank account - internet banking sounds ideal in this situation. June
Originally posted by JuneR: we're buying for investment rather than for own-use. There is already a well etablished market amongst Portuguese, Spanish and Scandanavians.
quote:
Originally posted by JuneR: The apartment we're purchasing is on a complex in a holiday area so I guess that means we're more likely to rent to tourists - though I'm not entirely sure whether there is a local market.
Your strategy sounds somewhat mixed to me, is your target market locals or tourists? Did you do much in the way of research into your target market before embarking on this purchase?
Certainly people are becoming more ambitious in the chase for great returns and are turning from Bulgaria/Romania to emerging markets such as Brazil, India, Thailand.
An awful lot of people seem to be piling into overseas new-build/off-plan property. I can't but help think that there are some unanswered questions relating to income streams/exit strategies on these developments.
Good luck all the same, do keep us updated on progress.
Originally posted by JuneR: We intend to visit Natal/Maracajau in January and are very excited as we've heard nothing but good things about the area and the people. How have you found renting out your property?
Just re-read this comment you made.....Have you actualy been to Brazil and visited the area prior you have reserving this property or have you done this just through internet?
Originally posted by JuneR: Hi My name is June and I've reserved an apartment on the Porto dos Corais development in Maracajau. The developer is Brazilian Homes. Anybody else buying there? The developmentlooks fantastic but I'm having difficulty sourcing an English speaking lawyer with no connection to the developer (the one recommended by my agent is specificially mentioned on the contract - a little too close for comfort I think!) Also I can't get an answer on whether it's a good idea to send money to the developer's account direct (it's in Luxembourg). I had heard if payments were not directed through the Central Bank of Brazil they were difficult to repatriate further down the line. Any tips and general chat would be welcomed!
Try Almeida Advogados ( www.almeidalaw.com.br ). They work for big foreign clients such as HP and stuff and have a branch in Natal dealing with foreign investors only. Ask for Dr. Doval.
