BRAZIL
Investing in the north-east
fi nance with a 20 per cent deposit. “Prices start from Brazilian Reals (BR)100,000, which is under £40,000, but a good quality renter will cost now around £100,000 and should achieve a yield of eight per cent,” says Curtis.
In Rio Grande do Norte, Pipa is a
resort near Natal where agency SPC Overseas (
www.spc-overseas.com) is selling studios and one-bedroom townhouses on the Girassóis Lagoa Resort. Properties are rented out for a guaranteed return and owners receive six weeks’ usage a year. Prices are from £62,000 and until June 30 SPC Overseas is offering units with free furniture packs. Still in Pipa, agent uv10 (www.
uv10.com) has a variety of newly built units at what is arguably the area’s premier resort, Pipa Beleza. This includes a fully furnished two- bedroom apartment (66-sq-m) with private garden and jacuzzi for BR295,000 (£111K). Properties there come with full rental management and hotel services.
Below
CGI of a property at the Shamballa condominium resort near Natal
Land and plots Curtis at Brazilian Property Direct highlights that “one of the growing living trends for Brazilians is for gated communities, known as condominiums, where you buy a plot of land and either hold it for resale or build a home on it for sale to the Brazilian residential market”. Curtis has plots available in João
Pessoa and the surrounding countryside priced from BR8,000- BR30-million (£3,015-£11.3-million). One notable project in João Pessoa
is the Tambaba Country Club Resort, marketed in the UK by Invest in Brazil (
www.investinbrazil.co.uk). Here freehold land plots start at £17,600 but SIPP-approved commercial land investments are also available from £5,000. “Because our development
partnership own a sales network in Brazil and 65 per cent of all purchases to date are Brazilians themselves,” says Richard Cash at Invest in Brazil, “this demonstrates not only the legality and accurate value in our pricing but that we also provide purchasers with the option for us to support them with their exit sales into this domestic market.” Invest in Brazil also offers 0 per
cent payment terms from £22,000, as well as guaranteed yields and buyback schemes on a limited number of purchases. “These are secured against real income via different, and already established, ring-fenced revenue streams into Tambaba. This is via a developer interest fi nance book yielding Brazilian rates of interest across over 200 purchases already made by Brazilians,” reassures Cash. Back in Rio Grande do Norte,
SPC Overseas has plots available at the Shamballa gated condominium in the beach resort of São Miguel do Gostoso, just north of Natal. Recommended for medium-term appreciation or for building a villa, prices start from £25,000 and payment can be spread across two years.
Social housing scheme The Brazilian Government estimates the country currently has a shortfall of 7.2 million homes and predicts this fi gure could rise to 29 million by 2023 (Brazil’s population is around 200 million). As a step towards tackling its housing defi cit, in 2008 the Government introduced its “Minha Casa Minha Vida” (My House My Life) scheme, which aims to help low-
36 A PLACE IN THE SUN JUNE 2011
income families throughout Brazil purchase their own home. Minha Casa Minha Vida works
by offering subsidies to buyers and developers, reduced mortgage rates, lower taxes and other legal expenses, as well as setting up a fund that guarantees payments on behalf of homeowners, therefore mitigating risk for the banks involved. The scheme attracted an initial
Government investment of BR64- billion (€28-billion) and will result in the completion of a million new homes by the end of this year. Phase two has now been approved, with a further BR72-billion (€31.5-billion) pledged to the scheme between 2011 to 2014, which will pay for the construction and purchase of a further two million homes. In the main, homes under the
scheme are apartment blocks or developments of single family dwellings. As a foreigner, tapping into this sector of the real estate market is typically done through a fund and is recommended only for experienced investors – care must be taken when choosing with whom to invest. Such funds are run by a team of
real estate professionals and partner with developers that have contracts to build projects targeting the Minha Casa Minha Vida sector in key areas, such as the north-eatern states. Some funds might focus on one project, others will spread your investment across a number of developments. Entry level investments typically start from €100,000 (£88K). Exit strategies and returns are typically underlined by the Brazilian
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