brazil real estate

Why Invest in Real Estate in Brazil in 2020?

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Why Invest in Real Estate in Brazil? Mike Smith- Broker in Brazil

The Brazilian real has devalued over 30% to the US dollar,euro and pound in the first 3 months of 2020. If you were already planning on buying Brazilian real estate there has never been a better time to invest your dollars,euros or pounds.

There are some mouth watering opportunities to buy beautiful beach property in Brazil as your dollars,euros and pounds give you more spending power. than ever before. We at Brazil Beach House are already seeing an upturn in demand from foreign investors looking to capitalize on great property deals in Brazil.

Travelling restrictions are still in place as the corona virus in Brazil continues to disrupt business as usual but we very much hope that the situation will normalize for all of us by the end of next month,May 2020.

In the meantime it may well pay off to spend some time researching the Brazilian property market to see how much bang you can get for your buck.

I have picked out 5 brilliant beach homes for sale in Brazil right now that give you maximum value for your money depending on your budget;

https://www.brazilbeachhouse.com/blog/2020/4/14/invest-in-real-estate-in-brazilnbsp-1-usd-r-52-top-5-beach-bargain-buys-in-brazil-this-month

Brazil Beach House Website; https://www.brazilbeachhouse.com/

Contact me; mikesmithbrazil@gmail.com

55 84 99993 8936 / whatsapp

5 Profitable BeachFront Hotels For Sale in North-East Brazil in July 2018

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If you are looking for idylic palm fringed tropical beaches,exotic vibrant Brazilian culture,great touristic infrastructure,all year round sunshine and high occupancy rates, the North-East of Brazil is THE place for hotel investment.

The Brazilian currency has dropped 20% in value this year therefore providing a unique opportunity to enter the market and capitalize on one of these excellent hotel investment options.

Current Exchange rates;

USD; R$ 3.93 / Euro; R$ 4.6 Pound; R$5.22

Brazil Beach House has built up a fantastic portfolio of both large and small hotel offers on the best beaches of the North-East including Porto Seguro, Trancoso, Praia do Forte, Itacimirim, Ilheus,Morro de Sao Paulo,Pipa,Maragogi and Flexeiras. Here are 5 of the best small beach hotels for sale in Brazil right now with respective links.

1) HOTEL NUMBER ONE; ;  STUNNING BEACHFRONT HOTEL IN ITACIMIRIM,BAHIA; R$ 8 million  ( 13% ROI )

https://www.brazilbeachhouse.com/hotels-1/23-apart-beachfront-hotel-restaurant-in-itacimirim-bahia-r-8000000

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2) HOTEL NUMBER TWO; LUXURY BEACHFRONT HOTEL COMPLEX FOR SALE IN TRANCOSO; $7.5 MILLION USD  (12% ROI)

https://www.brazilbeachhouse.com/hotels-1/luxury-beachfront-hotel-complex-for-sale-in-trancoso-75million

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3) HOTEL NUMBER THREE; BEACHFRONT HOTEL ON BRAZIL´S CARIBBEAN COAST  MARAGOGI /ALAGOAS R$4.5 Milllion   (15% ROI) 

https://www.brazilbeachhouse.com/hotels-1/beachfront-boutique-hotel-with-award-winning-restaurant-in-the-brazilain-bahamas-15-roi-r45m

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4) HOTEL NUMBER FOUR; ; MAGNIFICENT BOUTIQUE HOTEL IN TROPICAL PARADISE/BAHIA; R$4.5 Million  (14% ROI)

https://www.brazilbeachhouse.com/hotels-1/magnificent-small-boutique-hotel-in-tropical-paradisebahia-r4000000

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5) HOTEL NUMBER FIVE;DAZZLING BEACHFRONT HOTEL IN CEARA; R$12 million  (10% ROI)

https://www.brazilbeachhouse.com/hotels-1/dazzling-beach-front-boutique-hotel-in-north-ceara-r12-million

 

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All 5 of these Brazilian beach hotels provide amazing oceanfront settings with close proximity to airports and are on the map nationally and internationally with a high volume of tourists all year round.All 5 have high occupancy rates,are generating profits and are well established in their respective markets.

I have a wide selection of hotels for sale in Brazil to suit all investment requirements so please contact me for more information.

New York Times Features Brazil Beach House Star Property Today!

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A FIVE-BEDROOM HOUSE ON THE BRAZILIAN COAST

$554,000 (1.8 MILLION BRAZILIAN REAL)

This five-bedroom house is a short walk from a white-sand beach on the northeastern coast of Brazil, about 30 miles from the popular tourist destination of Natal. Built in 2006, it is part of a small gated development of 16 homes called Quintas do Coqueiral.

The 4,300-square-foot house sits on about 1.2 acres covered in palm trees and grass. Visitors enter through two large wood doors, framed by pillars. The double-height foyer opens to a living room and covered patio. There is a pool and Jacuzzi in the back yard, with a wooden deck.

The floors on the ground level are white marble concrete, a form of concrete with sand and marble grains mixed in, said Mike Smith, owner of Brazil Beach House, the company marketing the property. The doors and windows are trimmed in Brazilian hardwood, and the exposed beams and pillars are eucalyptus, Mr. Smith said.

From the foyer, stairs lead to a mezzanine level currently being used as an office. There is an open-air deck off the mezzanine.

All the bedrooms are on the ground floor. In one wing, there are two large bedrooms, each with a walk-in closet; the master has sliding glass doors that open to the pool deck. Two smaller bedrooms are in the other wing. All the bedrooms have en-suite bathrooms with marble counters.

A dining room, television room and another bathroom are also on the ground floor. The kitchen is off the dining room, overlooking the pool area, and has two refrigerators, an electric drinking fountain and a six-burner stove.

The maid’s quarters, adjacent to the kitchen, include a bedroom, a bathroom and a small attached garage, large enough for a single car. There is also a detached two-car garage on the property.

The furniture is not included in the asking price, but is available for an additional 100,000 Brazilian real (or about $31,000), Mr. Smith said.

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The property is about a half mile from the village of Maracajaú, a popular spot for diving. Natal, about a 45-minute drive from the house, is the capital of the state of Rio Grande do Norte, with a population of about 850,000. The closest airport is the Governador Aluízio Alves International Airport in São Gonçalo do Amarante, about 25 miles away, but most international flights are routed through Rio de Janeiro or São Paulo.

MARKET OVERVIEW

Brazil is coming out of a lengthy recession following years of political turmoil. Home prices fell 3.23 percent in 2017 and 5.38 percent in 2016, when inflation is factored in, according to the FipeZap Index, which tracks sales in 20 Brazilian cities.

In recent years, “supply exceeded demand considerably,” said Andreas Hahn, a senior partner with Hahn Consulting, in São Paulo. But lower prices and an improving economy are bringing buyers back to the market, he said. And Brazil’s economy is expected to grow 1.9 percent in 2018, according to the International Monetary Fund.

“For the first time in several years, the Brazilian real estate economy is returning to an equilibrium state,” with supply and demand in better balance, Mr. Hahn said.

Sales in the middle-price range were hardest hit by the downturn, said Marcello Romero, chief executive of Bossa Nova Sotheby’s International Realty, in São Paulo. The lower end of the market was boosted by government subsidies, he added, while the high end was less affected.

In São Paulo, where he is based, the volume of sales was up 46.1 percent in 2017 compared with a year earlier, according to data from Secovi, a property industry association.

“We think that the worst moment is over,” Mr. Romero said. “Especially in the major cities, most of the developers are preparing their launches soon.”

Although there is no official data available on sales in the Natal area, agents said prices have fallen between 10 and 20 percent in the last three years.

“The northeast is more of a holiday marketplace,” said Steve Gallagher, owner of Brazil Overseas Property, and was therefore more vulnerable when the economy slowed. “Political uncertainty,” he said, also plays a major role in the market, as potential buyers await the results of the presidential elections later this year.

“I expect confidence to grow within the market at the beginning of 2019,” Mr. Gallagher said. “And we should see property prices increasing steadily from then on.”

There are already signs the market is picking up, Mr. Smith said. “The last quarter of 2017 saw the first signs of growth.”

In the last five years, the value of the Brazilian real has dropped by almost 40 percent against the American dollar, he said, making Brazilian real estate more affordable for buyers from the United States.

In the Natal area, he added, homes in gated communities priced between $150,000 and $600,000 are the most popular with foreign buyers.

WHO BUYS IN NATAL

The northeastern coast primarily attracts “new buyers, mover-uppers and second-home buyers,” Mr. Gallagher said.

And foreigners make up about 25 to 30 percent of the buyers on the coast, said Mr. Smith, who primarily works with foreign prospects. Of his clientele, about 20 percent are from Portugal, he said, with buyers from Italy, Spain, Scandinavia, the United Kingdom, the United States and Canada each making up about 10 percent of his business.

International buyers represent about 10 percent of the Brazilian real estate market over all, Mr. Hahn said.

BUYING BASICS

There are no restrictions on foreigners buying property in Brazil, except in rural or border areas, said Juliano Ribeiro Lomonte, a real estate lawyer based in Natal. But foreigners do need to obtain a tax registration number, known as a CPF, to buy property.

Buyers typically make a 20 percent down payment, and the final deed is signed in front of a notary. “The whole process normally takes between 30 to 60 days,” Mr. Smith said.

The transaction is straightforward, but buyers should hire a lawyer to oversee the process, agents said. “A lot of times sellers don’t know about the taxes or restrictions on the land,” Mr. Lomonte said.

WEBSITES

Brazil tourism site: visitbrasil.com

Brazil government portal: brasil.gov.br/

Real estate price index: fipezap.zapimoveis.com.br/

LANGUAGES AND CURRENCIES

Portuguese; Brazilian real (1 real = $.31)

TAXES AND FEES

There is local transfer tax of 3 percent on this property, and notary fees are usually about 2.5 to 3 percent of the sale price, Mr. Smith said. A lawyer might charge $2,000 to $5,000, he said, depending on the property and the lawyer.

Agents’ fees are usually about 6 percent of the sale price, Mr. Gallagher said, but they are paid by the seller.

WRITE A COMMENT

The annual property taxes on this home are 2,000 Brazilian real (or about $615), and there is a homeowners’ association fee of 1,300 real (or $400) a month, Mr. Smith said.

CONTACT

Mike Smith, Brazil Beach House, 011-55-84-99993-8936; brazilbeachhouse.com

 

Sasha & Danielly...lovely swedish,brazilian couple sold their apartment in Ponta Negra,Natal with Mike

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Hello Mike,
You made us happy owner of our first apartment in Natal 6 years ago and now you have again made us happy by helping us sell it. We can not thank you enough for all the time and energy you have put into this sale. Although our apartment was not in a million class, we got the same support and service as if it were one. I know how complicated a property deal may be in Brazil but was incredibly surprised and impressed with how smooth and fast the sale went.
Thanks again Mike for making property investment in Brazil so easy for us. Looking forward to many more investments together in the future. You are a 10 stars real estate broker!