How to Buy A Beach House in Brazil in 30 days - 5 Easy Steps

Brazil Beach House Listing in 2020- https://www.brazilbeachhouse.com/luxury-villas-1/luxury-4-suite-beachfront-villa-in-exclusive-condo

Are you planning to buy a beach house in Brazil? Do you need a bit of help with the practical steps on how to purchase ? Here is a basic guide for you that I hope will make things a lot clearer.

Brazilian Real Estate has never been so cheap as the exchange rate to the US dollar, Euro and Pound hits record highs this week. Brazil Beach House is receiving more and more beach property inquiries from foreign buyers. Most of you are first-time house buyers in Brazil and not familiar with how to purchase real estate in Brazil so I have put together this easy step by step guide.

So you have been doing your research, checking out the options on-line and you have found your dream Brazilian beach house at a brilliant price in hard currency. What happens next?

How to Buy A Beach House in Brazil in 30 days

-5 Easy Steps

1) Assuming you are able to get over to Brazil, you have seen the property and still want to call it your own… You put in an offer with your Brazilian real estate broker and the owner accepts.

First step completed! Day 1.

2) The broker will draft a purchasing agreement, outlining the terms and conditions of purchase. If you are happy with the details you can sign the agreement and scan back for counter signature. On signing you are normally required to transfer a 10-20% down payment direct to the sellers account in Brazil or to an overseas account if the owner is a foreign national without a Brazilian bank account. Step 2 should take around 5 days.

3) The documents will be prepared by the estate agent and /or an appointed attorney. Documents will include the title deed and tax clearances on the property plus tax clearance certificates for the sellers ( municipal, state and federal ). Your Brazilian estate agent ( normally ) will arrange the transfer tax slip for you to pay. This is issued by local government and is between 2-3 % of the property value. Step 3 should take 15 days.

4) Providing that the documentation is all fine, all outstanding taxes have been paid and you the buyer have paid the transfer tax, the deed is issued by the notary office. You can prepare the transfer of the balance to the seller in time for the visit to the notary where you will sign the document in person. *** See below for Notary fees *** Step 4 should take 10 days.

You are 95% done !

The deed is then publicly registered at the notary where the property is located. 100% !

This can take 5 days.

5) 30 days on and you have just bought your dream house in Brazil so it is definitely time to break out the bubbly and celebrate in the Brazilian sunshine ! Congratulations !!

This is meant to be a super easy guide to buying a house in Brazil. The process can be more complicated and last longer depending on a number of things ie if the property is financed, if you need a power of attorney, if the property is located on the coastal zone and subject to additional tax, if there are some issues to be resolved with the documentation, hold ups with the bank transfers etc

That is why it is always a good idea to have an someone with local knowledge and experience of the Brazilian real estate process, in your corner whether a real estate broker or real estate attorney.

Are you thinking of buying a property in Brazil this year?

Was this guide helpful?

Do you have any questions I can help with?

If so leave a comment below and I will get back to you.

Mike Smith

Real Estate Agent in Brazil

15 Years Helping Foreign Investors Buy Brazilian Beach Homes

www.brazilbeachhouse.com

***Notary fees including deed and registration are covered by the buyer and come to between 2.5-% of the property value so total closing costs for buying a house in Brazil come to around 5-6% in general.

Buying a Beach House in Brazil in 2020 ? 5 Key Questions To Think About.

Are you thinking of buying a beach house in Brazil because of the current exchange rate ?

It is true that there has never been a better time to purchase real estate in Brazil with the US dollar getting closer to 6 reals, Brazilian properties are getting cheaper and cheaper in hard currency.

If you are an overseas Brazilian, have business connections, family ,an investment project or just want to take advantage of market conditions it is a very good idea to make plans and search for bargain buys in Brazil.

The corona virus will pass,restrictions will ease,the economy will get back on track and the Brazilian real will strengthen.This could take months even a few years but it will happen and you will have purchased a property at the right time for the best possible price.

So lets say you do decide to go for it and purchase a property in Brazil. What do you need to think about before, during and after your investment? Here are 5 key factors to keep in consideration when buying a Brazilian beach house

1) Why are you buying a beach house?

Its best to have a definite plan. Are you moving to Brazil,buying to use as a holiday home with possible retirement ,do you have friends and family that will use the beach house when you are not there.Do you have a plan to cover your costs through rentals.If so how many days,weeks,months do you need to rent for?Are you looking for capital appreciation,if so,how much do you expect o make on your brazilian investment?

2) Who is going to look after your property?

For basic upkeep, maintenance, rental management etc,do you have a support network in place of reliable people who can ensure that your home is taken care of.If not this is something you will need to look at during the purchasing process.Having someone trustworthy,living close-by who can keep an eye on things and be in easily reachable is very important.

3) Who is going to pay your bills,running costs?

This is often an issue for first time foreign house buyers in Brazil as it is not easy to open a bank account and/or pay online for utilities,services etc. It is very useful to have someone locally who can cover these costs from your money transfers via transferwise, revolut etc, especially in the first few months post purchase until you find other ways to pay.

4) How are you going to cover your costs ?

It is good to have a plan in place for short-term rentals to at least cover your property expanses.Lets say you need to pay ,a part-time cleaner,gardener,the odd mantainence job,then you have your electricity,water,property tax.perhaps cable and/or condo fees.How much will this come to monthly and how many days would you need to rent to pay these costs and do you have the support network in place?

The biggest reason for owners to sell their brazilian beach homes cheaply is because they no ,longer use them enough and the property becomes a financial liability.

4) How are you going to sell your Brazilian Home For a Profit?

This is the million dollar question! If you buy a Brazilian beach house in a desirable location with good infrastructure at the bottom of the market in terms of dollar,euro,pound value,there is a very good chance you will make a nice profit in 2-5-10 years time.If you can demonstrate that the property pays for itself from rentals,even better and if you are turning over a decent income and profit on the rentals you are in an even better position to maximize your capital gains.

I do believe that this is a brilliant time to invest in a beach property in Brazil simply because it is so cheap at the moment and there are no guarantees it will stay that way.

However buy smart and have a plan to to ensure that your investment works and does not turn into a liability.

Are you planning on buying a property in Brazil this year? Do you have any questions? Any advice you could help us with?

Please leave your comments below.

Mike Smith

Real estate consultant in Brazil

15 years helping foreign investors buy Brazilian beach homes.

www.brazilbeachhouse.com