R
robh
Administrator
Staff member
Premium Member
Hi Frank,
Is that 12% gross or net? What is the seasonal difference in occupancy rates and the yearly occupancy rate?
Regards,
Rob.
Is that 12% gross or net? What is the seasonal difference in occupancy rates and the yearly occupancy rate?
Regards,
Rob.
Frank_London
New Member
Hi Rob, I have checked with some local real estate brokers and ABIH/SC and the average rental is 12% per year gross. The seasonal difference in occupancy is around 50% and the yearly occupancy rate is 75% (estimated to 2009 and 65% in 2008).
In addition, you can have additional information in this recentr New York Times' article:-
Florianopolis Travel Guide - Hotels, Restaurants, Sightseeing in Florianopolis - New York Times Travel
In addition, you can have additional information in this recentr New York Times' article:-
Florianopolis Travel Guide - Hotels, Restaurants, Sightseeing in Florianopolis - New York Times Travel
C
Coqueiro
New Member
If a Brasilian holiday let property is achieving an annual 75% occupancy it should easily earn more than 12% gross. I would be extremely happy to achieve 75% anywhere, especially in a beach destination that is cold for a good part of the year.
75% annual occupancy is hard figure to achieve unless you are giving it away in low season, or have contracts with tour operators like CVC, who will pretty guarantee occupancy levels.
75% annual occupancy is hard figure to achieve unless you are giving it away in low season, or have contracts with tour operators like CVC, who will pretty guarantee occupancy levels.
Frank_London
New Member
Hi Coqueiro,
I totally agree with you.
Once you have decided for the rental scheme it's wise to offer your property to local real estate brokers with tour operators' partnerships to guarantee medium/high occupancy levels.
I totally agree with you.
Once you have decided for the rental scheme it's wise to offer your property to local real estate brokers with tour operators' partnerships to guarantee medium/high occupancy levels.
C
Coqueiro
New Member
An operator like CVC block books flights and runs charter flights, so if the market goes quiet they run promotions and very cheap deals to fill the flights and thus accommodation. Customers get a cheap deal and can pay in interest free installments over 6-12 months.
The disadvantage of working with a large operator is that they will expect hefty mark downs and they need owners who have multiple units.
A local or small/medium sized national agent will take a smaller percentage and work single units, but does not have the pure room filling power of a monster like CVC.
Do any of the agents on here achieve 75% occupancy for their clients in the holiday house/apartment market? What do you consider a satisfactory annual %?
The disadvantage of working with a large operator is that they will expect hefty mark downs and they need owners who have multiple units.
A local or small/medium sized national agent will take a smaller percentage and work single units, but does not have the pure room filling power of a monster like CVC.
Do any of the agents on here achieve 75% occupancy for their clients in the holiday house/apartment market? What do you consider a satisfactory annual %?
R
robh
Administrator
Staff member
Premium Member
We usually quote 65% occupancy and 8-10% return for Pipa which has two seasons, so 75% and 12% in a one season town sounds a bit high to me, but I would really have to see some proper figures.
The other thing to take into account is that your rental return against your original purchase price increases as rents increase (so watch where you buy!). I have friends who after 7 years are now getting 40-50% p.a. returns on their apartment.
Regards,
Rob.
Usha
New Member
Hi everyone,
I am totally new here. I am Brazilian, from Florianopolis (Floripa),currently in Florida, but have adopted Maceio (due to ocean temperature) as my home base in Brazil.
I am here to learn. I am an architect with a full time job, and a novice real estate investor. I do have one property in Floripa. It is rented at 0.4% a month of its value. Only keep it because I do not know what to do with the money if I sell.
There are only 2 (almost) sure ways to make money in that market:
1. build to sell for low to middle income
2. invest on a perfect location apartment when it is launched (imovel na planta),and then sell it when it is finished. Beware: you have to be sure it will be finished (check if the construction company has insurance),and if the best units are not being held by the construction company (they usually are). these units will be your tough competitors at the time of the sale, because they will sell it financed while you want cash.
BTW, I accept the low return rate in rent in Floripa because there we are almost sure of the property value increase. Jurere Internacional gave back 1000% to its early investors!
good luck in that market! And remember, it is only warm there 6 months a year, and the beaches are only a pleasure to swim around 3. But it is the best city in Brazil for people that do not mind the cold weather.
I am totally new here. I am Brazilian, from Florianopolis (Floripa),currently in Florida, but have adopted Maceio (due to ocean temperature) as my home base in Brazil.
I am here to learn. I am an architect with a full time job, and a novice real estate investor. I do have one property in Floripa. It is rented at 0.4% a month of its value. Only keep it because I do not know what to do with the money if I sell.
There are only 2 (almost) sure ways to make money in that market:
1. build to sell for low to middle income
2. invest on a perfect location apartment when it is launched (imovel na planta),and then sell it when it is finished. Beware: you have to be sure it will be finished (check if the construction company has insurance),and if the best units are not being held by the construction company (they usually are). these units will be your tough competitors at the time of the sale, because they will sell it financed while you want cash.
BTW, I accept the low return rate in rent in Floripa because there we are almost sure of the property value increase. Jurere Internacional gave back 1000% to its early investors!
good luck in that market! And remember, it is only warm there 6 months a year, and the beaches are only a pleasure to swim around 3. But it is the best city in Brazil for people that do not mind the cold weather.
T
Tekneeks
New Member
I am going to be in floripa december 28- january 6th i would love to look at some investment property with financing opportunities and rental ideas. any suggestions on reputable companies to work with ??
Usha
New Member
Dear Tekneeks,
It looks like no one would like the liability of referring someone to you.
I will give my 2cents, actually 4, LOL:
1. don't say you are a buyer, you will make too many "friends"
2. most of the real estate agencies in Floripa are reputable, but, as all of us, they do not have a crystal ball, they will tell anything (they think) you want to hear.
3. pay attention to what Coqueiro says above. I was in Floripa in July (winter break for Brazilians) and everything was empty, even Jurere Internacional. However, I went to Costao do Santinho, and there was a small crowd there, but I don't know what it meant in occupancy. BTW, the conditions of the resort were pretty bad, broken door handles in the women's bathroom , and the units needed paint.
4. house rental in Jurere internacional is really expensive, check this site:
Aluguel de Temporada, Imobiliarias em Florianopolis, casas e apartamentos nas praias de Jurere Internacional, Praia Brava, Canasvieiras, Cachoeira, Ponta das Canas, Lagoinha, Praia de Daniela!
but I have no idea if it is worth as a pure investment
We have a house with a gorgeous view to the ocean, but since we are not in Jurere we really only can be sure of renting it for New Year and Carnival holidays. The other times is not as easy, so we gave up renting it (the renters kind of make a mess of the place).
It looks like no one would like the liability of referring someone to you.
I will give my 2cents, actually 4, LOL:
1. don't say you are a buyer, you will make too many "friends"
2. most of the real estate agencies in Floripa are reputable, but, as all of us, they do not have a crystal ball, they will tell anything (they think) you want to hear.
3. pay attention to what Coqueiro says above. I was in Floripa in July (winter break for Brazilians) and everything was empty, even Jurere Internacional. However, I went to Costao do Santinho, and there was a small crowd there, but I don't know what it meant in occupancy. BTW, the conditions of the resort were pretty bad, broken door handles in the women's bathroom , and the units needed paint.
4. house rental in Jurere internacional is really expensive, check this site:
Aluguel de Temporada, Imobiliarias em Florianopolis, casas e apartamentos nas praias de Jurere Internacional, Praia Brava, Canasvieiras, Cachoeira, Ponta das Canas, Lagoinha, Praia de Daniela!
but I have no idea if it is worth as a pure investment
We have a house with a gorgeous view to the ocean, but since we are not in Jurere we really only can be sure of renting it for New Year and Carnival holidays. The other times is not as easy, so we gave up renting it (the renters kind of make a mess of the place).
debzor
New Member
Unless you are going for off plan and developer finance, you may find the 'financing opportunities' part of your plan difficult. Builders often offer this but at rates that will make you cringe, and there is no other option for foreigners.
Frank_London
New Member
Hi Tekneeks,
How about your travel to Floripa ? Any good news to share with us.
How about your travel to Floripa ? Any good news to share with us.
