Agent predicts growing demand for holiday homes in northeast Brazil

[Nicholas Wallwork]

With the runaway optimism created by widespread Government social housing programmes and the hosting of the 2014 FIFA World Cup and 2016 Olympics, Brazil is attracting an abundance of serious property investor attention but it is also a holiday home destination.* The northeast coastline around Natal is proving popular with second home seekers, according to [...]

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[elma]

hi,

Anyone knows anything about White Sands north of Natal from Green Planet? They sell plots. The price seems to be good, but I have never been to that area! Has anyone been there?

Thank you

 

[Coqueiro]

Real estate agency says its a good idea to buy real estate in the area they sell real estate.

Meanwhile in other news, the sun rose this morning, a bear took a dump in the woods and Pope is apparently a catholic.

 

[Sao P]

Real estate agency says its a good idea to buy real estate in the area they sell real estate.

Meanwhile in other news, the sun rose this morning, a bear took a dump in the woods and Pope is apparently a catholic.

Its so obvious its just an advertisment for this "Brazil real estate specialist UV10". Who is the author of this advert "Ray Clancy"? I see in other aticles he wrote in the past, he coincidently only likes to quote and mention UV10.

 

[Murfster]

Real estate agency says its a good idea to buy real estate in the area they sell real estate.

Meanwhile in other news, the sun rose this morning, a bear took a dump in the woods and Pope is apparently a catholic.

Exactly...not only selling but also I know one of the agents at least had bought in the NE of Brazil so it good to drum up interest for both corporate and personal reasons

...oh an apparently Liverpool have turned a corner as well (to add to your list)...although I think maybe thats for a different forum :vroam:

 

[elma]

Exactly...not only selling but also I know one of the agents at least had bought in the NE of Brazil so it good to drum up interest for both corporate and personal reasons

...oh an apparently Liverpool have turned a corner as well (to add to your list)...although I think maybe thats for a different forum :vroam:

Thank you both! Does anyone know Green Planet? They seem to be new and selling just plots for know. Do you know roughly the prices for land in the area near Jenipabu? Is it common that the deeds are held with solicitors until you decide to build or resell?

Thank you again for your help!

 

[elma]

It is NOT common that the deeds are held with solicitors until you decide to build or resell. Why are they doing this?

Regards,
Rob.

I am not sure, they say will save money and time if you are not intersted in building and you are buying just to make profit by resaling lets say in a year's time ! I think what they are trying to do is resale the plots again and again before start building and get comissions on that by just signing simple contracts! ..I... am trying to understand as well!

Thanx

 

[elma]

Thank you Robh for you help!:rock:

 

[penelopy]

Also worth a mention....a property is not yours unless you have your deeds so is at risk of being owned by the bank. It`s called Hipotica.

It will save you taxes, I have done this myself as well. The only thing you have to be sure about is that you have a good contract with the land owner (who will be keeping title to your land, not the solicitor) and that the money you paid was properly registered in Brazil.
When you sell it on, you are really just selling the rights to receive the title of the land.

Regards,
Rob.

 

[penelopy]

That would be a pretty difficult situation to get into unless you don't bother using a lawyer or the lawyer doesn't check if there are any liens on the land.

It can happen át any time with a lawyer or without só always better to have your deeds and not hold on to just your contract

 

[debzor]

Also worth a mention....a property is not yours unless you have your deeds so is at risk of being owned by the bank. It`s called Hipotica.

Actually, Penelopy, that is quite a misleading statement. Hipoteca (Hipotica in Spanish) is quite rare in Brazil being a type of mortgage secured on a property. More likely are other types of secured loan, outstanding taxes or a court judgement - but even these are unusual. Far more likely are other paperwork problems of ownership that your broker or attorney will need to address.

In any event a CRECI licensed broker must verify this as part of their due diligence, so an attorney is not even required for this. If you know what you are doing any buyer can also check against this - just take the unique matricula number for the property to the notary and ask for a certification. Takes up to 15 days and is not expensive.

Simple rule of thumb is to always use a CRECI licensed broker and/or an attorney.

 

[penelopy]

Not sure it is misleading.Construction companies borrow money ,they morgage or over morgage on money borrowed.So what you have is an overexpenditure of borrowing money to build,property sales slow,marketing poor etc on the properties that have been sold on a contract only(which is the buyers risks and the risk of the banks hipotica on the property or properties is not uncommon bur quite common. )purely because the property is still in the name of the constructor

Actually, Penelopy, that is quite a misleading statement. Hipoteca (Hipotica in Spanish) is quite rare in Brazil being a type of mortgage secured on a property. More likely are other types of secured loan, outstanding taxes or a court judgement - but even these are unusual. Far more likely are other paperwork problems of ownership that your broker or attorney will need to address.

In any event a CRECI licensed broker must verify this as part of their due diligence, so an attorney is not even required for this. If you know what you are doing any buyer can also check against this - just take the unique matricula number for the property to the notary and ask for a certification. Takes up to 15 days and is not expensive.

Simple rule of thumb is to always use a CRECI licensed broker and/or an attorney.

 

[penelopy]

You can use lawyer naturally,but as a lawyer does not have the power to transfer properties with deeds until properties are completed so you are still at risk .Much better to buy already completed rather than in construction and transfer straight away . Far less to lose.

I think the point is that if you use a lawyer this wont happen to you.

 

[penelopy]

I think you are missing the point here. Hipotica is when the judge takes the property as collatoral for not paying the bank and not the bank . Hope you understand now.The contract still remains in the name of the developer and not the buyer!!!Of which a lawyer cannot do very much.

I am impressed, it doesn't matter how much people say that you can avoid these problems by using a lawyer you still insist that the problem still exists.

I have still to find a bank that will offer money to a developer and take a property as collateral that is already under contract to a purchaser, but please show me an example where this has happened.

Regards,
Rob.

 

[JMBroad]

Penelopy, I think someone has mentioned it already but "hipotica" does not exist in Brazil. There is a "hipoteca" which is how you translate "mortgage" in Portuguese.

So if a property has a "hipotica" that means that the property has a mortgage and as Rob stated, any lawyer worth his salt will find that out during the due diligence process. In fact, just so that you know, until 2006, Brazilian law did not allow banks to repossess property if buyers defaulted on their payments, which is why most mortgages (or "hipotecas") only started in 2008.

The law changed in 2006 and on the 15th of October 2007, the first 30 year mortgage (hipoteca) was launched by Banco Santander Brasil in a revolutionary measure which made headlines around the country (you can google it). Today, a mere 3 and a half years later, Brazilians remain suspicious of the 30 year mortgage and the trend is still (amazingly) to take what is called "Developer Financing" - where the buyer pays the developer (not a bank) over ten years after the property is delivered - of course this only works on a newly built or off-plan property.

I employ "amazingly" here because interest on Developer Finance can be as high as 25% per year whereas a 30 year mortgage can be as low as 4.1% per year (on government subsidised property for example).

 

[penelopy]

Hipoteca is not in the hands of a lawyer ,but the judge and it happens in Brasil .
I am not interested in the theoretical side of things but the practical and the reality. You can buy a flat ,pay for it ,have your contract signed and sealed,but if you have`nt been able to register it (because it`s in construction) and the construction company are on the brink the judge will hipoteca your property or land and will become property of the bank.A great lawyer cannot do much even with a D.D until payment has been received.

Penelopy, I think someone has mentioned it already but "hipotica" does not exist in Brazil. There is a "hipoteca" which is how you translate "mortgage" in Portuguese.

So if a property has a "hipotica" that means that the property has a mortgage and as Rob stated, any lawyer worth his salt will find that out during the due diligence process. In fact, just so that you know, until 2006, Brazilian law did not allow banks to repossess property if buyers defaulted on their payments, which is why most mortgages (or "hipotecas") only started in 2008.

The law changed in 2006 and on the 15th of October 2007, the first 30 year mortgage (hipoteca) was launched by Banco Santander Brasil in a revolutionary measure which made headlines around the country (you can google it). Today, a mere 3 and a half years later, Brazilians remain suspicious of the 30 year mortgage and the trend is still (amazingly) to take what is called "Developer Financing" - where the buyer pays the developer (not a bank) over ten years after the property is delivered - of course this only works on a newly built or off-plan property.

I employ "amazingly" here because interest on Developer Finance can be as high as 25% per year whereas a 30 year mortgage can be as low as 4.1% per year (on government subsidised property for example).

 

[debzor]

Hipoteca is not in the hands of a lawyer ,but the judge and it happens in Brasil .
I am not interested in the theoretical side of things but the practical and the reality. You can buy a flat ,pay for it ,have your contract signed and sealed,but if you have`nt been able to register it (because it`s in construction) and the construction company are on the brink the judge will hipoteca your property or land and will become property of the bank.A great lawyer cannot do much even with a D.D until payment has been received.

Last time I looked, a mortgage (hipoteca) is granted by a financial institution, not a judge - and the courts will only get involved if a borrower is in serious default. This is the same everywhere in the world - loans are secured by the property offered for sale.

It is a 'simple' matter of due diligence to make sure you are buying a property free of lien. This can be done by yourself (as I explained earlier),is a legal requirement of a CRECI licensed broker or just ask your attorney to do it. You should do this everywhere in the world - why be different in Brazil?

Thus it is quite easy not to fall into the trap you describe, and anyway (as has been repeatedly excplained) hipoteca is still very rare in Brazil. Far more common are other paperwork problems.