Euronatal and Sun Towers

[paddy1971]

Hi,

I would be intersted in hearing from anyone who has purchased a property or knows the above developer. I have investment properties all over the world and my strategy has been to buy from reputable developers who offer incentives or guaranteed rent.
To date Brazil is the only place, I am having a problem, being outshined by countries including India, Malaysia, Poland, Morroco, Germany and Thailand, all of whom are pushing Foriegn investment.

Sun Towers sells itself on Dubai style living, made up of three towers it is on the outskirts of Natal, and 2km from Ponta Negra Beach.

The deal was a 5 year rental yield at 5%. My apartment was completed in August last year when the yield was supposed to begin.

I have contacted my lawyers Manzares and the Developer on several occasions, but to be honest - they appear not to care less. The UK agent is no longer around which is expected, but these guys would be no help anyway.

My intention now is to post this thread on a number of forums, and I have already recommended friends and family who are looking to invest not to buy in Brazil, and to look at the countries above.

If anybody has any info, suggestions, or rental agents who would feel they would be able to obtain a good yield on this 2 bedroom property with garage, please contact me.
I am not looking to pull out for a while, so future big revenues for the world cup would be there - I cannot believe this developer has missed that opportunity but hey - ho.
Look forward to hearing from you.

 

[trawler1]

Sun Towers Brazil

Hi!. There interested in your situation as the development you mention is still being advertisted with a 5 % over a 5year deal.

Surely there must be something you can do ie, sue the developers, as I guess you're still paying for the up keep of the property.

You don't seem to be worried at all about the situation.

Are you sure the apartment has been built?.

Trawler1:

 

[JMBroad]

Hi,

I would be intersted in hearing from anyone who has purchased a property or knows the above developer. I have investment properties all over the world and my strategy has been to buy from reputable developers who offer incentives or guaranteed rent.
To date Brazil is the only place, I am having a problem, being outshined by countries including India, Malaysia, Poland, Morroco, Germany and Thailand, all of whom are pushing Foriegn investment.

Sun Towers sells itself on Dubai style living, made up of three towers it is on the outskirts of Natal, and 2km from Ponta Negra Beach.

The deal was a 5 year rental yield at 5%. My apartment was completed in August last year when the yield was supposed to begin.

I have contacted my lawyers Manzares and the Developer on several occasions, but to be honest - they appear not to care less. The UK agent is no longer around which is expected, but these guys would be no help anyway.

My intention now is to post this thread on a number of forums, and I have already recommended friends and family who are looking to invest not to buy in Brazil, and to look at the countries above.

If anybody has any info, suggestions, or rental agents who would feel they would be able to obtain a good yield on this 2 bedroom property with garage, please contact me.

I am not looking to pull out for a while, so future big revenues for the world cup would be there - I cannot believe this developer has missed that opportunity but hey - ho.

Look forward to hearing from you.

Hi Paddy

Seemed I missed your questions somehow.

Couple of questions and comments - "Sun Towers sells itself on Dubai style living, made up of three towers it is on the outskirts of Natal, and 2km from Ponta Negra Beach."

Natal is (I am very pleased to say) nothing like Dubai. There is absolutely no way to link the two destinations with any logical coherence so whoever told you that hadn't got a clue what they were talking about. Dubai is tightly packed tower buildings one next to another and based on something Walt Disney seems to have dreamt up while on LSD. Each tower trying to outdo the other with regards to insanity and leisure areas to make even the wildest party animal cringe. Sun Towers on the other hand are three very modest tower blocks in the middle of a low rise neighbourhood on the outskirts of Natal and geared towards the local population - a city with less than 1.000.000 inhabitants and whose most exciting tourist attraction is a 8.000 m2 cashew nut tree, a buggy ride over the sand dunes and a ride on a dromedary camel. There are plenty of reasons to visit Natal and even more reasons to live here but I can't think of a single one that compares with Dubai.

The Sun Towers development is made up of three towers however it is not 2 kms from Ponta Negra Beach, it's roughly 5 kms from Ponta Negra beach (as the crow flies) - by road it's a little bit further - maybe 7 kms.

Your lawyers would be expected to ensure that the development was legally sound - whether it was 2 kms from the beach or 10 kms from the beach they would only have checked if you specifically asked them to. Also, they only would have legally bound the developer to the rental agreement if you had asked them to.

It would probably help us if you give us the figures in R$. You have a rental guarantee (I assume you signed a rental agreement contract with the developer on exchange of private purchase contracts?). What price did you pay for the apartment? 5% of that per year would be equal to how much per month? Was the rental guarantee negotiated to be net or gross of condominium fee's and maintenance fee's?

Sun Towers is a nice development in a nice location so it all depends on what price you paid for the apartment. Assuming you paid market value you may well do very well on your investment and it may well be possible to earn a 5% annual rental yield.

With regards to advising your friends and family to invest in places other than Brasil - doing that may turn out to be a bit harsh - especially if you are recommending they invest in India for example - a country where it is illegal to own land unless you are either a Person of Indian Origin (PIO - aka you have indian descendents) or you are a Non-Resident Indian (NRI - Indian citizen currently living outside of India). Yes, there are "creative ways around that" however if you are caught by the Indian authorities, you risk losing your whole investment - something which won't happen to your Sun Towers investment.

Morroco there are some interesting developments being built - I assume you invested in one of the Cote Azur developments - probably Saïdia? Very nice development but with such a vast amount of units being built in the middle of the desert - and something where obviously the locals aren't going to be living, the rental yields and exit strategy are what concerns me. Given that you need to be able to sell your unit after all the capital appreciation to actually make a profit. Owning a much more expensive unit but not being able to sell it means you've actually made no profit at all. And with so many units built next to each other (and with those huge luxury hotels on the same development - where are all the renters coming from)

I don't know what you bought in Germany either but am assuming it's a long term rental yield property bringing in quite modest returns - surely less than are achievable in Brasil?

As for Trawlers question - I believe the last tower is currently being built.

 

[ronniesar]

Euronatal suntowers

Hi,
I too seem to be in the same situation. Neither Manzanares nor Euronatal seem to be intersted in the rental guarantee which was undertaken /given at the time of purchase.
The service charges are quite high and having an empty property and also paying the community charge is something I never contemplated.
What are the options ?
Would selling be the right thing to do ?

I have been informed about rental agencies in Natal who would be able to rent out the apartment easily , but contacting them from Europe and getting everything done with the language issues is proving very difficult.

Totally confused on this matter and would like some suggestions !

ronsar

 

[globalinvestor]

thinking of buying in natal - can anybody provide any recomendations near the beach

thanx!

 

[Norbert]

Hi,

I would be intersted in hearing from anyone who has purchased a property or knows the above developer. I have investment properties all over the world and my strategy has been to buy from reputable developers who offer incentives or guaranteed rent.
To date Brazil is the only place, I am having a problem, being outshined by countries including India, Malaysia, Poland, Morroco, Germany and Thailand, all of whom are pushing Foriegn investment.

Sun Towers sells itself on Dubai style living, made up of three towers it is on the outskirts of Natal, and 2km from Ponta Negra Beach.

The deal was a 5 year rental yield at 5%. My apartment was completed in August last year when the yield was supposed to begin.

I have contacted my lawyers Manzares and the Developer on several occasions, but to be honest - they appear not to care less. The UK agent is no longer around which is expected, but these guys would be no help anyway.

My intention now is to post this thread on a number of forums, and I have already recommended friends and family who are looking to invest not to buy in Brazil, and to look at the countries above.

If anybody has any info, suggestions, or rental agents who would feel they would be able to obtain a good yield on this 2 bedroom property with garage, please contact me.
I am not looking to pull out for a while, so future big revenues for the world cup would be there - I cannot believe this developer has missed that opportunity but hey - ho.
Look forward to hearing from you.

What did Manzares and the Developer tell you when you contacted them?

 

[gooner1971]

neither are interested.