Pipa Paradise (Chapadao Pipa)

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Murfster

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Hello everyone. Has anyone purchased an apartment (or thought of purchasing)on the Pipa Paradise development and have any information to share on the progress of this condominium and dealings with Delphi (the developers)? If anyone have any views at all on this development I would be very interested to hear what their opinion is...thanks
 
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robh

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Premium Member
Hello everyone. Has anyone purchased an apartment (or thought of purchasing)on the Pipa Paradise development and have any information to share on the progress of this condominium and dealings with Delphi (the developers)? If anyone have any views at all on this development I would be very interested to hear what their opinion is...thanks
Hi Murfster,

Delphi are a very solid company, but it in our experience it can be challenging for a foreigner to buy from them as they have some very Brazilian ways of working, i.e. the purchase price is not fixed but goes up according to the national construction price index.

There were some delays in the project for a while as they were having an argument with the Tibau do Sul town hall about building too close to the Chapadao, but construction is moving ahead now. We specialise in Pipa so have a pretty good understanding of what is going on there so if you have any questions let me know.

Regards,
Rob.
 
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JMBroad

New Member
it can be challenging for a foreigner to buy from them as they have some very Brazilian ways of working, i.e. the purchase price is not fixed but goes up according to the national construction price index.
Rob was actually incredibly generous in his statements. The above way of working is common amongst the vast majority of Brazilian developers. The purchase price is carried over for about ten years but the interest you end up paying on it can be astronomical.

Basic Selic (interest rate) is between 11% and 12% per annum. Developers who offer the aforementioned way of financing normally offer Selic +1 per month. That means that paying around 24% interest would not be unheard of.

Delphi is a good developer - it's just most developers work that way.
 
M

Murfster

Member
Thanks Robh. So INCC isn't standard across the board? I have a Brazilian gf who fortunately has a close family member that's a property lawyer so I was aware of INCC but thought this would be on all developments...at least those by Brazilian companies such as Delphi. I hadn't heard about the reason for the delays but was aware that they are behind schedule.

Do you know if the infrastructure around all the developments on the chapadoa is coming along as well - such as the road improvement (it was a dirt track when I was there in Feb 2008) and lighting etc... and who is responsible for these improvements...consortium of developers or local govt. etc...?
 
M

Murfster

Member
Thanks JMBroad...you answered one of my questions as I was typing it :)
 
J

JMBroad

New Member
Thanks JMBroad...you answered one of my questions as I was typing it :)
No Problem - welcome to the forums

As for your other question: INCC was always the standard way of working in Brazil as mortgages weren't available to the general population. On the 15th of October 2007, the first 25 year mortgage was introduced and as part of the PAC (Brazilian growth plan) banks started lowering interest rates, extending the duration of mortgages and making them more widely available to the population.

That has now (18 months later) resulted in mortgages for 30 years being available at as low as 9% interest per annum on some properties - which makes the INCC option mostly (but not totally) outdated and irrelevant. Today it is more important for developers to have their development approved for mortgages by one of the local banks.

INCC is still a viable option when the buyer needs financing but can't get a local mortgage (like foreigners for example). However most foreigners would object to paying that much interest.
 
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robh

Administrator
Staff member
Premium Member
Thanks Robh. So INCC isn't standard across the board? I have a Brazilian gf who fortunately has a close family member that's a property lawyer so I was aware of INCC but thought this would be on all developments...at least those by Brazilian companies such as Delphi. I hadn't heard about the reason for the delays but was aware that they are behind schedule.

Do you know if the infrastructure around all the developments on the chapadoa is coming along as well - such as the road improvement (it was a dirt track when I was there in Feb 2008) and lighting etc... and who is responsible for these improvements...consortium of developers or local govt. etc...?
Hi Murfster,

Most of the other developments around there fix their prices.

Also be aware that Delphi have put the villa part of the development on hold for the moment.

The road is supposed to be paved very soon by the local govt., I think they might be waiting until all the developments are finished before doing it so all the trucks don't rip up the road.

Regards,
Rob
 
B

Blc

New Member
No Problem - welcome to the forums

As for your other question: INCC was always the standard way of working in Brazil as mortgages weren't available to the general population. On the 15th of October 2007, the first 25 year mortgage was introduced and as part of the PAC (Brazilian growth plan) banks started lowering interest rates, extending the duration of mortgages and making them more widely available to the population.

That has now (18 months later) resulted in mortgages for 30 years being available at as low as 9% interest per annum on some properties - which makes the INCC option mostly (but not totally) outdated and irrelevant. Today it is more important for developers to have their development approved for mortgages by one of the local banks.

INCC is still a viable option when the buyer needs financing but can't get a local mortgage (like foreigners for example). However most foreigners would object to paying that much interest.
INCC\ This is a National tax on cunstruction costs updated on a monthly basis and protects the developer from inflation the last few months it has been negative.

If a Brazilian or foreigner buys off plan untill keys the monthly payments will be adjusted according to the INCC. Even if the bank finances the build you can not escape the INCC .

On completion the INCC stops and the developers finance comes into play 1% per month + IGPM inflation on the oustanding balance.

Brazilians at this stage can go to the bank and take a mortgage for the property currently 8.4%\9 The IGPM would then not apply as the devloper would get all his funds.

Over the last 5 years the INCC and IGPM has been runing at 8.5% per year.
 
D

Dotty

Banned
What happens to the foreigner who cannot get a morgage in Brasil to pay for it??
INCC\ This is a National tax on cunstruction costs updated on a monthly basis and protects the developer from inflation the last few months it has been negative.

If a Brazilian or foreigner buys off plan untill keys the monthly payments will be adjusted according to the INCC. Even if the bank finances the build you can not escape the INCC .

On completion the INCC stops and the developers finance comes into play 1% per month + IGPM inflation on the oustanding balance.

Brazilians at this stage can go to the bank and take a mortgage for the property currently 8.4%\9 The IGPM would then not apply as the devloper would get all his funds.

Over the last 5 years the INCC and IGPM has been runing at 8.5% per year.
 
B

Blc

New Member
What happens to the foreigner who cannot get a morgage in Brasil to pay for it??
Well he then continues with the developers finance 1% per month + IGPM this will work out approx 20% per year on tghe outstanding balance take this into account if you are relying on the rentals to cover your monthly payments. Non payment after 90.
 
J

JMBroad

New Member
INCC\ This is a National tax on cunstruction costs updated on a monthly basis and protects the developer from inflation the last few months it has been negative.

If a Brazilian or foreigner buys off plan untill keys the monthly payments will be adjusted according to the INCC. Even if the bank finances the build you can not escape the INCC .

On completion the INCC stops and the developers finance comes into play 1% per month + IGPM inflation on the oustanding balance.

Brazilians at this stage can go to the bank and take a mortgage for the property currently 8.4%\9 The IGPM would then not apply as the devloper would get all his funds.

Over the last 5 years the INCC and IGPM has been runing at 8.5% per year.
Not everyone uses INCC though - it isn't mandatory and I know of quite a few developers who don't charge INCC.
 
R

robh

Administrator
Staff member
Premium Member
Not everyone uses INCC though - it isn't mandatory and I know of quite a few developers who don't charge INCC.
We only deal with two developers who do charge it.
 
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