Price crash or boom ?

Discussion in 'Brazil Property' started by Greengodess, Apr 18, 2013.

  1. Greengodess

    Greengodess Banned

    Conflicting reports are always a pain,but am I correct in mentioning that propety prices in NE have already dropped by approx 30%. Just that a couple of investors have been trying to sell for more than a year now and have been having huge difficulty doing so as they say the market is so saturated and have just been offered silly money to sell :( . Yet online it states Brasil is booming and it is the place to invest ,economy strong . All knowledgable users welcome with honest answers and not ego inflated ones please.
     
  2. RainerR

    RainerR New Member

    discounts

    We have been looking around for the past 4 years.
    Although there's the currency difference, we noticed that for certain apartments and areas, the m2 price in real is about the same as a few years ago.
    Is this a tendency throughout the NE of Brazil?

     
  3. debzor

    debzor New Member

    To answer both questions, it depends on what you pay for a property, and where you buy.

    Did the sellers in question pay the local price, or some hyped-up gringo price, and did they buy wisely or not, in an area of growing demand or where there was an oversupply?

    Finally did they get licensed, independent advise and fully complete their own due diligence.

    In my experience (in the area where I work) prices have risen solidly for the past several years and are continuing to do so. I know of not one person here where I live who has not been able to sell for a substantial profit, and they are continuing to do so.

    But do not take my word for it - come and have a look around!
     
  4. Greengodess

    Greengodess Banned

    That 's interesting as most talk coming out of N.E from Brazilian agents has been huge drops in prices as there are so many empty apartments or delayed due to financial problems. Out of interest where have you been looking and what locations where s mtr is roughly the same.
     
  5. RainerR

    RainerR New Member

    You must be living in an exceptional area then.
    The sellers were actually Brazilians who have lived outside Brazil on different postings. They know the drills.

    They know the market, and the market prices (being the sales prices, not asking prices) per m2, area, quality etc.

    To make sure they'd select an agent who would be honest and professional, they had them checked out without signing a contract with them at that stage.

    Some agents already made deals with the porters in the building - varying from 800 to 3000 Reais.
    Mind you, non of these agents had signed contracts with them - it was a try out.



     
  6. RainerR

    RainerR New Member

    price drop

    Apartments that were sold for, say, 190K, 3 or 4 years ago, are on the market for about the same (negotiable) price. And these are in areas where agents promised the then buyers an annual increase of 10-15%.

     
    Last edited: Apr 18, 2013
  7. debzor

    debzor New Member

    YES! I do live in an exceptional area, I suppose, by your standard of Brazil property investment.

    But I am not talking about apartments in large cities. I have written before about the problem of over supply in this market sector, and it was not difficult to foresee this problem occurring, particularily in Fortaleza and to some extent in Natal.

    I can quote any number of EXACT purchase and sale prices (not asking prices) over the past few years, but only for my area...
     
  8. RainerR

    RainerR New Member

    I can imagine that probably only the guilty ones will feel uncomfortable when they read articles or threads in which the negative sides of their trade are discussed. Professional Agents will always have a job when they perform well and ethically, and those do not need to worry. Precisely as is the case in other professions.
     
    Last edited: May 16, 2013
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