Hi Folks,
Just looking for your opinions on the property market in Sao Paulo V's North East region- Natal etc.
I am interested in purchasing a buy-to-let property and therefore thought Sao Paulo to be the better option?
It seems the North East might suffer from over supply shortly at the rate at which these 'beach front' properties are being completed.
Any of your comments would be greatly appreciated.
Owen.
The main things you'll want to consider when purchasing a "buy to let" property anywhere are occupancy and yield. If you price the rental to achieve 20% rental returns but only manage to rent it out during two days of the year or if you can rent out your property all year round but even with that occupancy you only achieve 2% rental returns then of course you've chosen the wrong property or the wrong location. Obviously more expensive properties require more expensive rentals.
It is very difficult to know where you are most likely to achieve maximum yield and occupancy without knowing the local market in depth.
Both Sao Paulo and the Northeast are currently very attractive investment areas - the local population in both areas is very strong and I'm sure there are good deals to be had in both areas. Sao Paulo is a vast city however so it may be harder for someone not living in Brazil to come to terms with the numerous neighbourhoods and the intricacies of the market.
The cities in the Northeast of Brazil are much smaller and (at least Natal) has no real favelas to speak of - making the understanding of the market a lot easier.
On another note - the reason the northeast has so many "beach front developments" being built is because Brazilians from Sao Paulo and Rio have their holidays in the Northeast - in the Northeast the climate almost doesn't vary - in Sao Paulo and Rio de Janeiro there is a big difference between Summer and Winter.
Also, if you want to spend any time in the property yourself, the climate and security of the northeast is generally more appealing - although if you love big cities, you may well want to head to Rio or Sao Paulo
