Seeking Advice: Buy/Invest in Rio de Janeiro

Discussion in 'Brazil Property' started by Raimundo, Feb 3, 2008.

  1. Raimundo

    Raimundo Guest

    Greetings,

    First off- I'd like to say this Board, TotallyProperty has a lot of wonderful, good, common, basic information for investors looking to invest abroad or outside the US and I'm honored to be a posting member here. That said, I want to take this time to thank the Board owner, his Moderators and all the highly intelligent posters. About me: I'm traveling to Latin America and Brazil since 1999, and was married to a Latina from South America. I'm searching for two years to buy a nice Flat in Rio de Janeiro. Yea, Rio is expensive and I looked outside RJ, the south of Brazil and the northeast. But I keep coming back to Rio. On a side note; I (private investors) was involved in a scam land deal outside Natal in 2002--a hard lesson learned and a new insite gained/learned into Brazilian real estate mentality. All this said, I want to 'hear' about other investors investing/buying in Brazil. How did you invest and with whom? Did you go it alone or with local help? Where did you find trustworthy people in the real esate business (in Brazil)? And lastly, what do you think about the real estate market in Rio de Janeiro?

    Thanks in advance for your time.
     
  2. mitico67

    mitico67 New Member

    Hi Raimundo, I myself I'm thinking to buy an apt in Rio. I've been visiting and looking into Natal and the north est but it seems to me that at the moment if one expect a decent rent it's going to be quite difficult.The potential (and planned) supply is
    so incredibly large when compared to the current market. Early 2007,
    all tourism projects together announced well over 40000 new units.
    Compared with a market that sells less than 2000 units per year on
    average, by no means is there any guarantee that prices will go up. That's why I've started looking into Rio. I've found a 3bed apt based in Arpador, which is between Ipanema and Copacabana, and it seems quite interesting. One of the downside is that the building was built in 1970 and I've read somewhere to be extremely carefull in buying property ante 1976 as it seems that could be problem with registration. A friend of mine will check the condition of the apt next week. I've also found out that a cousin of a friend of mine got an estate agent in Rio and I'll ask him to give me real potential income that could come from the property.Any more info from members about Rio is most welcome
     
  3. Raimundo

    Raimundo Guest

    42 views.... and two viable people responded? How about some feedback here folks, please?

    All this 'experience' on TotallyProperty.... :confused:

    Thanks! :D
     
  4. JMBroad

    JMBroad New Member

    I can only speak for myself when I say that Brazil is far too large a country for pretty much anyone to know every state and city. Most people on the forums seem to be focusing on the Northeast of Brazil due to the proximity to Europe and the US. However 42 views means there are a lot of people who are also interested in whatever anyone who does know the market has to say.
     
  5. ady1231

    ady1231 New Member

    well;

    I have seen your posts on property in Fortaleza as well, My advice, is that you will need to concentrate on ONE part of Brazil, we are interested in the NE because its where brazilians go for Holidays, and it's proximaty to Europe.

    As for Rio, i think it's a bit expensive, and you will need to risk alot of money to invest there + security issues, ever thought about that?
     
  6. John Miller

    John Miller New Member

    in referance

    I agree, with the two previous posters, but there are 2 issues.
    1. the northeast is good for tourist and travelers, but no guarentees on rentals all year long.

    2. the people of Rio are in need of better accomodations or second homes as there is a void in the developments in the area. As the interest rate goes down every .5%- 2 million people will be able to afford a mortgage.

    there are companys in Rio that offer 20% buy back guarentee as well and they start at about £42,000, not bad if you compare what you get in the northeast
     
  7. JMBroad

    JMBroad New Member


    Because of the current political and economic situation in the country, there are numerous areas which offer fabulous investment opportunities. For Europeans, purchasing overseas can often be a combination of personal use and investment (personally when I buy in Brazil I'll be looking for a place which not only fills my investment requirements but which I could also use as a temporary/semi permanent base when needed.) For that reason I've focused more on the Northeast.

    But I would be very interested on a personal level to hear more about the conditions and offers in Rio. Although I don't think as a company we'll be looking at promoting property in Rio too soon, one should "never say never"!?
     
  8. Raimundo

    Raimundo Guest

    Why Not Invest in Rio de Janeiro?

    Ladies & Gentlemen -

    Why is Rio not even in the fold on Totallyproprty.com?

    Is there a reason why people are not interested in investing in Rio de Janeiro? I'll admit that finding a bargain in Rio is difficult, with violence and favellas escalating each year. But Rio has all the things a guy could want, but high prices, favellas and security issues plague the city not to mention (I think) over-hyped friendliness of locals i.e. cariocas. Rio is a wonderful city.... but???

    Comments? :confused:
     
  9. maclarke

    maclarke New Member

    Rio apartment

    Hi John, I live in London and am thinking of investing in Rio. Do you have an email for your development company so i can get some info?

    cheers

    Mattew
     
  10. JMBroad

    JMBroad New Member

    Wow nice find with this post - luckily I added that part on the end "never say never" - turns out I ended up doing basically the same as John Miller but in the Northeast.

    Maclarke - you'll need to make another 4 posts before you can receive personal messages - as we don't allow advertising on this part of the site and we try and protect personal information so John Miller won't be able to put his website or email address in a thread - once you've made 4 more posts he can PM it to you.

    Good luck with your investments
     
  11. DGM42

    DGM42 New Member

    I am interested in Rio and Belo Horizonte.
    Been to Rio 3 times and love it, yes you have to be careful there.
    I felt much safer walking around Inpanema than I did in Copacabana.
    I found most people very friendly and helpful and told us where not to go and waht to look out for etc. There seemed to be more tourist police around Inpanema than Copacabana.
    Also does any one have any details of property in Buzios, longer term that is where I would like to buy as well.
     
  12. maclarke

    maclarke New Member

    Hi all, can anyone please direct me to a "good" and trustworthy website that shows a good range of properties for sale in Rio de janeiro along with a decent management company (as I live abroad in England)?

    Thank you guys
     
  13. Frank_London

    Frank_London New Member

    Hi Raimundo, I would recommend you to deal with large local real estate brokers. There are many in Rio de Janeiro and they advise foreign estate companies like Sotherby's (now with three offices in Brazil). Rio de Janeiro is affordable and easier to sell and make some profit than a property in a small location in the northeast of Brazil.
     
  14. Dotty

    Dotty Banned

    Investors have been dealing in the North East of Brasil on a larger scale than in Rio .So I would imagine (considering Brasilians)are also buying second homes in the N.E you are more likely to sell in the N.E than in Rio to any nationality,not quite at the speed in the past,but the chances are most likely to be higher.
     
  15. robh

    robh Administrator Staff Member Premium Member

    Sotherby's is a franchise.

    Not sure about Rio being more affordable though nor more profitable.

    Which law firm do you work for Frank?
     
  16. Frank_London

    Frank_London New Member

    Hi Robh,

    I am a small private investor and thinking to buy a property in Brazil.

    Regards
     
  17. maclarke

    maclarke New Member

    Hi Frank,

    I see that you "thinking" of buying a property in Brazil, but you have given advice on using large real estate brokers. Have you been actively looking to buy or is this just research?

    A note to all - I am very interested in buying a property in Rio (preferably not a new build) and renting it to large international companies to house their employees. I have had contact with an estate agent who is willing to assist me with everything from the purchase to management.

    I am going to invest in the long term and would love to hear your stories - I will share with you my progress as it happens.

    At the present time (and after reading other posts) I am considering having a UK based, Brazilian lawyer to assist me - Do you think it is necessary?

    Hope to speak to you all very soon

    Matthew
     
  18. robh

    robh Administrator Staff Member Premium Member

    Someone told me that you used to work for Max Gold, but maybe they were referring to someone else. My mistake.
     
  19. JMBroad

    JMBroad New Member

    Hi Matthew

    Do you speak Portuguese fluently?
    Have you made purchases in Brazil before and are familiar with the process?
    Have you worked with the agent/developer who you are considering buying from before on other deals and are happy with the service provided to you on those deals?

    If your answer to all of the above is an unequivocal "yes" then you may be at ease to work without legal representation as many locals do - however if you hesitated before answering yes to any of the above - retain legal advice - preferably with a company who has offices in both countries.

    Just as a matter of interest - and I haven't done any research at all with regards to rental possibilities in Rio de Janeiro - but just first impressions off the cuff... Why are you considering focusing your investment on the international market - the domestic market is so much more vast than the international one, especially in the current market conditions. Buying a property to then rent to foreigners living in Brazil may potentially generate higher income in the short run as foreigners can (normally) afford higher rents however I would imagine the risk ratio (purely regarding supply and demand - whether you can actually rent it out all year) is so far off the charts when compared to the local market that it would concern me.

    Given that the current economic concerns have affected the rest of the world so much more than it has affected Brazil - I would therefore assume that the first people to stop looking for rental properties (anywhere) will be foreigners - domestic market will still need places to live.

    Also, new build vs existing build - is that to ensure that the builder actually completes or another reason?

    Just curious - good luck with your investment

    John
     
  20. Frank_London

    Frank_London New Member

    Hi Robert,

    Sorry for the delay to come back to you on this. I was reading threads from others countries and forums.

    I still do recommend investors to deal with large local real estate brokers.

    In addition, I never paid or received referrals from this firm.

    Regards,

    Frank
     
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