Seeking Advice: Buy/Invest in Rio de Janeiro

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DGM42

New Member
Are you looking to buy in Natal as there is a webpage that is really good and the prices are as quoted RNimoveis.com - Imóveis em Natal RN BRASIL.
I am looking to buy in Brazil but probably in the south as my fiancee lives in Belo Horizonte. So I would look to buy there first maybe only so we could keep an eye on the property (or her family). My fiancee has her own apartment fully paid so it would be solely an investment property.

I have never been to the north area yet, the furthest I have been is Macieo which I thought was great and would definately consider buying there.
The other places of Interest are Rio and Buzios in RJ as I have been to these several times so know the areas and again my fiancees family can keep an eye in these areas.

With all the massive building going on in the north I fear it may end up like spain with too much over developing in beautifull areas
 
D

DGM42

New Member
It can happen - just means that the ones selling cheaper sell a lot faster and can turn around and invest in another development. The gringo thing we discussed on another thread - does happen but not because you are a gringo, it's because they associate gringos with wealthy people. If you are a Brazilian and you show up in a porsche the price will probably go even higher than a Gringo in a fiat.
Yes I agree it's not just because you are a gringo, they instantly associate us as being wealthy. I have seen first hand if they think the brazilian is wealthy the price also goes up. Best to dress down then and let the locals do the talking :)
 
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robh

Administrator
Staff member
Premium Member
Thats not as bad as I thought it might have been, still expensive compared to UK now.
But probably with the same chance to get a mortgage as they are so rare in the UK now.
I still remember the days in the UK when rates were 15% and I was paying something like over £700 per month on a £50,000 mortgage over 25 years.
Property prices are amazingly different in Brazil with an apartment in one block being 3 times the price than the adjacent block (the first one being a lot older apartment but similar in size) or is that just in BH. There doesn't seem to be any formula and course if it's a gringo asking the price suddenly rises even more.
Mortgages are becoming a bit easier to come by in the UK now, it seems that Brown's "Quantative Easing" (read printing more money) is working. Plus the US and EU member states have changed the "mark to market" rules for banks so they can lend much more.

I remember when interest rates were 21% in Australia, people were just handing over their house keys to bank managers and walking away. Property dropped about 30% in a year, of course the people that hung on made it all back plus more a few years down the track.

Regards,
Rob.
 
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robh

Administrator
Staff member
Premium Member
With all the massive building going on in the north I fear it may end up like spain with too much over developing in beautifull areas
There is a hell of long way to go before the NE coast ends up like Spain, plus if you buy in the right spot with strict planning rules you can avoid that anyway.
 
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JMBroad

New Member
With all the massive building going on in the north I fear it may end up like spain with too much over developing in beautifull areas
Amazingly enough, as corruption does exist still (A minister today was told he has to give R$ 1 million back to the state for having pocketed it instead of giving it to schools as he was supposed to) the environmental licenses are pretty strict and the local inhabitants aren't afraid to file a complaint if they think something isn't 100% legal.

Because of this I don't think we'll ever have a Fuengirola, a Marbella or a Benalmadena - but yes there will still be a lot of buildings going up where there are only palm trees at the moment.
 
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maclarke

New Member
please excuse my late reply. I'm hoping to spend 325,000 Reais on a 1 bedroom.

This is just a preliminary value
 
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maclarke

New Member
What is your budget?

hi....please excuse my late reply. I'm hoping to spend 325,000 Reais on a 1 bedroom.

This is just a preliminary value. im still trying to determine once and for all fianance options in the country
 
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maclarke

New Member
Hi All,

I'm still haven't trouble finding a reputatble and english speaking estate agent in Rio, can ayone please help at all?

many thanks

Matthew
 
J

JMBroad

New Member
I know a couple who deal with Rio, send me your email in a pm and I'll have them contact you.

Regards

John
 
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maclarke

New Member
Hi All,

the next question from me is about Mortgages.

Is there a UK bank that would be able to provide me with a "standard" morgage? Say a 10% down and a 90% of the purchase value, for example?

Im awaiting an answer from santander and HSBC. How do investors in the NE get a mortgage. Surely I should be able to do the same in Rio?
 
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JMBroad

New Member
Unless you are a Brazilian citizen or have Brazilian residency visa you won't be able to open a bank account and won't be able to get a mortgage (at least no Brazilian banks I know of currently offer mortgages to foreigners, regardless of their location in the country).

Hopefully mortgages will be available soon enough but for now none that I know of.
 
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robh

Administrator
Staff member
Premium Member
Unless you are a Brazilian citizen or have Brazilian residency visa you won't be able to open a bank account and won't be able to get a mortgage (at least no Brazilian banks I know of currently offer mortgages to foreigners, regardless of their location in the country).

Hopefully mortgages will be available soon enough but for now none that I know of.
Moneycorp are opening bank accounts in Brazil for foreigners, the cost is R$100 per month but if you need one it might be worth it.
 
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timatthebeach

New Member
Moneycorp are opening bank accounts in Brazil for foreigners, the cost is R$100 per month but if you need one it might be worth it.
dont think it will help maclarke get a mortgage though.............?? unless moneycorp doing them too ??

and to maclarke i dont know - but dont think you will get a bank (or mortgage comp.) in u.k. willing to lend on a property in brazil. I think your options are to buy with cash, or mortgage a property in u.k. then use the cash raised to buy in brazil.
 
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maclarke

New Member
dont think it will help maclarke get a mortgage though.............?? unless moneycorp doing them too ??

and to maclarke i dont know - but dont think you will get a bank (or mortgage comp.) in u.k. willing to lend on a property in brazil. I think your options are to buy with cash, or mortgage a property in u.k. then use the cash raised to buy in brazil.
Thanks tim,

I'm just wondering how other UK investors fund their investment in Brazil. I was under the impressions mortgages might be available in very rare cases with property developers.

Thanks

Matthew
 
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JMBroad

New Member
Matthew you can get a developer mortgage but the interest rates are ridiculous
 
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maclarke

New Member
Hello again all,

I've come to a brick wall with trying to fund a purchase in Rio. But I'm still curious about how UK home owners use their domestics properties to purchase in Brazil?

What if I were to purchase a place in the UK and somehow release the equity so I can get something in Rio. Is this possible?

A friend of mine exlpained this is not possible as the equity is only up to the amount of credit the buyer has put in. Is this true. Is there a someone that can explain this for me?

Many thanks

Matthew
 
D

DGM42

New Member
If you have aproperty in the UK and there is positive equity in it. FOr example the property is worth £200,000 and the mortgage is only £100,000 you can up your mortgage to say £175,000 as long as you can show to teh mortgage company you can afford the payments.]You can then use this money to buy a place in Brazil or as a deposit on a "buy to let" property in the UK with teh rest on a mortgage. The rental income would fund the mortgage and you should have some surplus rent.
This is how people in the UK funded there property empires. I know several people who have done this, but with the recession and falling house prices lenders are more wary.

I know one property company a one owner concern who has £15 million in property and owes around £5 million, he is having trouble in getting any funding in the UK to buy more property. It is difficult in the UK at the moment. But that is basically how it is done.
 
D

Dotty

Banned
You can also buy off plan and pay %'s as you go alone. That would be a cash buy at a slower pace . If you earn a reasonable salary in the U.K it shouldn't be too much of an issue in purchasing . Brasil is more expensive now than in really nice places in the UK. Amazing..........................but true!
If you have aproperty in the UK and there is positive equity in it. FOr example the property is worth £200,000 and the mortgage is only £100,000 you can up your mortgage to say £175,000 as long as you can show to teh mortgage company you can afford the payments.]You can then use this money to buy a place in Brazil or as a deposit on a "buy to let" property in the UK with teh rest on a mortgage. The rental income would fund the mortgage and you should have some surplus rent.
This is how people in the UK funded there property empires. I know several people who have done this, but with the recession and falling house prices lenders are more wary.

I know one property company a one owner concern who has £15 million in property and owes around £5 million, he is having trouble in getting any funding in the UK to buy more property. It is difficult in the UK at the moment. But that is basically how it is done.
 
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JMBroad

New Member
Brasil is more expensive now than in really nice places in the UK. Amazing..........................but true!
Wow. I don't know prices in the UK at the moment but prices there must have dropped by around 90% to be comparable to Brazil! Unless you are comparing central Rio or Sao Paulo vs central Herstmonceux, Sussex?

You know what - I just did a quick search and you may be right. A 25 m2 studio in a basement in Notting Hill (I think that qualifies as a really nice place) now only costs 250.000 € - what a bargain! I wonder what I could get in Brazil for R$ 700.000...

Of course I could save a bit of cash and purchase a 30 m2 studio in Teddington "in need of modernisation" - that would only set me back a mere 163.000 € or R$ 458.000 and provide me with hours of fun as I modernise my home.

Or I could buy a two bedroom 120 m2 apartment in Rio second line to Copacabana beach but that would set me back a whole 125.000 € or R$ 350.000 - so that would just be plain silly - wouldn't it?

Dotty, we really do need to have a coffee together because I do sometimes feel like you are talking to the wrong people here in Brazil.

Random searches on Foxtons for London and Monsarda.com.br for Rio
 
D

Dotty

Banned
John an average 3 bed (off plan NEW are now selling at 390,000 ).Now in relation to low pay in Brasil that's quite a hefty sum.You can purchase fab homes in the UK at rock bottom prices(lower than in the 1980's) for the same money and have excellent returns when the crisis eases.Speak to any foreigner who lives out here and there eyes are now on purchasing back in the UK!
Wow. I don't know prices in the UK at the moment but prices there must have dropped by around 90% to be comparable to Brazil! Unless you are comparing central Rio or Sao Paulo vs central Herstmonceux, Sussex?

You know what - I just did a quick search and you may be right. A 25 m2 studio in a basement in Notting Hill (I think that qualifies as a really nice place) now only costs 250.000 € - what a bargain! I wonder what I could get in Brazil for R$ 700.000...

Of course I could save a bit of cash and purchase a 30 m2 studio in Teddington "in need of modernisation" - that would only set me back a mere 163.000 € or R$ 458.000 and provide me with hours of fun as I modernise my home.

Or I could buy a two bedroom 120 m2 apartment in Rio second line to Copacabana beach but that would set me back a whole 125.000 € or R$ 350.000 - so that would just be plain silly - wouldn't it?

Dotty, we really do need to have a coffee together because I do sometimes feel like you are talking to the wrong people here in Brazil.

Random searches on Foxtons for London and Monsarda.com.br for Rio
 
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