Will we make 12% a year for 5 years?

Poll closed Apr 28, 2008.
  1. Yes

  2. NO

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Whats going on?

Discussion in 'Brazil Property' started by Simon Eaton, Apr 14, 2008.

  1. Simon Eaton

    Simon Eaton New Member

    I thought it would be interesting to see which companies people are using at the moment, and which projects they are buying from them!?

    I as most people know have just bought in Coral Beach, and am considering an apartment near Fortaleza now from a very decent developer.

    What returns are we honestly expecting to get? Are we hoping to replicate the returns of Marbella 7 years ago... will this work? or not?

    I am expecting 12% a year over 5 years. Also, if I buy now I hope the currency will stabaslise and secure my hopes. The market is so strong, and Goldman Sachs BRIC reports are fascinating. They have recently written a report described as describing the B in BRIC. they basically have high lighted why Brazil will be so good. I really trust that firm, and I am obviously swaded by their superior knowledge to most of us. Therefore I want justification from forum users for negativity over the market, and more importantly positivity.

    If we create the above, this could soon become the most valuable link in real estate investment in Brazil.

    Comments and thoughts???
  2. Dotty

    Dotty Banned

    The differences between Marbella and Brasil are enormous.Marbella is 20,00 sterling away,any problems you are there in 2hrs,Brazil is 8hrs 600 sterling and problems can and do take forever. Returns will depend on the company,who are they?what and how long have they been in the Brasilian market ?do they fully understand Brasilian law ? where ,what documents are in place,location etc.Without a solid foundation of all of these it will be extremely difficult to get off the ground as we are witnessing now.
    Returns were very high 5 yrs ago to now ,but as the prices are set relatively high to begin with there probably will not be mega increases in the very near future ,but 7%(anually) should be the figure.We are seeing over inflated pricing and nothing to show for it at the moment.
  3. sarah nash

    sarah nash New Member

    hi guys,

    I agree with you Dotty but at the same time I do see a profit of 12% IF, IF, IF.... you buy the right property at the right price.

    Also you say Brazil is 8 hours away, yes it is, if you live in the UK.

    There are people that live a lot closer, and they are also buying, I know Americans who own in Marbella, they did very well, even though it was 10 hours away or more from them.

    You can not say that the success of the market will be from the UK or European Investment solely, therefore I am optimistic that other countries will start to buy in Brazil.

    There are still some cheap properties Dotty. I also believe returns can be from ourselves investing wisely, the company are always going to sell us, its a matter of where we buy!!!
  4. RalphJ

    RalphJ New Member

    I'm american, been living in Brazil for 10 years, and my 3 business partners are British, and I've known them for more than 7 years. I can tell you, Americans do not invest in overseas properties like the British/Europeans do. When we invest in property it's normally at home. We have an enormous market and small towns are exploding into small cities all the time. Not saying Americans don't invest in foreign markets, naturally we do, but it's not even close to the rate of the likes of the Brits/Europeans.
  5. Dotty

    Dotty Banned

    Well once again,when you buy in Brasil and then sell you then have to pay taxes of 15%+ so the average will be about 7% and thats providing all your paperwork is in order and all bills paid upto date because if they are not then you will not be able to sell anyway!
  6. RalphJ

    RalphJ New Member

    For those that show a profit Dotty, yes, you have to pay taxes. Let me tell you, people in Brazil rarely show a profit when selling a piece of real estate, and when they do it's minute in comparison to the actual profit.
  7. robh

    robh Administrator Staff Member Premium Member

    I just read a report from Stratfor discussing the ramifications of the latest oil finds in Brazil, very interesting reading and should make for interesting and prosperous times in Brazil.

    As you can imagine the americans/euros are itching to get into Brazil energy as it offers them a stable source of energy without the major political headaches of the middle east.

    It was a pity that the last announcement of a find of 33 billion barrels was wrong as it would have changed everything overnight, but they have still confirmed 13 billion barrels and most likely will find a lot more there.
  8. Dotty

    Dotty Banned

    Do you not think Lula is a political headache??
  9. toupeira

    toupeira New Member

    Goldman Sachs BRIC Report

    Simon, Can you clarify something was the Goldman Sachs report the one published in 2003 based on the following

    "political maturity, openness of trade and investment policies, and the quality of education as criteria. Or has there been an update because if not the world economy has taken a dramatic downturn since then. Regds T
  10. Coqueiro

    Coqueiro New Member

    Even if the Real was still 5 to the Pound and there were plentiful cheap flights, I doubt it. It’s now 3 to the pound and the cheap flights look like a thing of the past.

    Spain and Brazil are completely different - countries, continents, economies and cultures.
    Most Anglo/Euros who would happily get by in Marbella, would not last 3 months living here before wanting to return home to a place they feel more comfortable.

    The reality of doing business and investing here is very different from Europe. It’s something you have to experience to fully understand. Many get burnt and many just go nuts trying to deal with paperwork and Catch 22s. Scratch the internet and you will find forums full of people bitter with their experiences in Brazil. (Ralph I think you used to post on one)

    Sure come to Brazil and get to know it, and if you like a place, do some research and maybe take a punt. But if you are looking to make a quick easy buck be very very careful.
  11. Raimundo

    Raimundo Guest

    Ralph is correct.

    Real estate in the US is among the best in the world. More Millionaires were created via real estate in USA than any othe country worldwide. Americans invest where ROI is the greatest, without the hassle factor. Investing abroad, for all it's accolades, can really be a hassle. Most Americans buy abroad strickly as a 2nd or 3rd home, not as an investment.

    Now about Marbello and Brazil.... That is not even on the same spectrum! Marbello, though a nice touristy place, I would never invest there. And Brazil.... the hardest country in Latin America to do business from an expat/gringo POV. The Latin countries in LA; much easier..... Brazil is to aggressive, to corrupt. They smile and like us because we have $$$ to spend. Once you stop spending, they’re not your friends anymore. Most Brazilians don‘t want to hang out with gringos.... unless you’re paying the bill.
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