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Why would you invest in Natal?

Discussion in 'Brazil Property' started by jamphi24, Aug 3, 2008.

  1. jamphi24

    jamphi24 New Member

    I am building a list of reasons why to invest in Natal at the moment and would love to hear peoples opinions. Please can you keep negative comments to yourselves as I am aware of them. Just looking for a list of positives here are a few examples:
    Building biggest airport in SA
    Clean air
    Safe city compared to elsewhere in Brazil
    New bridge
    David Beckhams development
    The new luxury resorts and golf resorts
    Marina being constructed
    Beautiful landscape
    Relatively cheap comapred to other holiday destinations
    Close to Europe and USA
  2. Dotty

    Dotty Banned

    It does have lovely beaches and the people are really nice,not to forget the beer!
  3. JMBroad

    JMBroad New Member

    Lets talk about the positives but keep them right - not building the biggest airport in SA, they are building an airport which is 4 times bigger than the one currently in operation and which has the capacity of then being extended to 3 times larger than that within 10 years and 3 times larger in phase 3 in 20 years +/-
    If it makes it to phase 3 then it will be one of the largest airports in the world today (in 20 years).
  4. jamphi24

    jamphi24 New Member

    Ok, apologies, so much crap around its hard to extract whats good and whats not. There must be other reasons people can add?
  5. jakob1986

    jakob1986 New Member

    close to Europe and USA?
  6. JMBroad

    JMBroad New Member

    Natal is on the "tip" of Northeast Brazil so it is both close to Europe and the US in comparison to other more southern states (further from US and EU) or more Eastern states (further from EU but closer to US)
  7. FCZ

    FCZ New Member

    Free Zones

    I believe Natal really needs a boost, and that may come with the free zone (ZPE). I have been out of this forum, so I don't know if someone post it, but it was approved. Nothing comes easy, so I have good and bad news, which one you want hear first? Louder, I cannot hear you, Huh? Ok, the bad one:
    Firms locating in the free zones will be exempt from most taxes, but not the corporate income tax (the main one), not automatically at least. Firms will be required to apply to exemption with the Developments Banks of North and NE (SUDAM & SUDENE), and then, if approved, get it. I believe this was a trick to kick the ZPEs from South of Brazil (relatively rich part, where I’m from) from receiving the benefit, because there are no such banks in the South; speculation tough.
    The good one: Firms can sell up to 20% of everything to the domestic market, even after receiving the tax exemptions; that is a good attractive for firms to locate in the ZPEs. Now is a matter of wait and see how they will justify the Corporate tax breaks with SUDAM and SUDENE.
    P.S: most NorthEast states have ZPEs, but they are not working.
  8. jakob1986

    jakob1986 New Member

    I got it...lough...anyway I would say that this is ehm a fact which does not really count.

    I mean I am totally aware of maps and from europe,I would not suggest that Natal is close to europe...unfortunatly I do not really know much about he economy in SA,not yet, can you give me some figures? like growth,centres ad products?
  9. JMBroad

    JMBroad New Member

    Just curious - why wouldn't you count proximity? And it's "close" only if you compare it to Rio de Janeiro or Sao Paulo, Buenos Aires or Santiago de Chille. We are talking about Brazil though so for Brazil, it's "close".

    Yes, I can give you all that in detail, down to what percentage of GDP is related to each product type and how the central bank of Brazil expects those products to perform under the current economic conditions. But I don't have time to post all of those at the moment as I'm snowed under with work.
  10. Blc

    Blc New Member

    Why to invest in Natal

    One could hope that the flights starting 22/12/08 Atlanta/ Fortaleza/Recife confirmed in yesterdays press and Deltas website $600 may one day stop off at Natals new big airport. i wonder why they did not choose Natal also anyone have any idea.

    Natal has some nice beaches and i love the place for a vacation..

  11. Dotty

    Dotty Banned

    There has definately been a decline in publishing Natal as an investment capital to tourists of late.The local government had put a lot of importance of investment ,financially here and overseas to bring people to Natal in the past and it appears that it has dwindled and their main focus is on brasilian nationals.

    It also needs to be said that Forteleza is immense and offers rich cultural history and incredible beaches along with Recife's historical background,which makes it more interesting for many.The same applies for Salvador.I think this has to taken into consideration when flights have been pulling out of Natal.
    That's just it Natal has some nice beaches ,but for many it's not quite enough.There are beaches all over the world!:)
  12. robh

    robh Administrator Staff Member Premium Member

    It probably has more to do with marketing and lobbying by the relevant tourist ministries. Since Thomson dropped out of Natal this year, I think the RN tourism office has suddenly woken up and decided to get back to work. Thomson have now announced that they are doing 2 flights per week next year so things are happening.

  13. Blc

    Blc New Member

    I agree with you beaches are not enough to drive the market, and the big airlines know that. Clients who purchased on the back of the new airport will feel let down that major airlines have decided against Natal for now anyway.

    The market reacts on good news and in the last 10 days the news in Fortaleza is Petrobras will invest $11 billion in Ceara close to Pecem creating jobs and new hope for the locals. This week they also said they will invest $ 150 mil on three new rigs and then thursday the news on the flights all this information was published in the Povo local paper and the tv, lets not forget the new Metro which for sure will go down well in the eyes of fifa when selecting cities for the world cup.

    I hope Natal can attract good news in the future also beause to date its all bad news, I did read this week though that Natal was the number 1 destination with cvc the tour operator but that just one company.

    ok have a nice weekend
  14. robh

    robh Administrator Staff Member Premium Member

    Another reason that AA chose Salvador, Forteleza and Recife for their new flights from Atlanta is that they already fly there from other cities in the US, which means they already have operations in place in those destinations. Much easier to do that than go to a new destination.

    The new airport is nowhere near finished in Natal, latest date is 2011.


  15. Blc

    Blc New Member

  16. Dotty

    Dotty Banned


    Natal is pratically at a standstill in terms of planning for the future and are completely out of touch to run a World Cup football match(just aswell they wiil not). Traffic congestion has quadrupled (purchasers can buy a car for 1 real and pay the 2nd payment in 3th's time).Infrastructure is poor on most roads with below standard sign-posting and blocked drains that are causing problems(even though it hasn't rained for a while.)

    Ther:confused:e has been talk of constructing a metro and trams,but it is more political than
    a serious debate and am not yet convinced.Of course if Micarla gets in might well happen .SHE'S GREAT!

    Properties and prices.If you have bought as a tourist investment to let out to another tourist to make money then things are not great at the moment as there are so many available properties for rent and for sale and most remain desperately empty and are very negotiable.

    Forteleza Buys-That's a very interesting form of property buying in Forteleza for a non-brasilian national.We don't have that in Natal they normally require a payment of 30% ,then 20% and the final 50%when hopefully the roof is on which means youv'e parted with 50% of your cash before you have a finished product!
    To be quite frank with you 30% to an developer (not being biased,but in terms of the work being completed or not is quite a big risk to take as so many have found out already,fortunately some lost less than that(10%) but it's not great by any means.
    I try to remain positive,but when you look around -you wonder where it will all lead to.

    Happy Days

  17. robh

    robh Administrator Staff Member Premium Member

  18. Dotty

    Dotty Banned

    The lower market /social properties are out in Parnamirim and beyond that have very little gain in terms of profits and not recommended for overseas tourist investors .
  19. robh

    robh Administrator Staff Member Premium Member

    I am not sure what you are talking about Dotty, but we setup the whole project for an investor, the project is then launched and sold directly to Brazilians. This isn't for your average investor as it requires at least R$1 mil up front, but the profits are extremely good.
  20. michaelbush

    michaelbush New Member

    Agreed Rob- the market is changing and my main client type is now the real investor as opposed to the holiday home buyer. We have many good lands suitable for building 'popular houses' that can be bought by Brasilians with a mortgage of up to 30 years. Agreed the areas of urban expansion is in Nova Parna***m, Parnamirim, Macaiba, Nova Natal etc. Yes there is a good profit to be made in developing these lands. Prices of land are shooting up, but there are still some very good buys for the shrewd investor. We also have some very good working Fazendas at really low prices that will give an income return from crops, cattle etc, even after all costs are taken out. eg 45 hectares just 10km from the ew airport for 300k R$, 221 ha. cattle, 50ha of Capim Pangola for 700kR$. Many more too.
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