miss the Brazilian real estate boom!
With the European property boom ageing a little, and with the very strong
now may be the perfect time to diversify your portfolio and invest part of
the next boom market: Brazil.
We are a team of European and Brazilian specialists, whose aim is to
best opportunities for real estate investors, and to look after their
- all the way until the exit.
Being focused on investors, our approach is quite different from
real estate agents. We select realty based on market price evolution,
ROI, time horizon, risks, and exit strategies. The best investment for you
be one of the 'dream homes' that Brazil has on offer, but it can just as
an off-plan investment, a land development project, a hotel or a commercial
property. Whatever your investment profile is, we'll make sure you'll get
right deal - and the right profits.
up on the Brazilian real estate
for private capital due to limited availability
Brazil's financial institutions are burdened with an enormous debt
the past, and both the national bank and the commercial banks have only
resources to fund investments in the country's industry.
Western banks collect cheap money via the savings deposits from the
consumer, and then make them available to the entrepreneurial world.
banks can not rely on this cheap source of money, and the rich minority has
taken over the role of financing industry - and real estate -
And obviously, as demand by far outstrips the available supply, the
offered to capital investors is high.
Off-plan investments in new
Many developers, especially those selling condominiums, offer
payment schemes which present a nice opportunity for investors. Many
allow you to buy apartments off-plan, i.e. before or during construction,
the price is still low, and with down-payments totalling no more than
the property price.
By the time the property is finished, it will command a higher price
because of market price increases and the higher appeal of a completely
house. This means that investors can 'flip around' the property around
completion time to an other, 'final' buyer. Doing so, you can pocket a
increase of 15 or 20% - while you have never paid up the full amount.
on the downpayment, and speed of construction, profits on these deals can
from 40 to 100% per year!
Even if, in a 'worst case' scenario the property can not be sold
completion, the balance to be can usually be financed (often by the
himself), typically over 6 years or so.
Low property transfer costs
Brazil only applies a 2% transfer tax on real estate property - which
transaction costs among the lowest in the world.
Extremely advantageous exchange rates
In the distant
past, the Brazilian currency was artificially linked 1:1 to the US$ - and
prices still reflect these old price levels. However, over the past few
has stabilized around 3 real. As a result, 100000$ will buy a house
The Brazilian GDP hides a sizeable upper class with world-class buying
Brazilian GDP is only some 4000$ per inhabitant, it's social inequality
large aflluent class that has a buying power that at least rivals the
and US consumers.
In fact, wealth in Brazil is extremely badly distributed.
10% of the population owns no less than 50% of all resources, and on the
hand 50% of the population must make-do with no more than 10% of the
If one applies these ratios to the GDP, the wealthiest 10% (some 16
consumers, concentrated in the South: Rio, Sao Paulo, Belo Horizonte) have
per capita of at least 20000$ - quite comparable to most of Europe or the
And in fact, their standard of living is even higher: as the cost of
much much lower, 20000$ buys a lot more luxury than we can
Moreover, the rich keep getting richer; not surprisingly if you
have a labour force at their disposal who'se monthly wage is just some
Limited Social, Political and Economical
Brazil is a
highly catholic, peaceful, democratic culture, quite unlike other
In spite of huge social inequalities, and well-known corruption, there is
no social violence.
For the past few years, Brazil has been wisely and succesfully using
monetary and fiscal policy, and it has mastered the control of inflation
currency rate, in spite of astronomic international debts from the past.
Brazilian tourism market set to
Brazil didn't realize its huge tourism potential until a few years ago -
has understood it can create an enormous influx of capital and has started
exploit its touristic potential.
And what a potential!
Just reflect on what makes destinations interesting for
tourism, and you'll realize that Brazil literally has it all - sunshine,
culture, access, and infrastructure.
First of all, sunshine. With its 8000 km of coastline, stretching from just
above the equator to milder climates further south, Brazil has lots of
all year long.
Its beaches, usually white sands lined by palm trees, and often with
views over some islands just outside the coast, only compete with the
Brazil also has more than one third of the world's fresh water
reserves - and
that is visible in the thousands of rivers, suitable for bathing or
The Carnaval of Rio and Salvador, the famous 3 km wide waterfalls of
Amazon, the Brazilian music and dance add attractions of a level and range
can simply not be found in most destinations of the Caribbean.
All major operators have realised this now, and five-star resorts
like Costa do
Sauipe near Salvador feature resorts by Marriott's, Sofitel Renaissance,
It is also quite meaningful that The Club Med has only 3 resorts in South
America - all 3 of them in Brazil - and two of them are brand new resorts
south of Bahia, near Salvador and Porto Seguro.
Tour operators are also massively adding Brazil to their offer; and
scheme of charter flights covers Natal, Recife, Fortaleza, Salvador and
investments are more risky than investments in your home town - if you do
On your own, you
probably don't have the language skills, you don't understand the culture,
economy and politics of the country, you don't know the real market
you don't know the legal system. And it may not be worthwile, to go and
supervise your investment property on a regular basis.
In contrast with
this, we had created by people with the highest skills in
geo-marketing; it can fluently communicate with local partners, and has a
deep understanding of real estate investment and developments. It only
in markets where it can obtain sufficient critical mass so it can work
most qualified local partners.
What kind of
projects do you
invest in projects that have a relatively short time horizon and like to
our investors' money up quickly, often 12 to 18 months after the initial
investment. Long term capital appreciation and/or rental income are
interesting, but we have found that quick rotation of our investments
delivers higher returns while it limits the exposure of your
enter projects using the combined assets of several of our investors, so
negociate better prices and assure that the projects are followed up
without eating up profits with legal, travel costs etc.
How is the tax
authorities are very happy with foreign investment money flowing in, and
little questions are being asked. As long as the money enters Brasil
an international bank account they do not care how are where the money was
Why should I invest
instead of a local agency?
Local agents are
paid by the sellers, and will often say or promise anything to get the
the commission. Once the sale is closed, they care little or nothing about
depends on a long-standing relationship and repeat business with its
Working only for you, we can be much more objective and rigid in our
And once you have made your investment, we use all our knowhow to make
get all the profits you're expecting - because we know that this is
will make you come back.
investment project for us?
In fact, that's
what we like best. If you tell us your investment criteria - budget,
return, time horizon, risk profile, etc., we can help you find the
investment for you.
Should you be
remarkably peaceful, christian people, and in spite of the huge
between rich and poor they are not a violent people at all. Compare this
South- or Central American countries and the difference is striking.
But obviously, in
some of its multi-million mega-cities, there is violence in some areas of
where fights between gangs and police are taking place. And petty crime is
common in the top tourist spots like Copacabana in Rio, where the
night-life, drunk tourists and prostitutes creates lots of opportunities
However, in most
of the country, especially in the coastal villages and resorts, there is no
violence or danger to speak of.
Feel free to
contact us !