Real Estate

Buying Property Abroad: Brazil

Story Published on October 3, 2008 ⋅  Email this Story ⋅  Print this Story ⋅ Post a comment ⋅

On a recent trip to Brazil I came across an interesting way to obtain a Brazil mortgage, this is for non residents actually a 100% off plan Finance model.

This is a Totaly new way of buying property abroad I cant find a system like this in any other country, it means no large depsoits needed.

I was looking to invest in Brazil property but did not want to make a huge down payment of around 40% so I bought a ticket and flew to Fortaleza and hooked up with some local brokers

The local agent introduced to me a payment plan that alows me to pay the 30% over 2-3 years as they build the property, this is a much better way to gear your saving to buy in Brazil

The fees to set this up was $2000 and this was for the whole package CPF number leagal fees and the brokers fee, My monthlu payments are $1200.

When the builder hands over the property I will have paid 30% but I can then use the apartment or rent it out I have the option to pay the ballance in up to 16 years if need be

I will be able to use the apartment or put a rental tenant or vacation renter into the property; this will give me an Income and pay off the balance.

My particular formula is to look at Location Location Location and if it will rent out,if so then the deal flys for me,

I settled on Fortaleza as my city in Brazil as regular flights from Europe TAP have 66 flights a week arriving from Portugal, In December Delta will fly direct from Atlanta.

Golf courses in North East Brazil are under construction the first part of an 18 hole course will open in December 08

In the same location they are building a shopping centre and eight five star hotels right on the beach it is well underway

Fortaleza should be one of the Host cities for the 214 world cup one of the FIFA requirements is a metro train link for public transport or Tube this will be one of only a few in Brazil,

When buying investment property in Emerging markets one should think of why you are buying. Is it for a holiday home or to make money or both, you only making your money when you sell?

I chose brazil to buy as the market internaly is very good they predict that because of the local credit market being so good prices will grow by 20% this year and carry on for 10 years more

to speak to the 100% finance brokers contact www.brazillandconsult.com

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