Brazil Property Buyer ALERT! New Investment Visa + Financing Introduced. Effective Immediately!

Real Estate Investment Visa Introduced

BRAZIL

The situation

The Ministry of Labor published a Normative Resolution introducing a new real estate investment visa which is effective immediately.

A closer look

Details of the new real estate investment visa are as follows:

• Qualifying real estate investments. In order to qualify for the visa, real estate investments must meet the following criteria:

  • The real estate must be in an urban area, must be worth BRL 1 million and can be a fully built property or one that is under construction;

  • If the real estate is located in the north or northeast region of Brazil, the minimum required property value is BRL 700,000 and can be a fully built property or one that is under construction;

  • The value of the real estate investment can be spread across multiple properties in different Brazilian states if the total investment is at least BRL 1 million (or BRL 700,000 in the north or northeast region);

  • Co-ownership is allowed but each applicant must separately meet the minimum investment requirements; and

  • Applicants can obtain bank financing for but only for the amount that exceeds BRL 1 million or BRL 700,00 in the north or northeast region.  
     

• Validity. The real estate investment visa is valid for an initial period of two years and can be renewed indefinitely.
   

• Application process. The application process is the same as other work permit categories which are subject to the analysis and approval of the Ministry of Labor in Brazil; proof of the acquired real estate investment must be presented when filing the application. Foreign nationals already in Brazil are also allowed to apply for the real estate investment visa while they are in-country. All applicants must remain in Brazil for at least 30 days after registering with the Federal Police.
   

Impact on foreign nationals

The real estate investment visa will open a new pathway for foreign nationals to be able to live and work in Brazil and it is intended to increase monetary investments to the country.
 

Background

The Brazilian government has been publishing normative resolutions which expand upon and clarify the November 2017 Migration Law.

Investor visas have been used to increase monetary and real estate investments by foreign nationals in numerous countries, including Turkey, Canada, Bahrain and Ireland.

The Future is Fractional For Brazil's Hotel Sector in 2018 and Beyond

The concept of fractional ownership started off in the US to to commercialize luxury vacation homes whereby a group of clients could divide maintenance costs,taxes,security etc and use the same property for a given time period per year. Overtime this business model was extended to selling condominium apartments,theme park properties and units in beachfront resorts with hotel facilities.

The model is simple and readily applicable to any tourist related real estate development.

For the developer it is much easier to sell fractionally to raise the necessary capital to execute a project ( if off-plan ) or generate funds from fractional sales as an alternative strategy to sell a hotel asset ( if already built ) For the buyer, you acquire equity ownership in a piece of property that you legally own and receive all the benefits of the investment (including potential for appreciation of your asset ) at a fraction of the price.

This real estate segment is primarily touristic driven with demand for resort hotels and vacation homes in the sun. Brazil has an abundance of beautiful locations for such developments and fractional ownership has seen accelerated growth over the past 5 years despite traditional real estate markets suffering heavily throughout Brazil’s recession.

Some Information on Fractional Ownership Projects in Brazil

- 80 projects in 2018 , 54 in 2017 (48% increase) against only 2 in 2013

- 14 states and 39 cities throughout Brazil.

- New developments in 21 cities this year

- 336,000 fractional sales this year with a gross sales volume of R$16.3 Billion 

- 70% of the sales were in the R$20-50,000 price bracket with apartment units comprising  of  86% of the market share.

- A standard apartment will have 2 bedrooms with 50-65m2 and offer distinctive leisure facilities for vacationing.(theme park,golf course,water sports etc)

- Higher end house sales with prices above 90,000 per fraction accounted for 67% of the market share.

- Caldas Novas (the famous spa resort in Goias ) is the leading destination with 20 projects selling fractionally.

- Gramado (in Rio Grande do Sul ) is another trendsetter with 1500 apartments set to be launched in the coming years.

The fractional ownership model for vacation homes in Brazil is on the rise. The  benefits are undoubted for both developers/hotel owners and second home buyers. 

It is a force to be reckoned with and foreign hotel investors should take note of the huge potential opportunities to acquire prime land/hotel assets and launch into the fractional orbit.

Mike is a Hotel Broker in North-East Brazil with a large portfolio of resort hotels for sale in Brazil. https://www.brazilbeachhouse.com/hotels-1

Please contact him if you have any queries about hotel investment and / or fractional ownership sales in Brazil.

Resources for this article ;

http://adit.com.br/wp-content/uploads/2018/07/Cenario_do_Desenvolvimento_de_Multipropriedades_no_Brasil_2018.pdf

http://www.revistahoteis.com.br/multipropriedade-modelo-de-investimento-que-alavanca-a-hotelaria-nacional/

http://newtimeadmkt.com.br/

Buying a Property in Brazil From Dubai in 2018..How was it for Riccardo ?

Mr and Mrs Riccardo Karamat 

British National Living in Dubai

Managing Director of Retail Company

Riccardo talks about his experience of buying a beach house in Brazil this year.

We were thinking about buying a property in Brazil for a while before plunging in.Finally we bought a beautiful beach front house in Natal / Brazil with Mike Smith at Brazil Beach House earlier this year.

We were not able to travel to Brazil to view the property and close the sale so we had to rely on Mike to carry out the entire transaction on our behalf even though we had never met him before. 

He negotiated an excellent price for us. He helped us with all our questions and queries and we gave him a power of attorney to sign the title deeds for us. 

Mike has also helped with arranging surveys,photographers,cleaning and paying the utility bills to tide us over until we are able to make it over to Brazil.

We would definitely recommend Mike Smith at Brazil Beach House as a foreign investor in Brazil and would not hesitate to use his services for any future Brazilian property investments.

Marta & Nils Testimonial for Mike Smith at Brazil Beach House; 01/11/18

Marta ( a retired nurse ) & Nils ( a retired professor ) are from Norway and owned a lovely beach house in Genipabu,Brazil for 16 years.They spent several months at the house every year without fail and reluctantly decided to sell the property this year due to health reasons. Here is what they said about their experience of selling a property in Brazil;

We sold our beach house in Genipabu, Rio Grande do Norte, this year (2018). We achieved a good price and received the amount as agreed.  Before knowing Mike, recommended by our friends, we were in contact with other brokers. What they offered and did to us, was far from satisfying. The selling of our property long distance turned out to be rather complicated (reorganization at the register office, documentation requirements for the non-Brazilian buyer). Mike had to overcome a few obstacles, and he did it, with patience and courtesy, to our full satisfaction. We can certainly recommend him as a real estate broker in Brazil .  Marta and Nils Sorbo, Norway

Brazil Beach House Director, Mike Smith @ Hotel For Sale in North-East Brazil.

Director of Brazil Beach House, Mike Smith, takes a profile shot at a beautiful beachfront hotel resort for sale in Rio Do Fogo, RN in North-East Brazil. Mike loves visiting exotic locations and viewing beautiful beach properties in Brazil. Here is this hotel listing;

https://www.brazilbeachhouse.com/hotels-1/beachfront-resort-hotel-with-60000m2-in-rn-major-potential-for-expansion

Bolsonaro; New Brazilian President on Sunday..why we need change in Brazil!

As a long term foreign resident of Brazil I see the country misrepresented abroad so often. Negative coverage has been amplified in recent weeks due to the epic battle for Brazils political and economic future played out in the presidential elections as the right wing misogynistic Donald Trump(aka Jair Bolsonaro ) goes head to head with the soft bellied corrupt communist Hugo Chavez (aka Fernando Haddad) It has been a war of simplified soundbites,a tirade of accusations on both sides and tempers are frayed..thank god it will all be over on sunday!

The country is now crying out for change and that is why this outspoken,controversial,hard-line candidate is due to receive an overwhelming mandate on sunday. The western media ( in particular ) has taken aim at Bolsonaro’s right wing credentials by highlighting some of his more extreme and certainly outrageous comments regarding women,race and his bent towards military dictatorship..he is certainly not dis-similar to Mr Trump in this regard and he seems to revel in provoking and shocking for effect. However in many other respects he is a far cry from Donald Trump with a military background, untainted by scandal and with very clear concise viewpoints (he is able to put a few coherent sentences together for a start! )

A quick backdrop on the past 16 years of socialist government.

The socialist government of Lula started off with 8 years of economic growth and implemented wide social reforms to alleviate poverty, subsidizing the construction of millions of new homes for poor families and providing financial incentives to send poor kids to school, all highly praiseworthy… unfortunately the latter half of the 16 year reign has deteriorated into endemic corruption,inefficiency and mismanagement of the economy.

Brazil has had and is now currently facing…

-16 years of socialist government..5 years of recession,high unemployment and stagnation

-Huge corruption scandals implicating a large number of politicians in government

-Political uncertainty and lack of confidence in the interim government over the past 2 years

-Widespread insecurity and fear among Brazilians relating to crime on the streets

Where is the change coming ? What Bolsonaro has pledged in no uncertain terms

and what this Brazilian election comes down to in a nutshell..

Economy - revitalize through the private sector, incentivizing companies and cutting red tape

Corruption - take a hardline and clamp down on corrupt practices within the political system.

Crime - get tough on criminals to make the streets safer - give resources to the police.

If Bolsonaro can follow-through and deliver on these very clear pledges then Brazil will return to prosperous and safer times.

Mike Smith..British national living in Natal,North-East Brazil for the past 13 years.

Sao Miguel Do Gostoso /RN..Top 5 Luxury Beach Homes For Sale in October 2018

Sao Miguel do Gostoso is a small paradisiacal beach resort near Natal (the capital of Rio Grande do Norte state). The city has huge tourist potential, with a growing number of Europeans and Brazilians visiting every year. It is one of the top kite-surfing destinations in the world and has attracted an eclectic mix of cool bistro´s,hotels and beach bars. 

This charming beach town is undergoing a transformation as more and more Brazilians and Expats are drawn to the resort to begin a new more relaxed way of life.

With over 40 small hotels and a great selection of small restaurants and bars,the town is thriving and squarely on the map for further expansion of international tourism.This is a fantastic place to spend some months of the year,retire,set up a business or invest in real estate.

Brazil Beach House has selected these Top 5 luxury Beach Homes For Sale in Sao Miguel do Gostoso, each with distinct style,location,character and quality...

1. Spectacular BeachFront Compound in Sao Miguel Do Gostoso R$3.5Million

https://www.brazilbeachhouse.com/luxury-villas-1/spectacular-beachfront-compound-in-sao-miguel-do-gostoso-950k-euros

2. Delightful Beachfront Villa For Sale in Sao Miguel do Gostoso R$1.7million

https://www.brazilbeachhouse.com/luxury-villas-1/delightful-beachfront-villa-for-sale-in-sao-miguel-do-gostoso-r175million

3. Marvellous Private Resort in Sao Miguel Do Gostoso R$1.5million

https://www.brazilbeachhouse.com/luxury-villas-1/marvellous-private-resort-in-sao-miguel-do-gostoso-r2million

4.Sao Miguel Do Gostoso; Lakeside & Oceanfront Home For Sale with Sensational Deck Views; R$ 1.8 million

https://www.brazilbeachhouse.com/luxury-villas-1/lakeside-oceanfront-home-in-sao-miguel-do-gostoso-with-4500-m2-land-area-and-sensationalunobstructed-deck-views-r-2-million

5. Tropical 5 Bed Beachfront Villa for sale in Sao Miguel do Gostoso R$1.75million

https://www.brazilbeachhouse.com/luxury-villas-1/tropical-5-bed-beachfront-villa-for-sale-in-sao-miguel-do-gostoso-r175million

These are the top 5 luxury homes for sale in Sao Miguel do Gostoso right now. Please contact me for any additional information on the properties featured or if you have any other requirements to invest in brazilian real estate.

Financial Times Article Features Brazil Beach House Luxury Listing in Florianopolis

Brazil’s home buyers bet on the ballot Presidential election could see the economy — and therefore house prices — go either way

Hugo Cox OCTOBER 19, 2018

Being a homeowner in Brazil is hard work. Although mortgage interest rates have been slowly coming down since last July — when the average rate peaked at 11.3 per cent, according to the Bank of Brazil — rates are still high. In August this year, the average rate was about 8 per cent, with deposits of 20 per cent usually being required to secure the purchase.

The country’s economy is struggling to emerge from two years of recession and a contraction of nearly 8 per cent. Despite five successive quarters of growth, the recovery remains anaemic — latest figures for the second quarter show only a 0.2 per cent gain. Brazil’s consumer credit rates — which are among the highest in the world, according to Marcos Casaran, head of Latin America for Oxford Economics in Mexico — are helping to depress consumer confidence.

With central bank interest rates at 6.5 per cent in August, the average borrowing rate on household debt was 30 per cent, according to the Central Bank of Brazil. The result has been a drop in housing demand, especially from rich buyers pulling back from discretionary second home purchases, says Andreas Hahn of Real Estate Brazil, an agent in São Paulo.

In the past five years, house prices have gained just 1.7 per cent, according to Oxford Economics. Taking into account Brazil’s inflation over the period, the real price change is a fall of 15.3 per cent. Map of Brazil Brazilian homeowners are hoping a new president — whom Brazilians will select from two candidates on October 28 — will help turn this around. If the winner can deliver much-needed political and economic stability, it is hoped that banks will again embrace consumer credit — including offering more competitive mortgage deals. “According to this argument, credit will then start flowing again, bringing Brazilian buyers back to the real estate market,” says Casaran.

It’s not just Brazilians who are on tenterhooks for the election result. Local estate agents describe two very different bets taken by foreign buyers on the direction of Brazil’s top-end property market. The first group are staying on the sidelines until Brazil’s economic prospects become clear. Five-bedroom house in Florianópolis, R$7.8m

“Nearly all my high net worth investors are sitting on the fence until the elections are complete and we have a definite outcome. This year has been a bit of a write-off for luxury home buyers but I expect the market to pick up once Bolsonaro is elected,” says Mike Smith who runs local agent Brazil Beach House in Natal.

The bookies’ favourite is far-right candidate Jair Bolsonaro, who won 46 per cent of the vote in the first round of the presidential election on October 7, ahead of Fernando Haddad, from the leftwing Workers’ party. Haddad, who won nearly 29 per cent of the vote and who will face Bolsonaro in the run-off on October 28, replaced former president Luiz Inácio da Silva as his party’s candidate when Brazil’s electoral court ruled that da Silva could not run for the presidency from jail, where he is serving a sentence for corruption.

Bolsonaro has long expressed offensive views on women, the LGBTQ community (he once said he would rather have a son die than be gay), as well as frequent racism against Brazil’s black and mixed-race communities. However, he is favoured by investors, who believe that his proposals to privatise state-run enterprises and increase the independence of Brazil’s central bank will provide the country with much-needed economic stability.

The problem with the wait-and-see strategy for overseas homebuyers is that they risk missing out on bargain prices. A combination of Brazil’s uncertain economy and the corruption scandal that has engulfed many of the country’s senior politicians — including former president Dilma Rousseff, who was impeached in 2016 — has taken its toll on Brazil’s currency.

The Brazilian real fell 29 per cent against the dollar in the 12 months to the middle of September. For bold foreign buyers, this has created huge discounts, which will narrow if Brazil’s economic recovery firms up and the real strengthens. Hahn says a higher number of his foreign clients have bought homes this year, taking advantage of the savings provided by Brazil’s weakening currency. “This year, the number of sales to this group increased by half on the same period in 2017,” he says, adding that buyers from abroad now make up two out of three sales.

Most of Hahn’s clients are Swiss, French or German; many have established businesses in Brazil in the last year — typically in agriculture or tourism — betting on the country’s recovery.

Much of the overseas money is invested in coastal villas or in prime properties in Rio de Janeiro and São Paulo. In the Jardins area of São Paulo — a district popular with international buyers and Brazil’s business elite — Christie’s International Real Estate is selling a three-bedroom apartment for R$4.9m ($1.35m).

In Bertioga, a seaside town in the wider São Paulo state, Sotheby’s International Realty is selling a six-bedroom penthouse for R$18m. Outside Brazil’s major cities, Hahn points to the island city of Florianópolis — the capital of Santa Catarina, a state in Brazil’s south — and its surrounding neighbourhoods. For those attracted to the city buzz, apartments in the southerly neighbourhood of Abraão, just over the bridge on the mainland, are popular.

Hahn says that the current fashion is for landscaped apartment complexes, which include gardens and swimming pools. In the nearby central district of Florianopolis, local agent Daniel Ferreira is selling a four-bedroom penthouse with a sea view for R$2.15m. When it comes to holiday homes, much of the hottest property is in the beachside neighbourhood of Jurerê Internacional, roughly 20 minutes’ drive from the city on the north of the island. Here minted expats as well as the great and good from Brazil stretch out in top-end villas — often in gated communities — as well as apartments near the beach. Nightly Ibiza-style DJ bars blend the creature comforts of the champagne set with Brazil’s carnival tradition.

Imoveis de Luxo & Cia is selling a five-bedroom villa in Jurerê Internacional for R$9m. Brazil Beach House is selling a five-bedroom house with a pool in the same neighbourhood for R$7.8m.

Well-heeled Europeans are not the only ones believing in a Brazilian housing market recovery. Casaran says that several US private equity funds have invested in commercial and residential property over the past year, betting that Brazil’s recovering economy and a favourable election outcome will see lower mortgage rates kick-start domestic demand.

Both groups of buyers are taking a punt that the new president can keep the faltering economic recovery on track. That is a big gamble. US interest rate rises and Donald Trump’s trade wars have caused chaos in emerging markets this year. In the four weeks to June 18, Brazil’s flagship Bovespa equity index lost nearly a fifth of its value (it has since recovered some of the losses).

Even with their favoured election result, investors could yet take flight, in which case the value of those smart villas in Jurerê Internacional could have much further to fall. Three-bedroom apartment in Jardins area of São Paulo, R$ 4.9m Buying guide The quickest flights connect New York with Hercilio Luz International Airport, 10km from downtown Florianopolis, via São Paulo, in roughly 13 hours

Adjusting for inflation, average Brazilian house prices dropped 4 per cent in the first half of 2018, according to Oxford Economics Sales taxes in Brazil are typically around 2 per cent What you can buy for . . . $500,000 A four-bedroom apartment with overlooking the ocean in Florianopolis $3m A five-bedroom villa on the Santa Catarina coast $8.5m A grand, five-bedroom penthouse in one of the most exclusive high-rises in São Paulo

5 Profitable BeachFront Hotels For Sale in North-East Brazil in July 2018

If you are looking for idylic palm fringed tropical beaches,exotic vibrant Brazilian culture,great touristic infrastructure,all year round sunshine and high occupancy rates, the North-East of Brazil is THE place for hotel investment.

The Brazilian currency has dropped 20% in value this year therefore providing a unique opportunity to enter the market and capitalize on one of these excellent hotel investment options.

Current Exchange rates;

USD; R$ 3.93 / Euro; R$ 4.6 Pound; R$5.22

Brazil Beach House has built up a fantastic portfolio of both large and small hotel offers on the best beaches of the North-East including Porto Seguro, Trancoso, Praia do Forte, Itacimirim, Ilheus,Morro de Sao Paulo,Pipa,Maragogi and Flexeiras. Here are 5 of the best small beach hotels for sale in Brazil right now with respective links.

1) HOTEL NUMBER ONE; ;  STUNNING BEACHFRONT HOTEL IN ITACIMIRIM,BAHIA; R$ 8 million  ( 13% ROI )

https://www.brazilbeachhouse.com/hotels-1/23-apart-beachfront-hotel-restaurant-in-itacimirim-bahia-r-8000000

2) HOTEL NUMBER TWO; LUXURY BEACHFRONT HOTEL COMPLEX FOR SALE IN TRANCOSO; $7.5 MILLION USD  (12% ROI)

https://www.brazilbeachhouse.com/hotels-1/luxury-beachfront-hotel-complex-for-sale-in-trancoso-75million

3) HOTEL NUMBER THREE; BEACHFRONT HOTEL ON BRAZIL´S CARIBBEAN COAST  MARAGOGI /ALAGOAS R$4.5 Milllion   (15% ROI) 

https://www.brazilbeachhouse.com/hotels-1/beachfront-boutique-hotel-with-award-winning-restaurant-in-the-brazilain-bahamas-15-roi-r45m

4) HOTEL NUMBER FOUR; ; MAGNIFICENT BOUTIQUE HOTEL IN TROPICAL PARADISE/BAHIA; R$4.5 Million  (14% ROI)

https://www.brazilbeachhouse.com/hotels-1/magnificent-small-boutique-hotel-in-tropical-paradisebahia-r4000000

5) HOTEL NUMBER FIVE;DAZZLING BEACHFRONT HOTEL IN CEARA; R$12 million  (10% ROI)

https://www.brazilbeachhouse.com/hotels-1/dazzling-beach-front-boutique-hotel-in-north-ceara-r12-million

 

All 5 of these Brazilian beach hotels provide amazing oceanfront settings with close proximity to airports and are on the map nationally and internationally with a high volume of tourists all year round.All 5 have high occupancy rates,are generating profits and are well established in their respective markets.

I have a wide selection of hotels for sale in Brazil to suit all investment requirements so please contact me for more information.

Brazilian Riverside Eco-Resort For Sale in Manaus/Amazonas- 611 Rooms

This Hotel in Manaus is a luxurious ecological resort, located at the entrance of the majestic Amazon Forest on the banks of the Rio Negro.

The resort offers state-of-the-art technology and luxurious accommodations, as well as its setting in the heart of the Amazon jungle. Enjoy the exotic with all the comfort of the hotel which offers its guest an amazing and unforgettable experience, in direct contact with nature.

LOCATION 

 Located  in the heart of the Amazon Forest, on the banks of the Rio Negro, in northern Brazil, just 10 km from the Airport and 16kms from downtown Manaus.

The complex has several activities for fun from a wide space for hiking, to monitored visits to the zoo - with 22 species of live animals.

The hotel includes the Tucano, the Water Bar and the Lobby Bar for quick lunches or family gatherings, offering Brazilian delicacies and international specialties. And, first-class services and accommodations in the country.

The Convention Center, with 3,222 square meters, 15 elegant lounges and meeting rooms accommodating up to 1,200 participants. Imagine your next corporate presentation at a versatile venue with a delicious banquet waiting in the heart of the Amazon Rainforest.

 Comfortable accommodations on your vacation in the Amazon, surrounded by a fantastic setting at the Eco-resort. The accommodations have a first class standard among the resorts in Brazil. Guests at can choose from 611 spacious accommodations, including five suite types. 

  Additional facilities and services at the Hotel include: Shopping Center

• • Travel agency (outsourced) Two restaurants
• • Room service 24 hours
• • Three bars
• • Cyber café
• • Free Wi-Fi
• • Conference room (s)
• • Fitness Room
• • Recreation spaces
• • Seaplane rides
• • Exclusive Pier
• • Free parking for guests
•  

The Hotel offers the best holiday destination in the Amazon, offering guests many options of entertainment, sports and leisure.

Sports gym

Children and adults will enjoy the large sports area of he Ecoresort, with 2,333.62 square meters of internal area.

This steel structure is located near the entrance of the hotel. Guests at the Ecoresort can enjoy sporting activities such as football, volleyball and handball.

Tennis Courts

Enjoy the five tennis courts arranged around the main square, with snack bars on the sides.

The total area of he tennis courts is 3.778,00 square meters 2. Private lessons available for an additional fee.

Volleyball and Basketball

The volleyball and basketball courts have 162.00 m2 and are close to the tennis courts.

Cooper track

In sand, with wooded area. Take advantage of the varied terrain around the hotel in the 1,400-meter hike around the hotel. Signed every 100 meters, the trail takes you to the banks of the Rio Negro. Enjoy the environment on your vacation in the Amazon with a relaxing stroll and a beautiful landscape.

Zoo

The Zôo occupies part of the green area of he hotel, about 20,000 m2 and was inaugurated in 1976 with the initial objective of exposing some of the representatives of the Amazonian fauna. Today, the objective surpasses the exhibition of animals for entertainment of the visiting public, being also focused on the "ex situ" Conservation (outside the natural habitat) and Environmental Education. The Zoo is registered * with the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA), fulfilling all the legal norms required, including all their animals donated by the same, resulting from seizures and other enforcement actions. O Z

Summary Of Offer

Hotel Area: 66.000 m2

611 Rooms

Annual Occupancy Rate/ 45%

Total Area: 23 hectares

Asking Price: R$ 500 Million

Mike Smith

Phone: 55 84 99993 8936

Mikesmithbrazil@gmail.com