Brazilian Economics

Picture Brazilian exuberance and odds are you are not thinking economics. This, after all, is the land of carnival. But picture this: a country where investment inflows are running at record levels, where exports of everything from soy to biofuels are surging and where the incomes of rich and poor alike are rising and driving a consumer boom. Not quite as attention-grabbing as a beauty queen wearing just a smile and a feather, granted, but it adds up to a striking conclusion. Brazil, best known for soccer, samba and sensuality, has become a serious economic player. After decades of ruinous boom and bust, South America’s giant appears to have entered a new phase of sustainable expansion that could finally unlock the country’s vast potential. “Brazil is in a very positive moment, though we still have many things to do,” says Fernando Henrique Cardoso, the former president widely credited with turning things around. If the country stays on track Cardoso thinks it could emulate Spain’s belated, impressive development. The figures range from good to spectacular: 1.4m jobs created each year; over $100bn in foreign exchange reserves (which exceed the external debt and make Brazil an international creditor); 4.7% inflation, which is tame by Brazilian standards; 4% economic growth, a slight closing of the gap with China. Oh, and last year the stock market zoomed up 60%. “The exuberance we are experiencing is rational in the sense that the fundamentals are solid,” says Henrique de Campos Meirelles, president of the central bank. “There is good reason for optimism. This is balanced growth. Brazil today is much less vulnerable than in the past.” Brazil’s expected investment-grade rating later this year will be a symbolic benchmark, he says. Analysts agree that strong domestic demand, financial stability and exports that are well spread internationally offer some protection from the US slowdown. When the developed world gets flu, Brazil no longer gets pneumonia. As well as footballers and samba it is exporting cars and planes, notably the executive jets and passenger liners of Embraer. Indian and Chinese demand for its commodities continues unabated, while sugarcane-based ethanol production is leaping off the charts. There is a dark side to this growth. Environmentalists voice alarm that soy and cane crops are pushing cattle north into the Amazon and accelerating deforestation. Workers’ conditions on some cane plantations have been compared to slavery. Growth has also created horrendous infrastructure bottlenecks. Sao Paulo’s traffic jams worsen every month, ports cannot keep pace with tanker volumes and air travel regularly descends into chaos. The teething pains, say policymakers, of a maturing country. Difficult adjustments launched in the mid-1990s have been consolidated under President Luiz Inácio Lula da Silva, giving the government leeway to expand ambitious anti-poverty drives. Brazil is enjoying high employment, low inflation and steady economic growth. But that comes with vast social and environmental problems. Rory Carroll reports

Fortaleza Real Estate – Properties in and around Fortaleza, Brazil

Buying property in Brazil

Here are some general questions and answers about buying property in Brazil.

Can foreign overseas investors buy and own property in Brazil?

Yes, there are no major restrictions for overseas buyers or foreign investors wishing to buy into Brazilian property. The Brazilian Government encourages overseas investment, and offers the benefit of a foreign overseas purchaser being able to own property in Brazil 100% freehold.

How an offer is generally made when I want to buy into the Brazil property market?

When you have decided upon a property that you wish to buy in Brazil a verbal offer will need to be made through the agent and often some negotiations will follow. At this stage a lawyer should be appointed by you to formalize your final price agreement and to oversee purchase proceedings, including deposit or reservation payments. With off-plan purchases, the price is however, often fixed and dependent upon the current phase of construction.

The buying procedure in Brazil may vary slightly according to which developer you are buying property from in Brazil, so when buying on a new or off-plan development as an example, you will need to establish the specific procedures and financial arrangements relating to the property development in question.

How does the property registration system work in Brazil?

The property registry system in Brazil is well developed and safe. The registration itself is carried out by private notary publics. All property is registered at one single registry, which records details of the entire commercial history and the physical identification of each property. It is obviously very important to ensure that any property you buy in Brazil has a clear title. Access to registry information is available to the public and includes relevant details on ownership, mortgages and other pending debts. In the larger cities, these services may be automated.

What is a CPF number and how can I apply for it?

You will need a CPF number in order to buy property. To get a CPF number (Cadastro de Pessoas Fisicas): a) you can apply in your home country by supplying your birth certificate translated into Portuguese by a certified translator and legalized by the Brazilian Consulate in your home country. This will then need to be taken to the Banco Do Brasil with your passport and birth certificate in order to formally apply for a CPF. A small fee is payable and the following day you will receive your assigned CPF number at the Receita Federal, or b) Alternatively, if you are visiting Brazil to buy property, it can be much easier to apply for your CPF when you are here, although we recommend that you bring your birth certificate with you and marriage certificate if this applies. Your CPF number can then be obtained during your visit. When buying a property through Fortaleza Real Estate we help you organizing this free of charge.

What are the associated costs with my property purchase in Brazil?

Transaction costs, including stamp duty (registration fee), fees etc. can average at between 3% and 8% of the purchase price. These costs may differ according to location, type of property and the State you buy in. If it takes a significant amount of work to establish title and ownership, the costs could amount to more.
Breakdown:

• A down-payment for your chosen property of usually about 10% of the purchase price is requested.
• Property transfer/registration fees average about 5% of the purchase price, but this can vary depending on the type of property that you buy, and also the state in which you buy.
• Payment can often be made all at once or in installments of 12, 24, 36, 48, or even up to 84 months when buying off plan or a building in construction, but interest rates are very high, and generally not fixed via constructer finance in Brazil. If you opt to pay in installments, bear in mind there is also a currency risk: if the value of the Brazilian Real goes down, your property becomes cheaper, and vice versa.
• Payment for private purchases is often made all at once, although short-term payment agreements of up to 3 months can be made.
• 1% import tax on the transfer of funds from abroad.

As an overseas investor, how do I send the money abroad when buying my property in Brazil?

When you have decided to buy your property in Brazil, and assuming you are sending money from overseas, funds are sent directly from your own bank account to the seller’s bank account in Brazil, via the Central Bank of Brazil (Banco do Brasil). The bank records your funds entering into the country and in order to release the funds, the seller must present the sale and purchase contract to the bank. We strongly recommend you use only this official route, or you may have problems transferring funds out of Brazil when you sell your property in the future. There are generally no limitations in returning funds from Brazil provided they were originally registered with the Central Bank of Brazil at the time of purchase.

Is there any risk associated with my property purchase when I make an investment in Brazil?

Yes, that is why it is strongly recommended that you always use a registered CRECI property agent in Brazil, and that you are buying a property that has been thoroughly checked out by a qualified Lawyer, then, your property purchase should run very smoothly.

What is the meaning of buying off plan?

Buying “off plan” means purchasing an overseas property at the planning stage before it is actually built. When you buy “off plan” it can be an exciting process that will normally deliver good returns on your overseas investment because you have fixed the price at an early stage, and bought property in a desired established location. Certain off plan developments in Brazil will also enable the buyer to have a say on the final outcome of the property, whether that be for general finish of the property or in fact a totally different internal design just as a few examples.

What are the benefits to buy off plan in Brazil?

Property sold “off plan” is generally bought for a substantially lower price when comparing to the price on completion of the build. This means that buying off plan property in Brazil can potentially deliver an excellent return on investment for overseas buyers. The building process in Brazil of any project generally takes between 24 and 36 months from off plan purchase to completion. The majority of off plan buyers tend to agree that seeing the dream unfold in front of you can be very rewarding from the point of view that you can possibly contribute to the final shape and look of your off plan investment along with having the time to plan ahead, which can be extremely useful when planning to move abroad for your retirement as just one example.

Is there a governing body of control for Brazil real estate agents?

Yes, Brazil’s estate agents are monitored carefully by a governing body known as CRECI, which stands for ‘Conselho Regional de Corretores de Imóveis’. Each qualified agent or business based in Brazil will be registered with CRECI and will be assigned a unique number which is lodged at the companies’ house. As an example, Fortaleza Real Estate is a registered Real Estate Agent in Fortaleza, Ceará with (CRECI – 5653).

Fortaleza Real Estate

 

Dream Village Cumbuco

Dream Village apartments consist of 16 houses that cluster around the central water feature and swimming pool with its bar and barbecue area. There are 46 apartments in the 16 houses, each one with a sea view, even those furthest from the beach.

Decking on the shoreline gives straight onto the beach and more than any other development we have planned, this one will have the intimate atmosphere of a village.

There are four different types of apartment in the development.  All the houses have a duplex apartment on the top two floors.  The two houses nearest the beach are very spacious and have one apartment on the ground floor, with the duplex above.

The other houses have an extra story, so there are apartments on the ground and first floors, as well as a second/third floor duplex.

All apartments have ample terrace areas, the upper duplex apartments particularly having very large balconies.

The development is gated and has 24-hour security.

Car parking is confined to the back of the development, near the road, to keep vehicles away from the pretty landscaped grounds.  The site is dotted with trees and has paths winding around the central water feature. The swimming pool is served by a bar and barbecue area and showers.

Apartments on upper floors are more expensive than those lower down, and apartments in houses near the beach are generally more expensive than those nearer the road.

The apartment we have for sale is Dream Village 501 and selling for € 149.500

Ground floor apartment Nº 501-V.
Gross area (to outside of walls): 85 sq. meters.
of which the balcony area is: 28 sq. meters.
The construction is estimated to finish in December 2008.

The Cumbuco Vila Galé Golf Resort

The executive Jorge Rebelo de Almeida communicated recently that the construction of the Hotel Vila Galé Cumbuco 33 kilometers from Fortaleza has started. The 5 star resort will occupy an area of 10 hectares and the project is expected to count with the installation of luxurious Spa Satsanga already featured in another of Vila Galé hotels the Vila Galé Marés Resort Spa & Conference Hotel.

The project of Vila Galé Cumbuco will also include initially a golf course of 9 holes later to be extended to a full 18 hole golf course on a total of 450 hectares of beautiful coastal land nearby the village of Cumbuco.

Fortaleza Real Estate

New Beachfront property in Fortaleza Brazil Costa Blanca Resort

New Costa Blanca Resort is being launched these days from the same developers constructing the Breezes Cumbuco. Pre-sales has started and apartmens are selling fast. This popular region near the famous Beach Park water amusement park and also close to the Aquiraz Golf Course.

The Costa Blanca Resort consists of 72 apartments in sizes between 107 m2 up to 214 m2.
The complex has 4 elevators, underground parking and is absolute beachfront in Porto das Dunas. The standard apartments of 107 m2 have 3 suites. The top-level 107 m2 apartments have 2 suites, sundeck, barbeque area and Jacuzzi. The top-level 214 m2 apartments have 4 suites, sundeck, barbeque area and Jacuzzi. The indicated price is starting price and based on immediate full payment. A range of prices exist depending on size and location of the apartments. Payment through installments can be arranged.

 

Real Estate in Fortaleza Brazil

We are committed to our clients and when we offer a house, apartment or land.

When listing properties on our web page https://www.fortalezarealestate.com.br  we have direct contact with the owners or developers of new projects. This is very valuable to you as a buyer as many are trying to seek their luck in the real estate business featuring homepages selling properties in countries where they have poor knowledge or none at all. Make sure that you get all the right information from the beginning. We live and act in Fortaleza and can offer you valuable local information – please do not hesitate to contact us

We offer legal assistance through lawyers that speak English and will assist you in getting the proper documents needed to buy property in Brazil. We Fortaleza Real Estate are certified by the Brazilian – Conselho Regional de Corretores de Imoveis CRECI all real estate agencies or brokers have a CRECI number. Our CRECI number is 5653. We live in Fortaleza and know the state and have good contacts with lawyers, construction companies, architects and governmental organs.

Fortaleza Real Estate
CRECI 5653