Have Your Own Beachfront Property On Brazil’s Northern Coast
As a real estate investor constantly seeking out property deals in different countries around the world, I pay a lot of attention to the performance of the currency in any market where I’m considering investing in relation to my base currency, the U.S. dollar.
While the performance of a country’s currency is not necessarily a deal breaker, it can transform a good deal into a great deal… if the timing is right and luck is on your side.
I don’t recommend trying to time currency exchange rates when investing in foreign real estate. No one can predict or time exchange rate movements reliably, and you can miss out on great opportunities trying.
However, if you are a U.S. dollar holder presented with an investment opportunity in a particular country that makes sense and the currency of that country moves dramatically in your favor in real time, while you’re paying attention, then you should pull the trigger.
That’s the situation right now in Brazil.
This country has had my attention for some time, specifically, the region along this country’s northeastern coast. As I’ve been watching this market, scouting for opportunities for action, the Brazilian real has been moving in real time in my favor.
As of this writing, the real is trading at 4.02 reals to US$1. That represents an increase in buying power for U.S. dollar holders of 250% since 2011.
In other words, it’s time to pull the trigger here.
I’ve identified an excellent pre-construction investment opportunity along Brazil’s northeastern coast that I believe makes sense from an investment perspective while capitalizing on today’s currency window.
The project is located at Retirinho Beach in the state of Ceara. It’s just 15 minutes away from Canoa Quebrada, one of Brazil’s major tourist destinations, known for its beach resorts, world-class restaurants, and vibrant nightlife.
The developer’s vision is to create an eco-friendly beachfront community that integrates organically with the natural landscape and surrounding areas.
Residents will have direct access to miles of golden sand beaches. In addition, the development will feature a heliport, an onsite convenience store and bakery, walking and running trails, a soccer field, a kid’s playground, and a covered social area for outdoor grilling with panoramic ocean views. Plus, residents will be able to enjoy a beach bar and restaurant along with a beachside cabana specifically for massages.
Moreover, the developer plans a landing area for fishermen’s boats, where local fishermen will be able to sell their daily catches to residents. Essentially, the development will have its own fish market.
The developer has structured the development in three phases expected to be completed within four years.
In Phase I, which consists of 50 prime beachfront lots, the developer is focused on road infrastructure, installing electricity to each lot, and the construction of planned amenities.
The focus in Phase II will be the development of a subdivision of 200 beachfront and ocean-view lots. Phase III will see the construction of an eco-friendly boutique hotel on the beach.
Already, Phase I roads are in place, and electricity is being installed. The beach bar and restaurant are in place and operational. The developer is now ready to release the 50 Phase I beachfront lots for sale.
These lots are big, ranging from 1,750 to 3,500 square meters (18,800 to 37,600 square feet). Each lot has 15 to 25 meters of ocean frontage and sits up on a short bluff overlooking the beach… important in the context of rising seas and coastal erosion.
The best part is the price. These Phase I beachfront lots are being launched and made available to Live and Invest Overseas readers starting at 197,718 Brazilian reals. At today’s exchange rate, that’s just US$49,000. Prices go up to 264,550 reals (US$65,500), depending on lot size.
A prime beachfront lot for less than US$50k is unheard of today. But, thanks to the current strength of the U.S. dollar against the Brazilian real, that’s what’s on the table here.
Not only that, should you choose to build a home on your lot you can take advantage of the reduced labor and materials costs, also thanks to the current exchange rate.
For example, at today’s exchange rates, you could build a 95-square-meter (1,022-square-foot) home with a swimming pool for US$39,000. Or you could build a 140-square-meter (1,500-square-foot) home with a swimming pool for US$60,000.
So, realistically, you could have a beachfront home with a pool in this serviced community for less than US$100,000.
In addition, the developer is offering Live and Invest Overseas readers exclusive financing options. The terms are 25% down with the balance to be paid in 30 monthly installments at 0% interest.
The developer is also offering a 10% discount for buyers wishing to pay cash in full upfront.
I see this as an extraordinary opportunity to have a home of your own right on the beach on one of the most beautiful coastlines in the world… a perfect second home, holiday home, retirement residence, and also rental property.
I would encourage you to act on this unique opportunity sooner rather than later. You can get in touch here for more information.
Lief Simon
Property Taxes In Brazil
“Kathleen, how much would I expect to pay in property taxes on the beachfront property in Brazil?”
–Don M., United States
Overseas Property Alert Editor Lee Harrison responds:
If you own property on the beach in Brazil, you’ll be liable for two property taxes—namely, IPTU and Foro.
To use a real-life example, my house was directly on the beach, with three bedroom suites and 2,033 square feet of living space. My IPTU and Foro totaled about 600 reals, which would be US$150 today. I’m told by agents in the area that the IPTU and Foro rates have gone up some in the last few years, but they are still very low.
What you pay varies depending on the municipality and state, so a buyer, when interested in making a property purchase, needs to ask the agent for details of the previous year’s taxes to be sure what he’ll be liable for.
