Brazil Real Estate
Hundreds of miles of dazzling, white-sand beaches surround the city of Fortaleza in the northeast of Brazil. Its clear, tropical ocean waters maintain a year-round temperature of 80˚ Fahrenheit. Serving as the glimmering centerpiece for the state of Ceará, this capital city of almost 3 million people is now the No. 1 tourist destination in Brazil. Fortaleza boasts its own beautiful in-city beaches, sizzling nightlife, and great restaurants.
Yet you can still buy a downtown apartment with a sea view for $110,000 and lots (just off the beach) outside the city are for sale for as little as $46,000. Fortaleza is popular with European travelers, expats, and investors, but completely off the radar screen of North Americans…for now.
The world market seldom sees price distortions like the properties on the beaches around Fortaleza today. This market will move upward once the U.S. buyer arrives. But for now, you can still get great deals.
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Way before I ever make a recommendation for a foreign real estate buy, I know exactly what the market is doing—and how certain real estate trends are likely to play out. Identifying and understanding market trends is key to smart real estate investment overseas. It’s the difference between buying a nice and low-priced property that will stay at the same price point for years to come…and buying a property that’s set to rise quickly in value over the coming years.
I ﬁrst visited Northeast Brazil in April 2008…speciﬁcally the beach town of Cumbuco. I made a bold prediction about this sleepy little spot… I predicted that it was set to embark on a big, upward trajectory. It did, and for folks who got in then, it’s proved proﬁtable. Now a special situation has created another buying moment here, right in the middle of Northeast Brazil’s great growth route.
The news out of Brazil is bad. Really bad. I’m excited. I’m excited because, while the media’s stories imply that the whole nation is a mess, I know that’s not the case. But most people don’t know that. And for you that opens a window of opportunity. You see, Brazil’s media is centered in, and dominated by, Rio and São Paolo. What reaches us as “Brazil news” is essentially just Rio/São Paolo news. And yes, there are troubles in Brazil’s economy, no question. But I’ve been focusing my attention south of Fortaleza in the northeast, and I’ve come across some great opportunities.
A new era of relative peace has allowed Colombia to prosper. In the past decade, annual GDP growth has typically been in the 4% to 6% range. In U.S. dollar terms, Colombian stocks have tanked. The local currency, the Colombian peso, has fallen hard against the U.S. dollar. The reason? Collapsing price of oil. Brent crude oil is down 50% since June 2014.
Imagine a place of rich, earthy smells, dappled light, soaring tropical hardwoods, and thick underbrush…the dawn calls of birds and the nighttime chirps and whistles of insects. From your terrace it’s as though you have Eden on the doorstep—a thousand shades of green and nature’s bounty. These days, living in a jungle home, you can have the best of both worlds: the feeling of being set apart, while enjoying conveniences like high-speed internet and air conditioning in your own paradise.
This is the nicest raw beachfront lot I’ve stepped onto in a long time. Warm breezes clear the scant, broken clouds, opening up a big blue sky. The sea is blue turning turquoise as gentle waves roll in. It’s a picture-perfect vista and setting. The beach stretches as far as the eye can see. Sandy points frame the horizon in both directions. In the distance giant dunes dominate the landscape. This beachfront lot is like a little oasis. Wild-growing palm trees sway. Colorful flowers crawl up walls and sprout from hedgerows.
This valley reminds me of the Blue Ridge Mountains of North Carolina. Here, as there, ancient rolling hills are blanketed in a mix of pines and broadleaves. Then the bus I’m on passes a clutch of palm trees. Okay, not quite North Carolina. The Serra Gaúcha region, in southern Brazil, is practically unknown abroad, but it’s very popular with Brazilians. They flock here to enjoy the temperate, highland climate, so different from much of mostly-tropical Brazil. (Serra, in fact, means “highlands.”)
Right now, you could buy your own piece of property right off the beach in Brazil…in a location where millionaires are putting their vacation homes…and all it will cost you is a few hundred dollars a month. The beaches here are spectacular—brilliant-white sand stretches for miles. Along that long stretch of coastline, multi-million-dollar homes are dotted. Over the past decade this part of Brazil has enjoyed an economic transformation. Very little has happened here—but now we’re seeing an opportunity.
Natchi and her husband own the biggest guesthouse in town and business is booming. Wind energy is a big deal in this part of Brazil. When I stayed in their place—midweek during off-season—the place was packed to the rafters with 45 wind-energy workers. This is Icaraí (pronounced ick-areye), the closest town to the nearby wind farms. But sheltered in lush vegetation and right on the empty beach…this certainly doesn’t feel like a frontier energy town. It’s a tropical paradise.
Do you like the idea of a life at sea…but only in short doses? Sunset cruises, fishing excursions, day trips, and the occasional long weekend jaunts to anchor off a remote island…? The ocean can be your playground.
If you want to increase your future returns while reducing your risk, you should add some emerging-market stocks to your portfolio. It may surprise you that adding riskier, emerging-market assets to a portfolio will reduce overall risk, but it shouldn’t. These markets do not move in lockstep with the U.S. market, which hit a series of all-time highs in the fourth quarter of 2013.
Seated at a small table shaded by a large yellow umbrella, I sip my beer and savor the mid-afternoon sun of early autumn and the gentle but steady sea breeze. I’m surrounded by possibly the most beautiful collection of people that I’ve seen anywhere in my travels. Fit, confident, and stylishly attired, they hustle past to the last meeting of the week or grab one of the remaining available tables. I could be in Florence. Or Milan, perhaps.
“My maid now eats yogurt,” a contact told me on a visit to Fortaleza, Brazil in 2009. It may seem like a strange thing to notice but it’s a sure mark of how Brazil is changing. Yogurt is a premium product in Brazil—and my contact’s maid was changing her consuming patterns in line with Brazil’s new middle class.
At Real Estate Trend Alert my beat is to find places where real estate is undervalued and where something is set to happen that means values will increase. I call this “the trigger event.” This trigger event could be a fast-growing, new, middle class or new infrastructure projects that will bring improved accessibility.
Cariocas, the laid-back residents of sensuous Rio de Janeiro, welcome 1.5-million vacationers a year. But when it’s time for their own vacations, many of them head to the Região dos Lagos, or “Lakes Region,” also known as the Costa do Sul (Southern Coast).
For thousands of years skiing was just a way to travel in winter, carry mail and goods to snowbound towns, or—believe it or not—charge into battle. Then in the mid-19th century the first races took place and before long enthusiastic amateurs had taken up the sport.
For decades Brazil was known as “the country of the future.” Today it has arrived. Brazil is the world’s sixth-biggest economy, having recently overtaken the United Kingdom. Brazil will host the 2014 soccer World Cup and the 2016 summer Olympic Games. It’s the world’s biggest food exporter. And it’s a world leader in renewables and awash with oil.
If you want to make money from real estate, look for places where it’s cheap but about to go up in price. Maybe a new highway is coming, or new air links to an inaccessible but stunning area.
The first opportunity is a perfect bolthole if you’re looking for Caribbean living with a European flavor close to home. Direct and affordable morning flights from the U.S. will get you here in time to soak up early afternoon sunshine on the beach or bathe in the turquoise waters
Brazil’s economy is on the up. Particularly in the Northeast, along miles of white-sand beach. Charming beach towns dot the coast around Fortaleza city. Of these, Cumbuco is my favorite. And you could have recently bagged a lot in Cumbuco, in a gated community just back from the beach, for $30,500.
Fortaleza, with a population of 3 million people and a glimmering boardwalk, is the capital of Brazil’s Northeastern province of Ceara. Thanks to miles and miles of Brazil’s best beaches, this is Brazil’s biggest domestic tourism destination. This area has outgrown the rest of Brazil over the past 15 years. Now government policy calls for the creation of a mega manufacturing and export hub just outside Fortaleza.
What if I could show you how (and where) to buy your dream home on an island like this one, with palm-tree rimmed. white-sand beaches washed clean by clear, warm Caribbean waters… or on a lush jungle cliff-top with a mega-mile view of the blue Pacific stretching out before you…
Brazil is on the up. Fortaleza is doing particularly well. Government policy calls for the creation of a mega manufacturing and export hub just outside Fortaleza. We can profit.
In northeast Brazil, miles of wide and deep white-sand beaches connect little fishing villages and kite surfing outposts. A typical year has 300 days of sunshine. A typical day is in the low 80s with sunshine and refreshing breezes from the ocean. This is where Brazilians and Europeans come to vacation.
This is a stretch of coast you should visit first-hand to see the opportunity I have been telling you about. Today, I’m extending a special invitation
In pockets all across the planet, you’ll ﬁnd amazing opportunities to make money from real estate. I’m talking about beautiful places tucked into lush jungle-clad hills, on white sandy coves, in bustling cities, and in small colonial towns. These are markets on the upswing. The mainstream hasn’t heard of them yet. And in them today you’ll get excellent bang for your buck as well as great proﬁt potential.
Some of the best properties up for grabs in the countries that topped IL’s Global Real Estate Index 2012.
In this Global Real Estate Index, you’ll ﬁnd listed the 27 places in the world today that boast the most attractive, and potentially lucrative, real estate opportunities. Each of these places has something special to recommend it…some attribute you won’t ﬁnd elsewhere. Those that top the list hold the most proﬁt potential right now. Those at mid-table and below are ones to watch.
My boots-on-the-ground research lead me to an anomaly in real estate prices on a narrow stretch of downtown beach in a part of Brazil that’s doing particularly well.
Beach city is buzzing with trade, commerce and progress. It’s beautiful; hundreds of miles of white-sand beach that’s wide and deep.
Today Brazil is a global power broker…the world’s sixth biggest economy…host country for the 2014 soccer world cup and 2016 Olympic Games…the world’s biggest food exporter…a world leader in renewable energy, while also awash with oil…and a strong manufacturer of planes, trains and automobiles.
The best beaches in the world are in Brazil. Ask a Brazilian and he will tell you Brazil’s best beaches are in the northeast, centered on Fortaleza. Miles of wide and deep white-sand beaches connect little fishing villages and kite surfing outposts.
The opportunity in Iracema is strong. In two months, a major and reputable developer will launch a new condo project called Piazza Coliseu on one of the best plots here. The plans and the show apartment are ready. It will likely be the last week of February before he launches. After Carnival is when the real estate market really heats up.
We can get in now pre-release, with special member pricing and terms.
Just because things are sluggish or downright stagnant where you are doesn’t mean it’s like that everywhere. Right now, there’s a one-mile stretch of downtown, beachfront boardwalk that’s buzzing with commerce, progress and activity.
We could profit. I’ll show you how.
West of Fortaleza on Brazil’s northeast coast, wide white-sand beaches stretch to the horizon. You can drive for hours along these beaches. Charming fishing villages with cobbled streets and well-maintained town centers sit just off the sand.
Joao Pessoa, in Brazil’s northeast, is surrounded by miles of beautiful beaches. The weather’s warm and sunny year-round. Roughly 75 miles from Recife and 110 miles from Natal, the city is the third oldest in Brazil.
This is where many Brazilians retire (young), vacation and buy second homes. In particular, the city is popular as a retirement destination for senior civil servants. They retire early from their government jobs. Active and healthy, they relocate here to start the next phase of their life.
That’s good news for the businesses of Joao Pessoa. As more of these wealthy young retirees move here, the city’s businesses have more customers. There’s more demand for services—like dentists and cardiologists and financial planners.
Times are good if you own quality office space here.
When you’re buying a property overseas, it’s good to have help. You want someone who can show you a selection of properties that fit your budget, explain the market’s history, give you price comparisons, and set a fair market value. Someone who will go back and forth with the seller and get you the best possible price. Someone on your side.
Greetings from Quito, Ecuador. In a few moments, I leave for the north coast. This is Ecuador’s nicest stretch of coast. We have the opportunity to buy lots here with monthly payments of $500 or less. Because of the new highway we’ll reach the coast by 9.30 a.m. or so. In time for morning ceviche on the beach.
I’m looking forward to seeing the improvements in the coastal highway that runs south to Canoa since I last visited. I’ll send you my full report soon on the infrastructure developments and improvements at the Jama Campay project.
In fact, while the year is winding down…my travel schedule and deal pipeline is filling up. These are exciting times.
What may surprise you is that when most Brazilians vacation at the beach, they don’t go to Rio. Instead, they head to the state of Ceara on Brazil’s northeast coast. It’s Brazil’s top domestic tourist destination.
I’ve been recommending opportunities in Fortaleza in Brazil for the past three years. I’ll tell you about the current real estate opportunity in a moment. First, some background.
Long-time readers of these dispatches will know that I’m bullish on Fortaleza in Northeast Brazil. It’s now three years since RETA members (me included) first got the opportunity to “buy well” here. I’m happy with the units I have purchased.
The first of our units from those early pre-releases will be delivered early next year. That means we need to start making a plan. We will need to decide whether we want to rent short-term or long-term? What vendors and partners will we choose for fit-out and rental management? These are important decisions. They could have a big impact on the yields we generate. Many of you have been asking about my own plans.
Brazil Real Estate
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Previous to my moving overseas I based on my diving trip in Belize after reading many great things about it in International Living magazine. I loved it here and so dumped everything in the U.S. and moved to Placencia, Belize last September. One of the better decisions in my life.Read More Testimonials