Heated Debate

A heated debate is taking place on the following forum:

http://www.totallyproperty.com/brazil-property/3121-banana-residential-club-6.html#post10823

People who have visited the Banana Club site have varying opinions as to how desirable it is. They basically range from 'highly desirable' to 'steer well clear'. It is good to hear different peoples views although you have to bear in mind that some posters have hidden agendas, e.g., some of them may be real estate agents with a vested interest in a particular development.

If anyone reading this has visited the Banana Club site please feel free to post your comments.

Thumbs Up For Brazil

Goldman Sachs high flyer Jim O'Neill once again gives the thumbs up to Brazil. Although he concedes that Brazil has not done as well as the other BRIC countries he claims that he is optimistic about Brazil's future and is considering buying a second home there.

He thinks that Standard & Poor will probably upgrade Brazil to full investment grade status in 2008.

Source: Mail on Sunday, 8th July 2007.

Interesting Website

I came across an interesting website called Escape Artist today. Although it is aimed at Americans wishing to emigrate it contains some interesting articles on Brazil such as:

Be wary about stated sizes of property.

Finding reputable real estate agents in Brazil.

An ex-pat documents life in Fortazleza.

Beachfront -v- Lagoonside

I have found a couple of forums which include quite a few posts on buying property in NE Brazil:

Channel Four Forum

Totally Property Forum

One of the posts, made by a real estate agent, pointed out that Banana Club is relatively cheap because it is not beach-front. I think that, while beach-front properties are highly desirable to some people, the beach is not everyone's cup of tea. Perhaps people with children would prefer the relative safety of a lagoon. Or maybe those sampling water sports for the first time would prefer a calm lagoon rather than the rough sea to practice in? When purchasing any property there is always a trade-off. Beach-front and get a one bed apartment for your £50k or lagoonside and get a three bed villa for your £50k?

Will a beachfront property achieve better rental yields? Will beachfront result in higher capital appreciation? Only time will tell.

Delay

I was telephoned yesterday by Carola at Property Showrooms who informs me that there will be a delay in the initial contract, apparently because some title insurance is being arranged over each individual plot. I know there are firms in the UK which provide insurance policies for clean commercial titles so perhaps this is similar. In any event, it means that I do not have to part with my 21,500 euro quite as soon as expected so I am not unduly perturbed!

The Plunge

There is not much more I can do to minimise my risk so I choose plot 21 in phase 3 and fax through the relevant forms with a copy of my passport to Nicky. Again, she provides an excellent level of customer service by confirming that all the paperwork has been received and is correct. I pay my 1,000 euro by credit card to Legalex, a firm of Spanish lawyers. I very quickly receive some information through from Manzanares lawyers in Spain, who have an office in Brazil. I know it is probably good practice to try and hunt down my own independent English speaking Brazilian lawyer but my workload in my day job means that my time is limited. I take the easy option and instruct Manzares to act on my behalf. Their fee will be 1,500 euros plus VAT for the whole process. There will also be disbursements on top of this for:

1) Notary and registry fees

2) Transfer tax on completion.

3) Search costs.

4) Bank commissions.

According to my email from Manzanares there are a number of steps that they handle in the property purchase:

1) Reservation of the property, which I have already done.

2) Legal searches, similar to those in the UK.

3) Application for a tax number after granting power of attorney to Manzanareas.

4) Check that building works are on schedule before stage payments are made.

5) Completion.

6) Registration of the property in my name.

7) Setting up of direct debits for utility bills.

Links Policy

I think I had better explain my links policy at this juncture. Wherever I can, I am linking to other websites that you might find useful. Some of these websites run affiliate programmes and I make anything from a few pence to a few pounds if you click through and make a booking or a purchase. I am, however, only linking to sites from which I have received good service. For example, I enjoyed my stay at the Sofitel in Salvador and thought it was good value for money. I am linking to them and I will receive a small percentage of any click-through bookings. I am also linking to a small pousada in Maracajau because I enjoyed my stay there but I receive nothing from them, so I don't make money on all the links. I am not linking to sites where I did not receive good service or which I do not consider to be good value for money. I am not receiving any money from Property Showrooms. I am linking to them because they have provided a good service, so far. Neither am I receiving any money or inducements from the developer of the Banana Club or the developer of Porto Dos Corais.

I will do my best to tell things 'as they are'. If you think I have got anything wrong or have been unfair in any way please feel free to post.