The Buying Game
- Buying Real Estate In Brazil
By Robin
Sparks
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| BRAZIL
is the fifth largest country in the world with 4,500 miles of coastline,
the Amazon River, the Atlantic Rainforest, the Panantal Bird Reserve, the
preserved mining towns of Minas Gerais, 4,000-foot mountain peaks, a European-populated
southern coast, South America's largest city and its financial engine -
Sao Paulo, and one of the world's most enchanting cities - Rio de Janeiro.
Add a large dash of friendly Brazilians and a cost of living that is one-fifth
that of the United States and what is there not to like? If you can't find
it in Brazil, you're probably not going to find it anywhere.
But can foreigners
legally purchase property in Brazil? After all, some of the world's most
desirable countries don't allow foreigners to purchase land or houses.
(Thailand and Bali come to mind.) The answer is yes. In Brazil foreigners
have the same legal footing as Brazilians when it comes to buying property. |
| The Quarterly has thus far featured
several articles about Real Estate in Brazil. each of which engendered
a good deal of positive response from readers - Staff writer Robin Sparks
provides us with a new view and some hard facts on the Brazilian Real Estate
market |
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RULES OF
THE GAME
1. You need
a Brazilian ID called a CPF.
2.To get a
CPF you need a birth certificate translated into Portuguese by a certified
translator and legalized by the Brazilian consulate in your home country.
3. You make
a trip to Banco Do Brasil with your passport and your birth certificate
to formally apply for a CPF and pay a small fee.
4. The next
day you go to the Receita Federal to receive your assigned CPF number.
5. Your CPF
card is mailed to an address in Brazil within two months. (That's right,
you need a Brazilian address.)
6. It’s best
to use a trustworthy broker. Not only will the a good broker help you find
a property, but he or she will make sure the price is fair, as well as
make certain that the property is owned by the seller, and that there are
no debts on it.
7. The contract
is prepared by the selling broker and contains:
- All
information of the seller
- All
information of the buyer
- Location
and specifications of the real estate
- The
conditions of payment(s)
8. The contract
is signed at the office of the broker.
9. You pay
a down payment (usually about 10,000 Reais or $3,500 usd).
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10.
When payment has been made, your broker will arrange the registration
of the property into your name via a cartorio (similar to a notary).
10. The cost
for the property transfer is approximately 4%-5% of the purchase price.
11. Payment
can be made all at once or in installments of 12, 24, 36 or 48 months,
but interest rates can be as high as 35%. If you opt to pay in installments,
there is also a currency risk. In other words, if the value of the Brazilian
Real goes down, your real estate becomes cheaper, and vice versa.
12. There
is a 1% "import" tax on transfer of funds from abroad. For alternatives,
check out the websites www.lifestylesbrazil.com and http://www.escapeartist.com/OREQ9/Rio_Real_Estate.html
13. After
registration, you are the legal owner.
14. There
is an annual property tax of approximately 0.6% per year of the assessed
value.
15. You will
need to hire a caretaker to live on the property when you are not there.
16. Visas:
Foreigners are allowed 3 month visas, or 180 days total per year in Brazil.
If you want to apply for a permanent visa, one of the following conditions
must be met:
- You
are married to a Brazilian.
- You
have a child with a Brazilian.
- You
invest 250.000 US dollar or Euro in Brazil.
- You have
reached the age of retirement (50 years) with a pension of at least 2,000
euro or US dollar per month. |
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REAL ESTATE
TOUR OF BRAZIL
I traveled
to Brazil last spring and summer to take a look at property. Come along
for a sample of what I found.
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| TERESOPOLIS
About a one
and one-half hour drive into the mountains west of Rio de Janeiro is the
town of Teresopolis. Jim and Debbie wrote me to tell me about their $30,000
purchase of an estate consisting of four buildings, a 2 bedroom main house,
a spring fed swimming pool, a vegetable garden, an enclosed tennis court,
and over a dozen varieties of fruit trees. This I had to see for myself.
For a personal
account of Jim and Debbie's adventures in buying in Brazil, read their
story at: http://www.escapeartist.com/OREQ5/Real_Estate_Brazil.html
Jim wasn't
exaggerating. Teresopolis was idyllic and he and Debbie had purchased a
gorgeous estate for the price of a tool shed back home. But after a week,
I pulled out the map and began to plan my next destination. The same rarified
air that makes for scenic mountain life in Teresopolis, makes it cold and
damp much of the year. Jim and Debbie love it (maybe because they’re Texans?),
but if I'm clear about anything, it's that I want to live in a tropical
or at least temperate climate near the sea. |
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Debbie and Jim's house; Teresopolis,
Brezil
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RIO DE
JANEIRO
Although Rio
is not a contender in my search for a place to live, how does one go to
Brazil without at least visiting The City of God? One doesn’t.
Through camaecafe.com,
I found a room for rent in a large home in the charming hilly neighborhood
called Santa Teresa. I never did find a local willing to risk his
life to take me out on the town after dark. My hosts, two guys who ran
a circus, didn't go out much, saying that it was safer to entertain at
home. And so I swam laps in their pool with the sounds of live Chopin being
played on the piano, while simultaneously being guarded by two Rotweillers
in the yard.
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Nice as that
was, I'd heard that there was a nightlife in Rio and being a single woman,
I wanted to see it, but not particularly on my own. (I don’t suggest seeing
the movie “City of God” before you visit Rio). I asked the founder
of camaecafe.com, a recent college graduate whom I will call "John”, to
take me out to hear some live music. John suggested that we meet at his
friend's apartment from whence we would head out later. Nightlife
begins late in Rio. But it turned out that John’s friend's apartment was
really his apartment – as well as the home of his parents and two sisters.
We sat on the veranda overlooking Flamengo Beach politely sipping drinks
and making conversation, while his sisters and parents snuck out of their
bedrooms where apparently they’d been banished for the evening, to peek
at us. When 1 AM came and went, I called it a night. John agreed and accompanied
me downstairs to hail a taxi. But on the way out, he showed me his bedroom
where the bottom of his bunk bed doubled as a bright red fort, and the
walls were covered with magic marker sayings and signatures.
"I would be
honored if you'd sign my wall," he said, handing me a marker. "Why sure,”
I said stifling a laugh and adding my signature to the wall. Outside of
the high-rise apartment, we flagged down a taxi, but when John said to
the driver, "Take her to Santa Teresa", the driver shook his forefinger
back in forth in that Brazilian way that means No, and then he stepped
on the gas and roared off. Three more taxis peeled away rather than chance
driving across The City of God after midnight. It was almost 2 AM
when the fifth taxi pulled up. The driver said to get in, and then he ran
every red light getting me home.
Do I want to
live in a civil war zone? No.
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Boris,
editor of LifestylesBrazil.com is one of several who disagree with me on
the merits of life in Rio de Janeiro. He has dedicated his website to assisting
foreigners move to Rio. Boris says that Rio's hot neighborhoods at the
moment are Ipanema, Leblon, São Conrado, Lagoa, Jardim Botanico,
Gãvea, Barra, and Recreio. But he says that investors are starting
to look at other up and coming areas. Flamengo, Botafogo, and Copacabana
for instance. Check out www.lifestylesbrazil.com for the latest.
Anthony DaFrieda
is another expatriate sold on Rio as a hot real estate market and a desireable
place to live. Recently, after receiving a large inheritance, the American
found escapeartist.com online and began his search in Costa Rica. He visited
Brazil for the first time a year ago, and immediately knew it was what
he’d been looking for. One year later, Anthony owns 16 lots and four oceanfront
homes in a bedroom community 35 miles from Copacabana. The custom
3-bedroom homes he builds feature pools and backyards on the beach – and
begin at $150,000. He and a fellow investor are also selling new
townhouses beginning at $49,000, lots at $19,000, and oceanfront lots for
$29,000. |
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To contact
Anthony, email aphat91@aol.com
and take a look at his website at www.residencialbuganvile.com
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BUZIOS
The former
fishing village three hours north of Rio located on a fist-shaped peninsula
jutting into the Atlantic, is renowned world wide as an international beach
resort. Each of its 23 spectacular beaches has its own character. The city
of 25,000 (mostly Argentines) swells to100,000 during high season (January
through March).
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House for Sale; $170,000
Buzios, Brazil
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There
are building regulations in Buzios that limit height and land coverage
so that the city should retain its charming architectural downtown. However,
what I discovered in the course of six weeks in Buzios was a real estate
market that is probably one of the most inflated in Brazil. In February
I was shown a slice of land overlooking Ferradura Beach for $45,000. When
I returned three months later, the price had doubled. Every house
I saw with an ocean view and at three bedrooms and a pool were mostly over
$200,000. I was told that a small group of foreigners showed up last
year, fell in love with a house and offered the owner a million and a half
euros on the spot, no questions asked. Ever since, Buzios property owners
share a common dream called “Who Wants To Be A Millionaire?” Dozens and
dozens of houses suddenly appeared on the market - at a price. Still, two-bedroom
condos on the ocean (Geriba Beach for example) can be had for as little
as $150,000. Expensive for Brazil, inexpensive if you are European
or American.
I asked Carlos,
a local architect in Buzios, why prices were so high in Buzios compared
to Teresopolis. He said, "This is Buzios. A $30,000 house in Teresopolis
in five years will maybe be worth $50,000. A $150,000 investment in Buzios
now will appreciate to $500,000 in five years. Teresopolis is for locals.
Buzios is international." |
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I might add,
that although Carlos was probably right, Buzios is not a community. It
is a tourist town.
PARATI
I took a six-hour
bus ride to Parati located on the Green Coast halfway between Rio de Janeiro
and Sao Paulo. Parati is a well-preserved Portuguese port unlike anything
I've seen before or since. And the surrounding land and remote beaches
are hauntingly beautiful. But it's not called the Green Coast for nothing.
It rains in the rainforest.
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it was in Parati where I was shown my first (and only, thus far) private
island for sale. Dona Maria, the owner of the pousada in which I rented
a room, heard I was looking for property. "Come with me," she said on my
last morning in Parati. With that we took off walking the uneven stone
streets headed for the harbor. Maria stopped to talk to each and every
person we saw along the way, so that the five-minute walk to the pier took
thirty. When we arrived, a bathtub toy boat waited at the pier along with
three of Maria’s elderly friends to shuttle us out to her private island.
You'd never know that 80-year old Maria, wearer of sassy hats, lover of
caipirinhas, and knower of everyone and all that takes place in Parati,
owns half of the town thanks to her ancestors. Apparently Maria needed
cash for a daughter's medical expenses and so she was considering selling
a small chunk of her holdings. We motored past island after island until
thirty minutes later, we beached on a tiny sliver of sand and waded ashore.
There was a ramshackle caretaker house, an open bar, cisterns to collect
water, and an old toothless man who has been the caretaker for years. Together
with Maria, I scrambled over boulders, circumvented thorny bushes, and
stood in the shade of palm trees to gaze out to sea. Maria pointed out
the spot where I could build a house. Hard to picture as it wasn't exactly
flat. But when I squinted my eyes, yes, I could see it. Me Ginger, on Gilligan's
island. |
Private Island for Sale
Near Parati, Brazil
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How much?
I asked. "$300,000. Cash," Maria said.
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Historic Ciudade Alta, Salvador,
Brazil
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BAHIA,
BELLY OF THE BEAST
Three months
later, I returned to Brazil to add Bahia, the soul of Brazil to my search.
The city of Salvador pulsated with energy, music, dance, colors, food,
art, beautiful beaches, and old architecture. I knew I'd love it, I just
hadn’t known how much.
Join me in
the next issue of the Offshore Real Estate Quarterly for a tour of this
most fascinating region of Northeast Brazil, and I'll show you not only
a lakeside resort for sale for $200,000, but also a $35,000 oceanfront
home with a view of Salvador, and much, much more.
For real
estate in Brazil and in other areas of South America check out the International
Real Estate Marketplace - |
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RESOURCES
AND LINKS
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| Robin Sparks
is looking for a country to call home. She is traveling around the world
looking for the perfect spot. Join Robin Sparks in each issue of
the
Escape From America Magazine as she travels around the world
in search of a country to call home. |
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Other
Articles By Robin Sparks
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Additional
Articles On Real Estate In Brazil
Real Estate
in Florianópolis, Brazil - The Island of Santa Catarina - Real
Estate in Florianópolis, Brazil - The
real estate is a bargain, the beaches uncrowded, and the small towns that
dot the island are colonial and picturesque. It's Ilha Santa Catarina,
otherwise known as Santa Catarina Island and simply called Floripa by the
locals; a 200 square mile island located just off the coast of southern
Brazil and it's as good a spot as one could ask for. Imagine a very large
and very lovely Brazilian island with numerous perfect beaches, (there
are 49 major beaches, countless small ones) dozens of lovely towns, and
then throw in the city of Florianópolis, which is a city large enough
(pop 260,000) to provide all of the modern necessities of life without
it being an oppressive metropolis. By Roger Gallo
Exciting Real Estate Opportunities
In Rio de Janeiro, Brazil - Exciting
Real Estate Opportunities In Rio de Janeiro, Brazil -We took a
trip to Rio de Janeiro, Brazil to research the real estate market for this
issue of the Offshore Real Estate Quarterly. We discovered some startling
bargains. The differences between the currency of Brazil and the US dollar
allows us to purchase a $100,000 apartment in Rio de Janeiro for $US40,000.
If you've ever wanted to live in the world's most exciting city this is
the article to read. Great food, warm people, opera, ballet, art galleries,
modern infrastructure and wall to wall excitement in what is without question
the world's most beautiful city. If you want to live there, or simply want
to make a once in a life time investment we've got the facts to get you
started. We talk about real estate values, location, crime, lifestyle,
and Rio's ambiance. By Roger Gallo
Buying Property in Brazil - Teresópolis
In The Serra dos Órgãos - Buying
Property in Brazil - Teresópolis In The Serra dos Órgãos
- Brazil is a vast country and real-estate bargains can be found anywhere,
from the beaches worth fifteen Floridas in the Northeast to the high-rise
condominiums of São Paulo. I chose Teresópolis because I
had friends there and had come upon a bargain in a town of spectacular
climate and views, situated close to the world-class city of Rio de Janeiro.
I had cash in-hand by virtue of having just sold an over-appraised 1060
sq. ft. home in Austin, Texas. By James
P. Kirby
Rio de Janeiro / Buzios - A
Month To Buy a House In Rio de Janeiro, Brazil ...and The Good Life In
Buzios - Juliana
at MR IMOVEIS handled all the investigation and negotiations for me. I
also asked her to find out what the deal was with the kioski’s on the beach.
A resident can actually buy the 12x24ft beach building from the city starting
at R$ 33,000. An established one in Ipanema was offered to me by the owner
for R$ 90,000, must be gringo price. I placed a deposit on the house and
obtained the application to purchase one of the vacant kiosks in Barra,
(there are no vacant ones anywhere else). I was then instructed to set
up a bank account in Rio to facilitate the deal. In Brasil you have to
deposit the full purchase price in a bank at the time the seller delivers
the good title to the real estate to the same bank. Everyone waits about
a month then the money is given to the seller, minus the 2% government
transfer tax and the new title is given to the buyer. By Romel Fajardo |
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