Wednesday, May 25, 2011
I’ve just returned from a whirlwind scouting trip in Brazil…a short trip where I packed in as many property viewings as I possibly could. You’ll get updates on what I found in the coming weeks. But today, I want to bring you a time-sensitive deal that I came across in one location in northeast Brazil.
Joao Pessoa is my favorite city in Brazil. (You can see the city’s location on this map.) I love Joao Pessoa’s small town vibe, despite the fact that it’s a large city, with all the conveniences that you need on your doorstep. I love its beaches, and the fresh outdoor lifestyle you can enjoy here.
Mornings center on the boardwalk for walking, jogging or rollerblading…in the tropical afternoons, you can take your pick: the pink-gold sand of the city beaches, the turquoise shallows of the offshore reef, or the white crescent beaches north and south of the city…and evenings are for relaxing over dinner with friends and family.
I’m not alone in appreciating this laid-back beach lifestyle. Joao Pessoa is a top retirement destination for Brazil’s professional classes. They usually retire young, and seek an active retirement, in a safe location with a good climate. Joao Pessoa fits the bill. Most of these retirees opt for larger properties, with luxurious amenities, either close to the beach or with ocean views. In fact, there is a thriving market in the city for condos costing upwards of a million reals.
The property market in the city is also strong for investors, who buy property pre-construction and either sell on completion or rent the unit out. The real estate market in Joao Pessoa has seen a steady rise in prices in recent years. But it hasn’t seen crazy overbuilding, or a scramble to erect a solid line of condo towers along the boardwalk. Strict planning regulations limit the height and density of buildings on the boardwalk. That preserves the small beach town feel of the city…makes the boardwalk a premium, desirable location…and protects ocean views for units further back from the beach.
The city is attracting more tourists, too. But there is a lack of hotel accommodation. You won’t see well-known hotel chains in the city. Most hotels are small, family-run or Brazilian brands, and most need a facelift.
I stayed in the city’s nicest hotel, the Verde Green. It’s a nice boutique hotel, but not outstanding. My room was on the small side, the tiny window overlooked a car park, and the finishings felt a little on the cheap side. Nevertheless, I paid 380 reals ($232) for two nights. That was for a Sunday and Monday night, out of season, and a at “bargain??? rate I found through an online hotel discounter. On the hotel’s website, I’d have paid double the price.
The deal in Joao Pessoa is for a new building on the boardwalk, which is now ready to occupy. The developer has six units left (out of the original 56) in the building. Most of the units in the building were 30 square meters (322 square feet) and these sold quickly. The remaining units are larger, ranging from 44-68 square meters (473-731 square feet).
The building has hotel-type services available, a roof top social area with a swimming pool and sauna, and a restaurant. Once furnished, these units will make ideal short-term rental properties. Our local broker contact John Curtis has projections for rental income, costs and rental yield, which he can send you if you contact him here. He also offers rental management services.
The building is located in the prime boardwalk neighborhood of Cabo Branco. Two units have private decks with plunge pools, and FIVE units have ocean views. The building, as I mentioned, is ready to occupy. The developer wants to move on with his latest project, and he is happy to offer a 10% discount to cash buyers on the last six units in this building. That offer cuts the start price from 251,580 reals ($153,946) to 226,422 reals ($138,552).
Remember, only six units remain in the building…and the 10% discount is only valid until June 15th. For a full information package, contact John Curtis here.