Brazilian property investment – A “no-brainer” for Paul Knott

Enthusiastic, intelligent, researched and prepared, web developer Paul Knott presented himself as the ideal client to Brazil real estate experts uv10.com. But perfection generally comes with a caveat; in return uv10.com had to source Paul the ideal property to meet his exacting requirements. A challenge relished by both parties.

London-based but Blackpool-born Paul, 42, wanted to lay the foundations for an overseas property portfolio with a real contender for investment success. He plumped for Brazil as he saw it as the “biggest no-brainer” in the current global property marketplace. However, to ensure that he wasn’t being seduced by its beauty and its beaches, he set about imagining the day when he might have to cash-in on the sale of his as yet un-bought property and assess Brazil’s resale market. Surging interest from Americans, Europeans and native Brazilians plus new international airports under construction offered plenty of reassurance.

With no real ‘negatives’ to speak of, although he rightfully noted you’ll never find these in the glossy marketing brochures, Brazil appeared to have no traps waiting to be fallen into. The country could never be accused of being overcrowded, oversupplied or overpriced and perhaps the only real drawback was a lack of mortgages, although this can be perceived as an advantage. Ironically whilst the USA and UK are withdrawing credit facilities and watching house prices tumble, Brazil is gradually going through the process of introducing finance, so house prices will undoubtedly rise. Now is a good time to get involved.

Paul gives his perspective, “Having decided on Brazil, in particular Natal, the closest part of the continent to the UK and rest of Europe, I enlisted the support of Samantha Gore at uv10.com, who I found whilst searching online for a specialist in the region. Using Samantha turned out to be a wise decision as her company, uv10.com, only deals in Brazilian real estate and she has spent plenty of time on the ground enabling her to answer each query immediately with no need for an “I’ll get back to you”. Samantha steered me in the direction of Pipa, an authentic Brazilian paradise with sweeping beaches and a vibrant nightlife as well as a huge environmental consciousness when it comes to construction. I settled on a three bedroom detached villa in Pipa Hills for 190,000 euros and although I could have certainly bought cheaper, the project is low density, only 13% will be built upon, the property offers privacy as it’s detached and is complete and therefore ready to start earning a rental income.”

Paul and partner Sheila opted to visit Pipa before firming up a contract, a wise move to get a feel for the area and some reassurance but one that ended up costing Paul a few euros. Pipa Hills experienced a price increase while Paul was busy booking his flights so had he felt able to commit to the property one month earlier he could have saved himself 7,500 euros, a lesson learned in fast-moving emerging property markets.

Paul offers some tips, “Remember you’re buying in Brazil not Bradford. The emphasis is on keeping the house cool rather than soaking up the sun so consider east facing for the cooling sea breeze and check that there’s good air-conditioning. Also, whilst they’re not my favourite, a gated community is a sensible option. If you’re 5,000 miles away it’s tricky to keep an eye out for nice Brazilians moving into your vacant property in your absence. We’re really pleased we visited the area, Pipa is indeed stunning, in fact we’ve set up pipabrazil.net to showcase its attributes and incorporated a specialized Movement8 walkthrough of our villa. Many of the other villages look desolate and lack facilities and could take years to emerge. That isn’t to say don’t buy there, but just make sure you know what you’re getting yourself into, and certainly be within a couple of hours maximum of an international airport.”

Paul now has ambitions to create a property investment vehicle to secure more Brazilian real estate, anyone got 10 million quid to invest?

Pipa Hills, Pipa, Natal
Pipa Hills is a secluded resort of just 41 villas constructed with the finest materials, arguably one of the most upmarket residential communities in the area and aimed at wealthy domestic and foreign tourists. Located just 650 metres from the beach and 500 metres from the centre of Pipa, residents have all of the activity of Pipa and the tranquility of its unspoilt landscape on their doorstep. Each villa has three bedrooms, plenty of outdoor decked terracing and interior wooden beamed ceilings whilst the community shares two freeform swimming pools, an attractive feature lagoon and a bar and barbecue area for sociable evenings outdoors. Gardening, cleaning, maintenance and rental services will also be on-hand within the site.

Prices start from 190,000 euros for a three bedroom fully furnished villa.

For more information, visit uv10.com.