Off-plan off the agenda for overseas property in 2010
In the early 21st century off-plan was the doyen of overseas property purchases. Separating the ‘men from the boys’, off-plan was high risk but equally high reward in a buoyant market. Today those rewards are diminishing and the risk is even higher due to a series of new factors created by the tougher economic climate. Off-plan is, in many cases, now off the agenda.
Samantha Gore, Sales & Marketing Manager for Brazil real estate agents uv10.com, comments, “Off-plan made good sense in a booming market. By purchasing early clients could cherry-pick prime units with the best views and, by the time they took possession, see increased value through capital appreciation – either naturally or with the aid of developer price hikes. Today, unless participating in a dead-cert scheme such as the Brazilian Government’s ‘Minha Casa Minha Vida’ low-cost housing drive, or associated property for the local market, the formula just doesn’t work. For holiday homes in the sun, the current economic climate has made off-plan too much of a risk.”
Samantha continues, “The financial reward of off-plan purchases for holiday homes often fails to stack up these days. In between handing over a sizeable amount of cash based on computer generated plans, and the property actually being complete ‘x’ months or years later, the value of your unit could have stayed the same or even dropped. Add to this motivated sellers of completed units who could be offloading theirs at less than you paid off-plan and it is clear that capital appreciation is no longer a given. It’s also very feasible that these vendors picked prime units early on, so you could be competing against the best properties at the very best prices. A strong argument for buying at the end of the build rather than off-plan.”
Buying a home before even one brick is laid certainly presents its own set of potential problems nowadays. Promises get broken, developers go bust and in extreme cases deposits can never be recovered. Even in the seemingly innocuous case of a delayed build your money is kept tied up before you can rent the property out and generate a decent return on investment – or even simply enjoy a holiday. With some notable exceptions (see above) complete or nearly-complete is the way forward nowadays.
Samantha finishes, “Pipa, on Brazil’s favoured northeastern coastline, employs strict conservation laws that limit construction in the area. As such, you really need to look at what’s already built in order to acquire the best homes in the best locations. With completed properties, buyers can tangibly judge the quality of the finish, important as in the case of off-plan, every developer claims to offer a ‘high specification luxury product’, whilst in reality a fraction actually do. Buyers can also judge how well the project is being maintained on an ongoing basis – very important in a warm, sunny climate. Meanwhile, most of the projects promoted by uv10.com have full rental management and hotel services in place so you can ‘try before you buy’ and, should you make a purchase, hit the ground running with immediate rental income.”
Complete or nearly-complete Property Available in Brazil:
Pipa Beleza - uv10.com/brazil-property-pipa-natal-6.php
Pipa Beleza is a boutique collection of apartments, penthouses and villas with sea view roof terraces. On-site facilities include a private Ocean Club comprising Thai-style Spa and massage therapies, relaxing pools, Balinese baths, a yoga / Pilates studio, meditation garden, rooftop juice bar, champagne gazebo and chic fusion restaurant. Now completed and up-and-running as one of Pipa’s premier resorts, Pipa Beleza enjoys full rental management and hotel services maximizing both the investment and lifestyle aspects of the property.
Just one out of the 49 units remains from the developer at Pipa Beleza – a two bedroom 66m² apartment with 56m² of private garden for 265,000 Reais (approx. 97,400 GBP) unfurnished. However, there are prime resale units including a fully furnished two bedroom two bathroom 85m² penthouse with panoramic sea views and rooftop Jacuzzi on the 33m² terrace available for 350,000 Reais (approx. 130,500 GBP). There are also three villas, one of which is a fully furnished three bedroom three bathroom 124m² villa with sea views from the 32m² roof terrace complete with Jacuzzi surrounded by 178m² of private corner-plot garden at 595,000 Reais (approx. 218,000 GBP). All are exclusive to uv10.com.
Domus Villas - uv10.com/praia-de-pipa-natal-5.php
Domus Villas is a small collection of highly luxurious villas. The Italian-designed homes are constructed to order and will number only 22 on a sweeping 10,000m² plot leaving 80% of the resort construction free. 15 have already been built giving prospective purchasers 15 unique ‘show houses’ to view.
High up on a plateau with direct access two of Pipa’s finest beaches – Praia do Amor and Praia da Cancela – yet just 600 metres from the tip of the bustling high street, Domus Villas are a prized commodity. On-site the developers have fashioned a lagoon-style relaxation pool 300 metres in length and planted lush gardens teeming with bright blooms and coconut palms.
With a standard base model of either two or three bedrooms ranging from 178m² to 215m² in area, Domus Villas are fully-furnished and specced to the end-users’ requirements including the incorporation of fine South American hardwoods, flat-screen TV in the lounge and each bedroom as well as a modern kitchen and air-conditioning throughout. Prices start from 245,000 euros (approx £220,000 GBP) for two bedrooms with the added advantage of on-site hotel management and maintenance to maximise rental incomes in your absence.
For more information, visit uv10.com.
