Brazil’s Fastest Selling Property Dr Geraldo Furtado – LAST FEW UNITS!

The Brazilian property market is one of the fastest growing in the world. Fuelling this growth is a booming economy, massive growth in mortgage demand, massive housing shortage, growing affluence and strong housing demand. Not to mention the World Cup 2014 and Olympics in 2016 both to be held in Brazil. It is little wonder that someone becomes a millionaire every hour in Brazil – FACT!

Property investors from around the world are entering the country with the intention of making themselves a small fortune, and Dr Geraldo Furtado – offering modern 2 bedroom apartments in central Natal from £53,000 – is a popular choice. I spoke with the developer responsible for this wonderful development – Arabella Petersen, who knows Brazil and the property market inside out and she has shared some of her insights below:

Developers Corner

Loxley McKenzie interviews Arabella Petersen, Developer, Dr Geraldo Furtado.

Hi Arabella, I hope you are well and thank you for giving us this interview. May I start by asking, Why Brazil?

Plenty of reasons – Brazil’s economy is going from strength to strength and there is a huge demand for housing combined with a mortgage market that has only recently become accessible to the local people:

  • GDP in Brazil continues to show strong and sustainable growth; Average for 2010 at the end of Q2: 8.9%.
  • There is a consistently decreasing unemployment rate – it reached 6.7% in August of 2010.
  • Official monetary reserve changes – from £ 69.305 million debt in 2005 to a £165.048 million in credit in August 2010.
  • Six years ago, Brazil owed the International Monetary Fund £ 23.295 million – in May 2009, Brazil lent the IMF as much as £ 6.871 million. “Isn’t it chic” quipped Brazil’s President – Lula Inácio da Silva.
  • All major financial analysts upgraded Brazil’s credit rating to Investment Grade for the first time in 2008.
  • BRIC economies – Goldman Sachs predict that Brazil will be one of the top 5 global economies by 2050.
  • Brazil is totally self-sufficient and due to recent oil discoveries has some of the largest oil reserves in the world.
  • Financing for residential real estate became available to the general population for the first time in October 2007, with payments plans stretching over 30 years.
  • There is a housing deficit of over 8 million primary residences (an estimated 96% of the deficit is for families earning up to 5 times the Brazilian minimum wage).
  • 30% of houses in the Northeast of Brazil (where our developments are) are considered “inadequate and should be replaced”.
  • Financing for the purchase of residential real estate increased from £7.648 million in 2003 to £8.278 billion in 2010 and still represents only a fraction of GDP.
  • It is estimated that by 2020, an additional 28 million homes will be required to meet the growing demand and eliminate the existing housing deficit.

What is the special ingredient that has made Dr Geraldo Furtado one of the fastest selling developments in Brazil?

Firstly, our business strategy is to sell our developments approx. 20% below market value and we always do a comparative market analysis comparing other developments in the area to ensure our prices are extremely competitive. We also sell almost exclusively to overseas investors whereas other developers sell to the local market as there is extremely high local demand and therefore no need for them to look outside.

In this respect we have found our own niche in the market. The local demand also ensures an excellent exit strategy on completion.  Our clients are also drawn to us because of our solid reputation (we are AIPP winners and have been shortlisted for the OPP Awards), our track record with three completed developments, our strong business ethic and our transparency.

Tell us a little about the location?

Petropolis is one of the most chic and well-established neighbourhoods in Natal.  Dr. Geraldo Furtado is close to the beach as well as the business centre of Natal, the large shopping centres, supermarkets, schools, universities and the famous Dune Park. It is also very close to the new bridge “Ponte de Todos Newton Navarro” which now links the south zone to the north zone of the city and will provide quick access to the new airport once completed in 2013. It is also only a 20 minute drive from the current airport.

What is available to purchase and at what price?

Please click here to download price lists – we are almost sold out, so you will have to be quick!

What is your estimate for Capital Growth over the next 5 years and how can you realistically back this up?

As you can see from the table below regarding two of our completed developments, capital growth has reached up to 41,5% per annum.  We usually calculate the rate of return on investments very conservatively, using capital growth figures of 5-15% per annum. Request our FACT SHEET ANNEX with calculations based on 5% capital growth. In this respect over 5 years we would estimate capital growth to be between 25-75%.  Also consider the facts in question 1 regarding Brazil´s economy.

Finished developments

Carecas Beach15 units in Ponta Negra, Natal / 100% sold and delivered in Q1 2009

2007 2008 2009 CAPITAL GROWTH
FLOOR £ 46.050,00 £ 71.088,92 £ 84.425,00 83% (41,5% ANNUAL / PER ANNUM)
FLOOR £ 49.120,00 £ 68.866,24 £ 81.355,00 66 (33% ANNUAL / PER ANNUM)
FLOOR £ 53.725,00 £ 75.325,52 £ 89.030,00 66% (33% ANNUAL/ PER ANNUM)

Brazil Tropical Flat 23 units in Ponta Negra, Natal / 100% sold and delivered in Q1 2009

2007 2008 2009 CAPITAL GROWTH
AVERAGE £ 53.725,00 £ 84.425,00 £ 101.310,00 57% (28,5% ANNUAL / PER ANNUM)

What rental guarantees do you offer?

4-year rental guarantee of 6%.

You mentioned that Dr. Geraldo Furtado is priced below market value. Do you have any independent valuations or comparisons that you can show us?

Please request our comparative market analysis which names all of the developers in the area, so anyone can ring and enquire into prices of other developers at their leisure.

What is the exit strategy?

With the local demand being as high as it is, considering all the factors mentioned in question 1 (mortgages for locals becoming available recently etc.), we are fully confident that the exit strategy is secure.

We use one of the best local real estate agents to sell to the local population, and charge 7% commission. Or else clients can opt to sign our rental agreement of 6% per annum for four years, and sell on after 4 years or before, around the time of the World Cup, when capital appreciation will have increased the value of the property even more.

Colordarcy’s VIP Members are serious investors who are looking for the best deals. We are not going to allow you to talk on our newsletter without providing our VIP Members a Special Offer, so what can you do for us?

Our discounts/special offers are for those buying more than 1 unit.  If a client buys 2 units, he/she gets a 3% discount, if he buys 3 units; he/she gets a 4% discount and so on.

We also offer FREE flights out to Natal for any client who is in a position to purchase a unit by close of business Wednesday 20th October 2010.

Sounds like a great deal to me Arabella. Colordarcy VIP Members who would like to take advantage of these special offers please Call: +44 (0) 207 100 2393 or Email: [email protected].

If you have not yet purchased and would like assistance in choosing the best units or have any further questions please send us an email, call us, or simply let us know a suitable time to call you back.

Read more about Dr. Geraldo Furtado

We look forward to the opportunity of assisting you to invest securely and successfully.

Kind regards

Loxley McKenzie

Managing Director

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Categories: Brazil Property / Property Invest

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