Real Estate in Fortaleza, Brazil
Fortaleza - Brazil
When I first came to Fortaleza in 2001 property was very inexpensive by US standards. The dollar was strong and the investors hadn’t discovered the Northeast of Brazil. Land and property were mostly in the Brazilians’ hands.
Beach homes, villas, and other desirable property belonged to the rich and middle class of Brazil, especially Fortalezans; Europeans had begun to invest but it was still pretty much a Brazilian area. The stampede began around 2004 when EVERYONE began discovering the Brazilian Northeast. Today condominiums, resorts and vacation homes are going up as quickly as a wild fire. And the building never stops. (When I came here in 2001 there were only 125 skyscrapers, today there are close to 700; the population was 1.2 million, today it is 2.4 million.)
Anyone who thinks they can outsmart a Brazilian in Brazil had better do some rethinking; it won’t happen. For one thing, Brazilian bureaucracy is known throughout the world; only a Brazilian can get through it. Secondly, when you sign your name on the dotted line, the Brazilian developers and investors have utilized such excellent lawyers that it is almost impossible to get out of a contract or have your money returned. Third, the laws are so different, the procedures so complex and the practices so unique to Brazil that European or North Americans are like fish out of water. That doesn’t mean it can’t be done; what it does mean is that you need to do a lot of research and investigation before you actually buy, whether for investment, a vacation home or to live full time.
The property you buy might not be deeded to the seller; it might belong to someone completely different. It is very expensive in Brazil to register deeded property from one owner to another so some people decide not to do that. They exchange a Contract of Vendor, a piece of paper which they hold on to until they’re ready to sell, then they use that paper do the same thing; sometimes this paper can change hands four or five times without ever being registered. The real owner may never get involved; however, there may come a time when the deed holder will want to either sell the property or take ownership. Since they own the land, they can legally confiscate or sell the property. If you have just built a $250,000 house on the property, you have given the property owner a nice beach residence free of costs. And, it’s perfectly legal. ALWAYS GET THE DEED TO ANY PROPERTY YOU BUY, even if you have to pay a little more; and no matter how good a deal it might appear, don’t buy ANYTHING unless you do get the deed!!!!
Don’t buy property over the Internet; take the time to fly to Fortaleza and look at the property. I have heard many, many tales of people who have bought over the Internet without ever looking at a piece of property only to find out that (1) the property was overpriced by thousands of dollars, (2) the development was never completed, (3) everything was tied up with legal problems and may never get finished, (4) the developer either didn’t own the property or (5) the Brazilian Government stepped in and declared that no building could be done on that property for one reason or another. (This is particularly prevalent with beachfront properties.) If you’re going to invest $100,000 or more, at least do a little investigating; an airline ticket is a good investment.
Always use a reputable real estate broker. Ten years ago, when aircraft landed at Pinto Martin International Airport, the lobby was filled with prostitutes waiting to meet the flight; today it’s filled with “real estate brokers” willing to sell you whatever you want…at whatever price you’re willing to pay! Everybody has a cousin or a friend of an uncle or someone else who is in the business; they will become your “best friend in Brazil”. Don’t believe it…they’re out to get your money and they don’t care about you. You will become their best friend while they’re trying to make the sale; once you’ve signed on the dotted line, they forget you! There are good, reliable, honest realtors in Fortaleza who will try very hard to present an honest deal. That’s not to say that they will sell you something for nothing; in Fortaleza, everything is a seller’s market. But you can buy smartly.
Always have an honest, reputable lawyer help you with any piece of property you want to buy and make sure the lawyer views all paperwork before signing anything! Let me repeat that: ALWAYS HAVE A REPUTABLE LAWYER LOOK AT EVERYTHING BEFORE SIGNING ANYTHING! I won’t try to go into Brazilian laws; there are so many of them that you have to be a lawyer to understand them. As I said earlier, contracts are ironclad and always written for the benefit of the seller; get a lawyer involved anytime you buy anything. You will find this practice to be extremely beneficial to you in the long run…and it might even save you from making a mistake later.
Take the time to investigate what you are buying; ask other people, check the papers, etc. Most properties are overpriced; in addition, many times there are two prices…the price the Brazilians pay and the price the Gringos pay…and they are different! If you can find a Brazilian to negotiate for you, it is the best way to negotiate; otherwise pay close attention to all the details before buying anything.
Of course, I have heard all of the stories about title problems the last couple years, but people just keep talking about this place. I wonder if now is the time to buy, or if this is all another round of foreigners getting burned.
NO Mike. As far as I can see it is just that informative and exciting news. It is in a candid way also a cautioning letter for all foreigners. I live in Canada. And I can see how you weak hearted lots so brain washed by North American media can feel kinda intimidated by all those negative hoolabalooos… Ha ha ha. Just dare to look around…Slowly… There are alot of good things all over the place. Think…. How else all those hundreds millions people can coexist and manage to flourish historically and politically in modestly peaceful manners since its conception. LOL !
You might wonder why in the hell an idiot guy like myself would call on you to say bunch of s### like this. But Hey. Do yourself a favor and pup with my traverse a while and you might get different wind of what it is to be in another’s boot who HAS BEEN THERE and DONE THAT.
I Have an extensive ( well extensive compared to those who never stepped on Brasilian soil ) . I lived there for years, in southern Brasil , in states of Sao Paulo State ( grew up there mostly in City of Sao Paulo, a city of over 20 million habitants !!) ) and Parana’ State. And as an adult I have been back there many many times. Have relatives, as in brother nephews and nieces and even grand nephews etc. So according to them I am a gandfather but thanks to my late blooming fatherhood I am still reeling from watering weight of kids of my own….
I know people of all kinds over there like surgeons lawyers nad realestate agents etc. and they all do just fine. Yes It is a bit of problematic for personal security and what nots but once you get wet behind eras you will do just as good or better. And to think or lets say to dream of spending a beautiful warm sunny day by the beaches with your honey filling up on fresh crabs and shrimp on ice cold beer…… ………………..It’s killing me ! LOL..
I’ve bought and sold property exactly in Fortaleza around 1998-2003 . The city was was a one of most sought after tourist destination to locals year around and jam packed during summer. It was still under develpement then with sporadic apratments put up here and there near beaches . All beaches are public domain in Brasil thank goodness. Northe American property laws are so bad and confined it snot made for human living.. But in Brasil it is dtill a free land. Unfortunately this ugly North American culture of privatising beach fronts is starting to raise its sinister head along southern brasilian coast lines as of late.
I was involved with building a motel there with my brother . It was going fabulously well . All of 2 acre lot surrounded by 10ft brick wall and good size front gate and this huge and spread out structure with roof on it finally. I chipped in there for few months working hammering down few nails… Got darned sun burnt real dark. Ha ha ha ..But it was real fun being there. It was play time and work time as you can tell. My brother was in charge of construction and I was mostly financing it.. I used times there to entertain myself and rejuvenate again by traveling through Rio ( my favorite destination, and always so bloody exotic to boot) ) and other my fav locations all over the map. You can only do so much in 3 or 4 months I am there you know.
Unfortunately for all of us we had run into a tough spot excatly around that time . My brother decided he had to quit a little later due to extremely unfavorable and volatile commerce problems ( at the time a hyper inflation took place, at over 1000%/year on all building materials and all hardwares in general) . It was tough time to really do anything. It was almost all done built except for finishings…We had partial furnishings in storage.. A brand new labor laws with change in mimnimum wages went into force just then too increasing construction cost by 3 folds over night !!! And couldn’t get hold of enough materials to continue. Everybody was holding onto stuff not wanting to sell and only sell at exorbitant price. etc.. Bag of cement skyrocketed 3 folds over night and scarece .
One of toughest decision we had to take in all ventures in Brasil.. My brother had experience of building motel . But not like this… He had built one previously . His motel was , albeit small in size , only had 8 units , and it was half way into putting in an addition for another 10 double decker this time . He built them personally over years, one that he had sold earlier few years before. But all that expereince told him was to stop the construction for temporaryly until things got better. But things took way too long to stabilize and he was forced to liquidate, unfinished site. You know what else ? That little motel turned out to be sooo good and profitable all the way to the bank .. And While he had it for years on he had a grand ‘ol time running it . Had several cars, house, motor bikes, beautiful women by galore…Its pretty good for women themselves too, so much to do and enjoy . ,But as for male of the species … HEY there’s no better place on this drafty earth to feel home like over there. Customers never ran short my friend…even in those bad times . ..And you know why…
As for real estate in Brasil there is very little known financing terms . They buy and sell mostly by cash or through seller held IOU types entailing monthly principal payments where money is partly paid in parcels over few months to a year, interestingly, without any interest.
Today local banks have started motgage financing schemes similar to ours. But its far in between . Still most transactions are dealt with cash only.
During 1998 -2002 Brasilian federal government went through upheaval and chaotic economic situations with IMF ( they had about $50 billion in borrowed money from IMF with strings attached from which the government was unable to manage to get out of so soon) and international trade difficulties caused by Bush senior going into war which caused another severe distortions within this country’s monetary demands. . Would you believe it was like 4-5 :1 dollar? You could’ve had a fabulous dinner for two with wine and dine and stage show and come out under $50bucks ? 50 cents to a bottle of beer with snack on the side… Only few years ago..
But today it’s a different story. Brasil as a country is in exceptional growth period. Exchange rartio today at just around 2:1 With presidency of Lula da Silva, Brasil now currently enjoys an outstanding economic growth and strong currency as a result. Unfortunately the crime rate hasn’t ebbed to levels of American palates but that is just a normal occurance for the locals whose 75% or greater of 175million population live in minimum wage or worse. But mind you that still leaves a good 30 million or over in higher living standadrs than most middle income families of North America. To say they are rich is not an anomaly. All millionares in their own terms so to speak..
So that is what fuels the underlining Brasilian economy at all times. AS many as over 30 million millionaries spending money and flying around and buying and selling properties and expensive goods. Imagine that HUH ? We can’t even dream of having that in Canada HA ha ha.. .
I did cross country travel/explorations from southern tip of Foz do Igaucu to Frontier town of Boa Vista in Northern Brasil — And mind boggling single engine plane trips into Amazon jungle to owning gold mining spot inside Amazon.etc. The pilot pints out yonder to the right way dwon below towards setting sun and tells me of the downed small twine engine cargo plane of few says ago .. How nobody ever gets out of there alive once gone down.. For criss sake I am on this minuscule single engine thing here feeling every bumps and shakes of air turbulance listening to that goulish story and looking down trying to actually locate the site ?? All crazy stuff hot balloon filled with glory days of what ?? just days agoo!!! It’s such a mistic sight looking down from afar up being tossed around like leaf on a ocean wave. And belowing loud sound of engine gives that more impetus on how precarious my life was on the line at the moment. Skin tightens up and wracked up nerve wants to escape this foolish body that captivates it. The glistning shine of wet dark greenish hue of Amazon jungle dotted with shimmering water sparkles and long snaking rivers is a sight to behold and you will never ever forget ..
Well let me tell you my friend. I’d go in there in a heart beat again but what I want to do for real is this .. I really want to build a motel there again this time with some sort of consortium setup. That is to say to have enough money to actually finish the job. I don’;t have any at the moment . And economy is very stable today and I see it to reamain so for foreseeable time. I used to be millionaire myself , my friend, but now I am pretty much defunct, sorry to say . But I have my 3 kids to look at for the effort I spent on them at home raising them alone. But simply put . Its a regal gold mine inside city limits.
So I’ve been vying for the right opprtunities to get back in. But its been pretty hard getting back up once down. I admit. I’ve had many multi million dollar deals that went sour in South Florida just before another Bush junior with his idiotic Iraq and very suspicious #7 CIA/FBI building controlled collapse, ruined it for me again. As well as many other deals that somehow fell through for similar reasons. .. Hey you make some and lose some and make some again.
But one thing I know is this. Motel is the thing to do over there my friend. Investment required is not as high as even 2nd class hotel but makes more with minimum management.. If you don’t know it , I’ll tell you a bit. It’s a place where lovers go for a nightcaps.etc… so its built to dream set like and it has absoutely unanimously huge followings everywhere. Most 3-4 calss hotels tries to operate in similar venue but can’t really compete . During Canaval time that runs for literally months on end the business is catching fire…. A gold mine … Its one of most profitable real estate or buisiness ventures in Brasil to be had. Oh besides if you buy that business the land is always included so there you go… Anyho’s I’ll let you go for now and good luck hunting… The time to go in is now before Brasilian economy goes into G8 membership… Just look at what China is doing >>> I never had problems with overpaying . I guess I come out talikng more like a local than foreigner even after all these years. So that helps me when I go there. Gee for Gods sake I haven’t been there for over ten years now. Been so busy with kids and what nots.. lost flow of time.. And yes, It helps to have a good reliable and trustworthy agent and lawyers but mostly and always do not forget to do a thorough background check and make sure you register the damned deed in person !
Cheers
Gregory
Gregory;
A Brazilian friend of mine wants to open a sports bar in Sao Paulo. What do you think of it’s chances for success ?
Gary
Mike, of course there are no guarantees of how long this cycle of prosperity in Brazil is going to last but the predictions from economists all over is that it is going to last at least 7-8 more years.
So now is a good time to invest as you still have a lot of time to yeld high profits and still get out safely when things start to go sour.
Rita, if Ilheus is better than Fortaleza why is it that Fortaleza is the second favorite touristic destination for Brazilians? Or you supose they don´t know the country? And prices in Ilheus are just as high as in Rio but without the benefits of Rio (number one touristic detination for Brazilian tourists)
Truth is that Ilheus, as Salvador, Itacaré and other destinations in Bahia are overpriced because they are “right next door” from Sao Paulo, a city that has 20 million citizens and produces more than 15% of Brazil´s riches. For this reason all beaches around Sao Paulo and Salvador de Bahia are expensive (real estate and cost of life) because they are the backyard of Sao Paulo.
Why is everybody dreaming of Fortaleza? Big city, Industry, polution. Why don’t you ever consider Ilhéus in Bahia? It’s a real jewel, the beaches are spectacular and all those tricks and frauds hardly ever happen here. I have a marvelous property for sale (2700m2 with villa and guest house), European style, lovely and the price is a bargain. I think foreigners should – if ever possible – buy from foreigners in Brazil since brazilian people have different ideas about quality and comfort! So if it doesn’t have to be Fortaleza , you should by all means visit Ilhéus!
Regards,
Rita
Rita,
I am interested in finding out about your property.
My email is jfitzpatrick8183 at charter dot net.
Thanks
HeyThere–
I saw your post on a website regarding buying property in Fortaleza and you mentioned that people should consider looking at smaller less developed communities and mentioned Ilheus. Do you have other suggestions for that area as well? We are looking for a retirement/investment home in Brazil and would like to be able to find something decent on the beach for $100,000 or less. The trouble with looking on the internet is that you only hear of the ultra hot markets and I just as soon find something quieter and less discovered. If you have any suggestions I would be grateful.
Hello all,
I have done a lot of research on Brazil myself and am actually heading down there in a week, Feb. 9th. Forrest, if you’re looking for a nice place that isn’t as high priced as Bahia, etc. Maybe check a little further south to the island of Florianopolis, in the State of Santa Catarina. Do some research online and I think you might like what you find. Also, I will be living in a small beach town named Campeche. I will be staying with a local friend and would be willing to keep in contact with you via email if you like? To answer any questions you may have. I’m really excited to see what Brazil has to offer. This is my first trip to South America, so I’m anxious to say the least! my email is sigpipd@yahoo.com.
Cheers, Robert
Hi there Gary H. I just happen to notice your request about setting up a sports bar in Sao Paulo.
I grew up my teenage years in Bairro de Liberdade downtown area away from center core. So I know what its like to see the humongous change this city has undergone while I was out. And I always try to make a point in stopping by in all my return trips. Not only the city has expanded and grew up and changed so dramatically, the weather pattern has changed much too in that short time. In few other occasions I noticed ice forming in the winter that I never saw as young boy. I am told by my brother that certain northern Brasil has places that are way too hot and changing rain patterns etc.. while southern side has ice and snow where there has never been!! I guess that was due to climate change…
But it is just way too many things to talk about so I will taylor this bit for you now.
Here is one account of what happened few years back.
Hotel color flier told me I should go to this place. I told where to to a taxi driver and soon I was in front of this average looking store front like place. There was a line up to both sides of the street and there was door man and couple of others selling tickets on table set up by the doorway.
I looked around and all I saw was this place in the smack middle of block in a quiet residential neighborhood . Street lights were on so I could see people walikng around far away and there was main street few blocks away. Around here it was rather busy with cars and taxis and more people lining up.
They wanted to know if I was from local TV station from all the video equipments I was carrying, camera and lights etc…
Two young owners came out to see me and welcomed me into the club and introduced me to security staffs and barmen and waitresses and told me to enjoy my stay saying ” fique a vontade” ( do what ever I wanted) and even offered me a beer . There was a long average looking bar to the front with two step raised good sized deck with rails where bunch of young people were sitting and having dinners drinking and there was another smaller satelite bar at back with stools. The owner went to disc jokey and anounced to the crowd to be extra behaving for the night for doing the video and threw his arms around me. Crowd whistled and clapped hands and went back to dancing. . I moved on to the back and settled into a higher ground over a chair and table .
I said “com licensa” ( excuse me) to those around the table and stood up to take in the video. These young folks at next table asked me if I would video them dancing. Well, they put on a grand ‘ol dance steps . They casually stood up by twos at a time in line doing Tangos Merengues and Samba etc.. and then procedeed to dance away into the crowd with Forro dance that was sweeping the nation at the time. They moved swiftly and gracefully as if professional dancers as crowd gathered and stood at side watching them and applauding them as they change steps and change dance partners.
Soon the whole crowd on the floor was doing the same Forro. This went on and off and on for hours. Everybody was smiles and sweating like a rain…
It was very happy atmosphere and hot and sweaty to boot all night long. Women and girls were all pretty and people were so sociable and friendly. Not because I had camera.. Oh no..that’s the way brasilians are, mind you.
I came out of there in wee hours thanked those people and owners . They asked me if I was gonna show it on any channel soon . I told them it might and smiled back .. We shook hands.
Took the taxi back to hotel and then I noticed redish tint over the horizon as I entered the hotel door.
Brasil has no curfew time in general. Business like this goes on until crowd thins out in the morning and then open at noon again. Drinks and food prices were very reasonable and comparable to local outdoor cafe’ known as Pontos or (coner drink holes) Ponto do Cafe because they are located typically at corner of a block; . Food was excellent and tasty ready cooked fresh at the full kitchen attached to front bar. Drinks were generous and beer bottles came with ice frostings on it as expected as always.
I still have that tape somewheres I think.
Let me know anything else.
Oh by the way GAry H. Should you need a local help, or anybody else for that matter, I have few good people that can give you a hand there. I have relatives in Fortaleza, Manus, Belem, and just about all around amazonia and over Brasil as well. I even had a beachfront house lot in Fortaleza once . That is on top of the motel we were building with my brother.
Just call ftfgking@yahoo.com
Hi all,
i am researching brazil, ecuador, panama and costa ricca, to find where i wnat to live.
i’m after rainforest, mountains, valleys and water in a warm, all year round climate for around $100k.
do you have any recommendations? these countries, and the internet, are huge and its hard to find where to start looking.
i bought the lonely planet guides and finding all references to the places that have what i want, then trying to find real estate prices in those areas is a challenge.
Pete
Hi there!
Just noticed your comments here.
Have you found your place yet?
Are you still in Africa?
We are well here in Fortaleza.
I have 3 clients from London, England here at the moment, but only for Revillion, New Year’s. They are off to Rio after this.
Drop a line when you get a chance.
Andy
Hi all,I think I need a good Lawyer from Fortaleza,I have brought 2 properties there and after 3 years still do not have the Deeds to either,I hope I have not been ripped off.
Peter