Real Estate in Brazil

Rich with rainforests and beaches, villages and skyscrapers, Brazil is one of the fastest growing countries in the world. And as the country grows so does its real estate market. Brazil is on its way to a real estate boon. Prices to purchase real estate have already increased up to 20% in some areas. Investors, immigrants and locals are all cashing in on the incredible availability of real estate in Brazil at bargain prices.

Finding Your Castle

The interior of Brazil is still relatively unpopulated with large rainforests and stark undeveloped communities. The best properties can be found along the coast.

Bahia

The state of Bahia is located along the north east coast of Brazil. Its primary city Salvador, as well as the outlying suburbs, has some of the most spectacular Brazil real estate. In addition the lifestyle is very tropical and laid back with friendly easygoing people for neighbors.



Rio

Rio de Janeiro is one of the more exotic and modern cities in Brazil. Due to its popularity with locals and Europeans the Brazil real estate market here is a bit more expensive than other areas. You can plan on looking just outside the city for the best bargains. Or, be patient if looking in the city proper as bargains can be found but they just take some time to fine.



Sao Paulo

Sao Paolo is the largest and most modern city in Brazil. It has undergone a recent windfall in property development. However unlike most other real estate in Brazil, real estate in Sao Paulo can be quite expensive. However, the promise is one of increased value as the city maintains its growth and development.

Purchasing Practices

Before buying real estate in Brazil there are several important rules that must be followed:

1. Get a CPF

The first order of business is to obtain a Brazilian ID called also known as a CPF. To get this ID a birth certificate that has been translated into Portuguese by a bona fide translator must be secured. This birth certificate must be legalized by the Brazil embassy in your country of current residence. The Banco Do Brasil will issue a CPF but bring your passport and birth certificate to apply. There is a small fee. The following day go to the Receita Federal to get your CPF number and you CPF card will be mailed in no more than 60 days to your address in Brazil.

2. Find a good Real Estate Broker

Choose a real estate broker that is fluent in your native language if it is not Portuguese. Find a broker that has been in the real estate business for several years and not one who is trying to quickly cash in on the current boon in Brazil real estate. A good real estate broker will help you find real estate in Brazil with a fair price and will make sure the property actually belongs to the seller.

3. What is in the Sales Contract?

The sales contract is written up by the real estate person who represents the seller and contains:

• The sellers personal information
  
• The buyers personal information
  
• Description and address of the property being purchased
  
• The means by which the property will be paid for
  

4.The Down Low on the Down Payment and Other Fees

The down payment is usually about $10,000 Reais ($3,500 US dollars). There is no restriction on how much of a down payment to make only on how little. Property transfer can cost around 4.5% of the purchase price of the property. Payment for the property can be made in one lump sum or installments. Understand that interest rates can run as high as 35%. Transferring funds from another country will cost a 1% import tax.

5. Owning Your Castle

Your little piece of Brazil real estate is transferred to your name once the down payment has been made. One the transfer of ownership is registered by your broker the property is legally yours. Owning real estate in Brazil will cost an annual property tax of .6% of the assessed value of the property. For those not planning to live in the property year round plan on hiring someone to live there when the property is vacant. Or, try and rent out the property. Do not leave your Brazil real estate vacant for long periods of time.

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