Staged Payments On Wish List for Brazil Property Investors

Online, October 19, 2010 (Newswire.com) - With holiday home buyers mainly confined to the sidelines, foreign interest in Brazilian real estate is still booming thanks to a huge influx of pure investors eager to cash in on Brazil's flourishing economy and growth in the domestic housing sector. And, according to northeast Brazil specialist agents www.uv10.com, these investors are all stressing the importance of long stage payments.

Samantha Gore, Sales Manager for www.uv10.com, explains, "Brazil clearly provides a platform for excellent investment returns, certainly when considering the low interest rates in the UK, but the strategy has to be right and for the vast majority that involves stage payments. Reasons vary according to individual circumstances but a feeling of enhanced security is a common theme, especially when the payments are pegged against milestones of the construction process. This way they have the reassurance that the development will be built as planned."

Samantha continues, "Many larger investors are spreading the risk across a number of projects which commits them quite heavily financially and therefore they prefer staged payments. They could also sell-on prior to completion to release some cash without having committed all their funds. Lastly, Natal's new airport and 45,000-capacity stadium in preparation for the FIFA World Cup are not expected to be ready until early 2014. As www.uv10.com focuses on this geographical area, our clients are quite happy and excited to wait, enjoy the capital appreciation now and realise the inevitable profit in a few years' time."

One project that fits the bill perfectly is Edificio Dr Geraldo Furtado (http://www.uv10.com/designer-apartments-in-Petropolis/) in the privileged Natal city hotspot of Petrópolis. Construction has just commenced on these two and three bedroom apartments but payment terms are spread until completion in January 2013 - perfect timing to coincide with the final stages of the international airport's construction and the World Cup build-up. At that time investors have the option to either sell for very high profit or hang on and enjoy lucrative rental income via a hassle-free four year 6% rental guarantee or by using the developer's rental management team for returns of around 10% net each year - higher during World Cup year.

Edificio Dr Geraldo Furtado caters to domestic consumer demand - in particular the rapidly expanding middle class which is fuelling Brazilian economic growth. This aspirational sector has new access to mortgages, where lending is up 77% compared to this time last year, is fighting to move up the property ladder and get into the best locations such as Petrópolis. According to www.uv10.com, overseas investors will find this sector of the market to have both the best exit strategy and the highest profits. The developer is happy to offer off-plan properties well under market value to foreigners initially as they pay in full and more quickly - 100% throughout construction - this enables the developer to seamlessly roll funds into his next project.

With 86 units across 26 storeys (just four apartments per floor) Edificio Dr Geraldo Furtado has an array of upmarket on-site facilities to suit the city worker audience including underground parking, a communal swimming pool and barbecue area, pool bar, sauna, games room, laundry, reception and 24 hour gated security. Natal's main business district, fine dining, the arts, mall shopping and lazy days on Praia do Meio beach are all on the doorstep whilst the new World Cup stadium is within 5km.

Prices start from 152,000 Reais (approx. £57,000).

Contact uv10 on [email protected], visit www.uv10.com or telephone UK local rate +44 (0)845 643 1036, the Spanish office +34 952 764 560, Brazil +55 21 395 808 25 or USA +1 888 839 7009. Skype uv10-brazil.

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