Buying in Rio and/or Natal?

[apwhite]

Hello there,

Greetings from a first time poster.

After years of investing in funds and stocks (but never in property) , I feel it is time to invest in property. Specifically in Brazil. Not only due to Brazil's obvious (and well publicized) real estate opportunities, but also due to the fact that I love the country and have visited many times.

I am a huge fan of Rio and can see myself eventually settling down there. I also like the NE and believe that Natal is a good place to invest.

So to my question - I have ca. 550,000 Reals to invest and am wondering whether it would be better to invest mainly in Rio (maybe ca. 400,000R),e.g. in Copacabana, Leme, Botafogo or Flamengo and buy a small place in Natal with the remainder.
Or would it be better to invest a larger sum in Rio to get a better place and forgo the investment in Natal?

Obviously 2 properties is more overhead, but the capital appreciation would seem to be greater in Natal? As stated above, the place in Rio would be somewhere I would want to eventually live, but both places would initially be buy to rent.

Anyone with any suggestions?

Thanks a million,
Andrew

 

[debzor]

Hello there,

Greetings from a first time poster.

After years of investing in funds and stocks (but never in property) , I feel it is time to invest in property. Specifically in Brazil. Not only due to Brazil's obvious (and well publicized) real estate opportunities, but also due to the fact that I love the country and have visited many times.

I am a huge fan of Rio and can see myself eventually settling down there. I also like the NE and believe that Natal is a good place to invest.

So to my question - I have ca. 550,000 Reals to invest and am wondering whether it would be better to invest mainly in Rio (maybe ca. 400,000R),e.g. in Copacabana, Leme, Botafogo or Flamengo and buy a small place in Natal with the remainder.
Or would it be better to invest a larger sum in Rio to get a better place and forgo the investment in Natal?

Obviously 2 properties is more overhead, but the capital appreciation would seem to be greater in Natal? As stated above, the place in Rio would be somewhere I would want to eventually live, but both places would initially be buy to rent.

Anyone with any suggestions?

Thanks a million,
Andrew

Personally I would invest more in the NE, because I believe certain areas there stand to show greater capital appreciation.

Specifically I have invested on the island of Itamaraca, and have already received great rental results and sales with excellent increases in values in just 2-3 years.

 

[JMBroad]

The trick is Rio is a much larger city than anything you'll find in the Northeast. This means that the real estate market is much more complex.

For example in Natal in Rio Grande do Norte, the real estate market is pretty straightforward. Certain areas are doing very well and almost every neighbourhood is geared towards a very specific market.

Within Natal there are 30 different neighbourhoods (and that's a city with under one million inhabitants.) Do a google search for the following words: "RENDIMENTO NOMINAL MÉDIO MENSAL POR ÁREA GEOGRÁFICA" natal to download a pdf with the breakdown of each neighbourhood.

Other cities in the Northeast will have more or less neighbourhoods.

Rio de Janeiro has 158 neighbourhoods.

http://www.armazemdedados.rio.rj.gov.br/arquivos/1357_mapa rendimento médio mensal em salários mínimos.JPG

You can look at thirty neighbourhoods in more or less detail and decide where the best investment is for your budget. Looking at 158 neighbourhoods is a lot harder.

 

[robh]

Hello there,

Greetings from a first time poster.

After years of investing in funds and stocks (but never in property) , I feel it is time to invest in property. Specifically in Brazil. Not only due to Brazil's obvious (and well publicized) real estate opportunities, but also due to the fact that I love the country and have visited many times.

I am a huge fan of Rio and can see myself eventually settling down there. I also like the NE and believe that Natal is a good place to invest.

So to my question - I have ca. 550,000 Reals to invest and am wondering whether it would be better to invest mainly in Rio (maybe ca. 400,000R),e.g. in Copacabana, Leme, Botafogo or Flamengo and buy a small place in Natal with the remainder.
Or would it be better to invest a larger sum in Rio to get a better place and forgo the investment in Natal?

Obviously 2 properties is more overhead, but the capital appreciation would seem to be greater in Natal? As stated above, the place in Rio would be somewhere I would want to eventually live, but both places would initially be buy to rent.

Anyone with any suggestions?

Thanks a million,
Andrew

Hi Andrew,

If you are after a place to live eventually in Rio, why don't you buy in RN first where capital appreciation and rental returns will be greater then when you are ready to live in Rio sell the investment property(s) on allowing you to buy something much bigger in Rio than you could before?

Regards,
Rob.

 

[apwhite]

Thanks everyone.
@Rob: Can you explain to me why rental yields are higher in RN?
I presume this is because apartments are let on a short term basis to tourists?

Cheers,
Andrew

 

[Nixx]

Thanks everyone.
@Rob: Can you explain to me why rental yields are higher in RN?
I presume this is because apartments are let on a short term basis to tourists?

Cheers,
Andrew

Hi Andrew ,
I saw your message in this forum & decided to Join & answer from the Rio perspective.But I am not a expert, ok! I am an 37 year old expat from uk.Who came to Brazil 4 years ago looked at the different markets cities & now lives in Rio with currently 2 apartments & have stepped up the ladder with a little buy & sell.(I am no property tycoon)
The 1st thing I think anyone investing needs to do is maximise their cash or loans for long term investing as right now cash is king!And returns can start flowing straight away.
Properties in Rio is a little more complicated as its a huge market but don't let this put you off, because with "good" advice you can break this down area by area.
Rio has excellent returns if you do everything right,
I chose it (among many reasons) because it is a beautiful City, the first port of call for the majority of tourists visiting brazil & has a mixture of everything & pretty much the best Tourist infrastructre, hot women.diverse & interesting.

The truth with Brazil is ,' greater returns always come with a higher risk'

So It is true, you could buy somewhere else 1st(Natal) & make more money because it takes off as the next boom! holiday spot, but people still will want to come to Rio!
It has sugar loaf-christo-Maracana-New Years -Carnival.world cup-Olympics.

Also if you would like to eventually live here, you have a place to stay when you need a quick Rio fix , to keep your spirit alive!And a getwaway excuse to check how your property is doing.
Prices are the problem here right now,R$550,000 is 2 bed in Ipanema money, or one 2 bed in Copa & one 1 bed in copa.
For appreciation in property value , I would (& have) put my money on Ipanema .
Ipanema is smaller & cleaner a little newer with better bars.
But your money can't go wrong in Copa also.

You could think about Barra also depending on your motives.
I have not yet been to Natal, So I cannot compare it to Rio, I have been to other cities, fortaleza, belem ,Bahia, Santa catarina Maranhao, e.t.c.
I did not choose them for now because Rio is easier to get to & I always figured if I want the quieter beach life as I get older I could sell up & find a nice plot & build a house as land is plentiful up North, here in Rio its a different story.
I know it is a long post (Don't worry I won't charge you)but I hope this has helped you, I think it is the perspective you were lookin for.
Nixx

 

[globalinvestor]

i was thinking to invest in natal but now i'm confused?

so do you think rio is better?

thanx