Nov 19, 2015
I have been selling and investing in property here in Natal,North-East Brazil for the past 8 years. I am constantly on the look-out for exciting opportunities to maximize returns. Here are 3 excellent options for a foreign investor looking to capitalize on Brazil's currency devaluation (down 35% since last year) and multiply investment returns over the short to long term here in North-East Brazil
Brazilian Investment Opp No 1
OPERATIONAL MINE
81 hectare Sand Mine,
Short term returns(2-3 years)..potential to expand ,operational with monthly payments..
The owner is approaching 80 yrs old and has no motivation to continue the business. He has a sand escavation licence for 25 hectares of the 81hectares with 16 hectares left to escavate.
40,000 tonnes per hectare at 7 reals per tonne = R$280,000 per hectare x 16= R$ 4.480,000 to dig out of the ground.
Currently he brings in R$ 21,000 net per month(10 truckloads per day)..this revenue could be stepped up by additional activity and price increase per tonne. Demand is strong and constant...the sand, services housing construction on the north side of Natal. There is a possibilty to apply for licensing additional land (on top of the 16 hectares) This region is also popular for agricultural production..fruit pulp factory, papaya plantations neighbour the property with foreign owners.
Asking price for the full 81 hectares is 2.2 million reals..this can be paid in installments or you make an offer on the mine only..in the region of 1.4 million reals.
Brazilian Investment Opp No 2
DEVELOPMENT TAKE-OVER
Lake Front Development under Construction in Tibau do Sul.
Longer term gains (3-4 years) Partnership available for part payment in units completed. Selling for 50% of market price in Brazilian currency.
The developer of this project went bust and is looking to sell lock stock and barrell for R$ 4 million reals / 1 million euros. I don't have the actual numbers on the project as it was passed through today however let's presume the project has 120 units already built (but not completed) and would need an additional 3 million reals to complete the development. You would be purchasing each unit for approx 58,000 reals (all in) Market price for a 2 bed apartment - 3 bed home in this location is currently R$ 200,000- R$ 300,000. This would give you a gross sales return of R$30,000,0000(at an average price of R$250,000 per unit) with an initial investment of R$ 7,000,000
Brazilian Investment Opp No 3
LAND BANK
Urban Land Area next to local Gvnt Office's in Macaiba
Short-Long Term Gains. Buy to Hold, option to make a partnership with local developer for high rise apartment complex in return for % of the units. Selling for 40% of market price.
The owner of this 15,000 m2 land parcel is in financial straits and needs to sell. He has therefore dropped his asking price to R$850,000 which is less than half the market value..other land parcels in this size bracket, with this town center location are selling for up to 3 times the value in terms of price per m2.
This is a great opportunity to buy and wait for land prices to increase further. The town of Macaiba is only 7kms from the new international airport, has an export free zone and is set to triple it's population over the next 10 years. This is one of the few remaining land parcels of significant size in the town and would be suitable for a shoppig center, large scale apartment project (200+ units). If you were to make a partnership with a local developer,they would normally give you,the landowner, 15-18% of the units(30-36 apartments with a projected value of R$130-150,000 each ( R$ 3,900,000- R$ 4,680,000 ) paid in cash.
Please contact me if you require any additional information on the investment opportunities above.
Also if you are looking to invest in other large-scale properties; hotels, renewable energy, mining, housing developments or developing luxury resorts, anywhere in Brazil, I have the know-how and connections to source your requirements.
Mike SmithBRAZIL ǀ Real Estate Investment Consultant/
Consultor de Investimento Imobiliário
Cel: +55 (84) 9993-8936
Office: +55(84) 3345-4406
Email: mikesmithbrazil@gmail
Skype ID: mikebrazilbeachhouse My Professional Background: br.linkedin.com/in/mikesmithinbrazilFollow Me on Twitter: https://twitter.com/mikesmithbrazilBrazilian Investment Blog; http://investnatalbrazil.com/Brazil Property Website: http://www.BrazBeachHouse.comProperties on FaceBook: https://www.facebook.com/mikesmithbrazilAmazon Authors Page; amazon.com/author/mikesmithinbrazilYoutubePage;https://www.youtube.com/channel/UC3WMaCgq2Rr4kiqCbcQStQQMy Google+Page;https://plus.google.com/u/0/+MikeSmithNatal
You made a wise decision if you get a Brazilian investment. It's a good country to invest in.
ReplyDelete