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| Buying/Renting Property | |
 Gringoes.com : Brazil : Buying/Renting Property |
 Topic: Buying apartment in Pinheiros |
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Larry LaRose
Senior Member 
Joined: 11 November 2005 Location: Canada Online Status: Offline Posts: 144 |
   Posted: 05 July 2010 at 01:26 |
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The other glaring half is Pinheiros continues to get great infrastructure, and will continue to be strong throughout the next decade, property-wise. The only other place I would buy in SP is Analio Franco.
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Juninho
Senior Member
Joined: 09 November 2006 Location: Brazil Online Status: Offline Posts: 1310 |
Posted: 05 July 2010 at 13:59 |
The answer to why Brazilians don’t always buy is credit, or rather the lack thereof. Until recently, most purchases were 100% cash. Even today, deposits are huge. They have to be since interest rates on loans are so high. This has constrained the market and forces many to rent. The prices you quote are interesting as many forum users are convinced apartments of 100 square metres are only R$1,500 per month! I recommend buying. The market should only go up, but remember, there#’s no guarantees in life….. |
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Never do today what can be put off till tomorrow, and never do at all what can be passed to others
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gretzteam
Newbie 
Joined: 27 May 2009 Online Status: Offline Posts: 9 |
Posted: 05 July 2010 at 15:12 |
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Hi,
Thanks everyone for the replies. I ended up following one poster's advice: rent a place for a few months. One thing that I didn't think of and that is quite scary is this whole exchange rate thing. Example: -You borrow 100k in Canada at 2.5% interest. Great deal. -Buy an apartment here cash. -Now imagine that the Real goes back to 4:1 instead of the current 2:1! If I sell, even if the property value went up, I might still lose a lot of money! Even if I only rent the place, I'd be earning Reais which would not be worth much. This is quite a scary thought! You're not only bidding on the house market in Pinheiros, but also on the value of the Real! Gretz. |
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Larry LaRose
Senior Member
Joined: 11 November 2005 Location: Canada Online Status: Offline Posts: 144 |
Posted: 05 July 2010 at 16:08 |
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Yep. I was very lucky with exchange rates many times. I remember transferring the Can $ to Brasil in 2007 when the Can $ was 1:2, approximately doubling my money.
Because the Real is exchanged using the USA dollar, even if it's coming from Canada, one should study the US vs CAN $ too. Good luck. |
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DUNGA
Gringoes.com Guru 
Joined: 30 March 2006 Location: Brazil Online Status: Offline Posts: 3700 |
Posted: 05 July 2010 at 16:38 |
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One reason people tend not to buy for a short term stay is the amount of time it takes to sell. The seller may have to give up any potential gains just to move the property. Imagine being back in Canada paying condo fees on your apartment in Pinheiros with your proxy and keys in the hands of your Brazilian real estate agent.
Best Luck!!! Edited by DUNGA - 05 July 2010 at 17:03 |
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Dave
Newbie
Joined: 28 November 2007 Location: Canada Online Status: Offline Posts: 17 |
Posted: 05 July 2010 at 20:00 |
This is precisely the risk to worry about. I would like to think that Brazil's currency (and inflation) problems are a thing of the past, but I certainly would think twice about betting a hundred thousand borrowed dollars on it! |
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CENTURY 21 Dave
Newbie
Joined: 28 July 2010 Location: Brazil Online Status: Offline Posts: 3 |
Posted: 29 July 2010 at 17:32 |
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I just signed a lease on a 3 bedroom 160m2 apartment on Oscar Frerie in the Pinheiros side. The rent is only R$1.800/month. Although the condo is high at R$1.000, it is still quite a bit less than what you are encountering. Rent is high but not that high. If you like I can refer you to a great rental agent.
I read some of the other posts and I have to agree that just about any real estate investment in the area now is a good idea. As a fellow international investor (in Rio) I have had wonderful results in Brasil. Since i've been investing here the past 5 years the real has remained stable and the economy seems rather solid, so I wouldn't worry too much about the real slumping against the CAD, but of course it could happen. I always advise property investors to be prepared to hold the properties for a minimum of 10 years to get maximum gain. The worst you could do is sell in panic if there are some difficult times ahead in the Brazilian economy. |
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David L. Moyer
Executive Vice President CENTURY 21 Brasil |
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gretzteam
Newbie
Joined: 27 May 2009 Online Status: Offline Posts: 9 |
Posted: 30 July 2010 at 14:32 |
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Hi,
I guess you have a really good deal at 2800R per month. But when comparing to buying prices, it's still quite a lot of money! You can buy one of those new condos on Fradique Coutinho for about 330k. Assuming one can get a decent interest rate (3%), the mortgage payment would be much lower than 2800R$ per month. Thanks for the thoughts, Dave |
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Juninho
Senior Member
Joined: 09 November 2006 Location: Brazil Online Status: Offline Posts: 1310 |
Posted: 30 July 2010 at 14:52 |
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Just what size are these 330K apartments? BTW typical interest rates in Brazil are about 15%. Yes they are indeed currently just about the highest in the world. |
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Never do today what can be put off till tomorrow, and never do at all what can be passed to others
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