Our latest deal is a profit-focussed investment opportunity located in the southern coastal city of Camboriú in Santa Catarina, which has the potential to return a minimum 43% gross profit in just two years from an incredibly low entry price of £14,220 / R$45,500. At this price you can afford to buy two or three units, especially as we’re discounting our fees for multiple purchases.
We have negotiated a 30% discount from the developer’s list price on 100 units within the Colina do Cedro entry-level housing project. If you profited from the property boom in the North of England - mostly associated with the houses constructed for local workers - you may appreciate the potential of getting into this sector of the Brazilian market today. To view a video about the location and development please CLICK HERE.
Why we chose this deal
Discounted price of £14,220
The developer has reduced the price of units in Colinado Cedro by 30% for R2i investors. Brazil’s finance market is still in its infancy so even though the developer
already owns the land he still needs to raise funds for construction. Buying at a discount reduces the risk in an investment and makes your property work for you by locking-in value from the start.
Clear exit
The developer, Abramar Inc., will market your unit domestically for the best possible price before completion in 2010. This route offers a clear short-term exit strategy,
however, you can also choose to keep hold of your unit and utilise the future growth potential of the market.
Limited supply, high demand
Balneário Camboriú is an established seaside resort. Real estate developments in this affluent holiday destination are high-end, and new beachfront apartments sell here for R$1.5million and above (approx. £430,000). Local reports suggest that average property prices in the region increased by 30-40% between 2006-7. With
such sizeable profits available, developers are naturally concentrating on upscale builds and normal workers are finding themselves priced out of the city. Suitable housing, at entry-level prices within easily commutable distance, is scarce and we therefore expect demand for Colina do Cedro to be high.
Entry-level housing
Colina do Cedro is the first entry-level development on this scale in Camboriú. Entry-level housing in Brazil is targeted at households earning three to five times the
national minimum wage (R$415 per month1) and an article in São Paolo’s Tauana Daily Marin newspaper suggested that R$55.9billion of investment would be needed to meet the demand for housing of this type in Brazil (estimated to be 7.9million units2). The unique nature of this project encourages us that demand will be high.
Government-subsidised housing
Brazil’s Congress passed an amendment in 2001 that guarantees the right to adequate housing for all and began introducing reforms to help the average Brazilian
purchase their own home. The government is helping banks introduce a new ‘popular home’ loan and to subsidise the interest on mortgages for new entry-level houses, meaning more Brazilians than ever will be able to afford a house in Colina do Cedro, further assuring your exit strategy.Local industry Santa Catarina’s economy has reportedly grown by over 300%3 in the past three decades and it is the industrial sector that contributes most to the region’s GDP. Latin America’s largest manufacturer of electrical motors and transformers, WEG Industries, is based in Santa Catarina and has a plant in Brazil’s second largest port, Itajaí, just 10 minutes from Camboriú. The port’s planned expansion, which began in April 20084 will create another 4,000 jobs in the area and as local reports suggest that port workers typically earn R$45,000 – R$85,000 per annum, this is another large addition to the Colina do Cedro target market, boosting demand even further.
Tourism market
Balneário Camboriú is a popular beach resort with both Brazilians and international visitors. Although the city’s official population is just 95,000, surveys put the number of non-permanent residents in the summer months closer to 700,0005, as tourists and second-home owners flock to the city. The influx of visitors provides a massive wealth injection into the already prosperous area and generates extra jobs in the service industry. These workers are unable to afford to live in the affluent beach area and add to the final target audience of Colina do Cedro.
Developer track record
Abramar Inc. has been developing real-estate in the Balneário Camboriú region since 1992. Colina do Cedro is the company’s second entry-level housing project but will be the largest development of this type in the whole of the region. Abramar has also previously been involved in an 8,000-unit entry-level housing project in Ecuador. Proven track records are invaluable when choosing this type of profit-focussed investment, giving confidence that the developer can complete the project as specified and within time frame.
Buyback guarantee
Should a unit fail to sell before completion, the developer has agreed to buy back the units for R$55,000. This underwrites your investment and locks in extra security.