Our latest deal is a profit-focussed property 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.
Investor Security
As security on Colina do Cedro, before any monies are released to the developer a lien, backed up by a personal guarantee and in a form acceptable to Ready2invest’s Brazilian lawyers, will be placed on a separate piece of land, equal to the total amount of monies invested
by Ready2invest buyers. The land is not connected to the Colina do Cedro project. Your funds will be held in a secure Ready2invest Client account until the lien is legally in place.
Should an event occur that prevents the completion of the development, the landowner (who is a shareholder of the developer) would be required by law to use the Investor security value in the land to repay investor monies in full. The lien prevents the landowner from selling or
refinancing the land to use for another cause until the development is complete.
The land mentioned above is a substantial asset and will also be used as collateral against the developer’s buyback guarantee, which may be used to underwrite the onward sale of your property.
Buying through a company
It is possible to buy a property in Brazil as an individual or through a company. While there is an additional cost to set up and maintain a company, there are also some tax incentives which some investors, especially those purchasing multiple units, may see as beneficial. The capital gains tax in Brazil is only 15% but there is currently no dual taxation treaty with the UK. If you purchase as an individual and bring your profit back into
the country, and that profit exceeds your capital gains allowance in the UK, then you may have to pay UK gains on it as well.
Setting up a local holding company in Brazil through which to purchase your unit(s) costs around R$500, and maintaining it costs circa R$800 per year. Through this structure it would then be possible for you repatriate your gross gain.
Every investor has a different individual tax situation and what might be right for you may be very different for someone else. Ready2invest is unable to offer any advice on tax so please contact your own advisor, or the lawyers mentioned on the next page, to learn which structure of purchase might be most suitable for you. Buying through a company
Lawyers
Lawyers representing our clients must be able to accomplish the following:
• Verify the ownership of land title and the agreement between the landlords and the constructor for constructing the building.
• Verify the legality of building permits.
• Act with power of attorney for the investor.
• Sign the undertaking contract.
• Review the draft of the final purchase contract/s.
• Sign the purchase contract.
With these points in mind we have instructed legal firm Vernalha Guimarães & Pereira to guide you through all the legal aspects of buying a unit in Colina do Cedro. Vernalha Guimarães & Pereira Advogados Associados is an established firm based in Curitiba with links in other offices throughout the country and overseas. Amongst other practices they specialise in construction, international business, and investment and finance.
Their fee to R2i customers for carrying out conveyancing and due diligence on your behalf is R$1,600 (£500) for your first unit, plus disbursements. However, there will be a further discounts on this fee for any additional units purchased (see page 15 for details). The total fee is payable at contract. We are confident that a high level of representation will be maintained throughout the purchase process.
Currency providers
Ready2invest currently works with Moneycorp, a currency conversion company in London that offers an extremely personal service and excellent rates.
Moneycorp
Moneycorp, the UK’s leading foreign exchange company, can help you achieve the best exchange rates, making your money go further. They offer a number of benefits including no commission charges or receiving of bank fees and fast, efficient worldwide transfers. Our contact, Ben Nicholson, is always available to take your calls at Moneycorp’s London office. Their number is 020 7823 7500 or visit www.moneycorp.com.
The R2i fee
What our fee covers:
• Finding the deals through our network of international finders
• Personally visiting all developments for face-to-face meetings with key personnel and viewing the sites
• Negotiating the discount using R2i reputation and buying power
• Financially structuring the deal for maximum returns
• Completing extensive research and due diligence on: Title, planning, legals, country and town, the development, and the developer
• Sourcing reputable local English-speaking lawyers in every country wherever possible
• Negotiating favourable fee structures with lawyers
Service:
Our investor relations staff will help you through the entire investing process up to completion of the development.
Their roles incorporate:
• Answering any questions you may have during your investment process
• Guiding you through the contract and payment process
• Helping arrange a power of attorney if necessary
• Arranging site visits (one week’s notice needed)
• Helping to source furniture suppliers and packs where appropriate
• Updating you on the progress of your development
What we don’t do:
• We don’t arrange mortgages
• We don’t convert currency
• We don’t manage or sell finished property
• We don’t advise on tax
• We don’t provide legal advice