Location The hotel is located in an area called Buizos. This is considered by most Brazilians to be the "Saint Tropez" of Brazil due to its proximity to Rio De Janeiro. Buzios is actually located in the state of Rio which indicates its proximity. The resort is beach front with phase 1 being the Breezes / SuperClubs hotel. The remainder of the development will offer residential accommodation together with an 18-hole golf course.
Ground breaking Broken Ground already
Completion Date Due Q1 2009
Number and type of units Only 37 units released to the non-Brazilian investor market. All the remaining units have sold out.
Frequently Asked Questions: What are the stage payment requirements?
- 30% of the contract price is due with contract
- 10% 1st stage payment – March/April 2008
- 20% 2nd stage payment – September/October 2008
- 40% payable on completion of construction – Q1 2009
Is my contract fully assignable before completion?
Yes the contract can be sold on before completion once the contract to purchase has been signed and the 30% deposit paid. Any cost of contract reassignment must be paid for by the buyer/seller.
Is there a bank guarantee for my purchase?
No there is no bank guarantee offered however the developer is very large and well respected with a number of major projects including government buildings in planning / under construction / completed and the purchaser security is one of the highest available.
What is the Capital Gains Tax law in Brazil?
For non-residents the CGT is 15% of the profit on the property
What are the additional purchasing costs?
The total purchasing costs amount to approximately 7-8% of the value of the property. This is for lawyers fees, stamp duty, VAT, CPF number, Searches, Power of Attorney, Bank Transfers etc. Individual breakdowns can be provided on request. The main outgoing costs are:
- VAT (ITIV) is 3% of the purchase price
- Title Deed (Local Notary Office costs) is 1.25% of the purchase price
- Deed Registration with the government is 0.75% of the purchase price
- Administration Fees are approximately 1% of the purchase price
- Lawyers fees are set at 1% of the purchase price
Who do you recommend as a lawyer to process the transaction for me/us?
We highly recommend using Manzanares International Lawyers who are one of the leading global experts in Brazilian property law with over 90 members of staff. They are based in Europe and we have negotiated a special rate for PRV2 International purchasers of 1% of the purchase price (minimum €1,500).
How many units are being offered to the non-Brazilian market?
Just 37 units are being offered to non-Brazilian residents. The remaining units on the site have been sold already and contracts have been exchanged on almost all of the units.
What are the annual maintenance charges I must pay?
None. As it is part of the hotel pool, the maintenance charges are all included for purchasers
How is my income calculated?
The income is actually calculated as a % of the hotel profit and split evenly between the owners based upon the sq footage / purchase price of the individual units. This is an excellent way to operate a hotel-condo as there is no risk of no income when your unit is left empty. In addition, the owners benefit from the profit from all ancillary services the hotel provides and not just the room rent including bars, restaurants, conference facilities, Spa and sports facilities.
Do I get any personal usage of my unit?
Yes you get the option of using it for up to 33 days per annum. If you do not use it, you receive more profit as the room can be rented out.
Is the personal usage available any time?
The hotel will operate a “points” system so you can use the unit varying days per year depending on when you choose. If all personal usage therefore is in high season then there are less days available.
What is the reservation process?
An initial deposit of €3,000 must be paid to PRV2 International together with a completed reservation form. Manzanares International Lawyers will contact you from there within 24 hours to start the purchase process for you.
What is the ownership structure?
The units are offered freehold.
When I sell the unit, must the new buyer opt into the hotel rental pool?
Yes this is a compulsory stipulation of the purchase / lease contract.
What is the completion date of the unit?
The units are due for completion at the end of the 1st Quarter 2009
What is the estimated occupancy of the hotel?
Hotels in the area run at around 75-77% occupancy but the Breezes / SuperClubs resorts around the rest of the world tend to run at 100% occupancy for 100 days a year and on average 80% the rest of the year.
Finance available There is no commercial finance currently available on any projects in Brazil but mortgages will become available in the future and therefore a remortgage may be carried out to release equity in the future.
Projected Capital Growth Strong. Over the last three years prices have been appreciating at over 15% per annum Projected Rental Yield 9%+. This is based upon similar hotels in the area currently renting exceptionally fast.
