Below is a selection of FAQs about The Coral, the BRIC Group luxury beach resort in Northeast Brazil. Our FAQs cover information about:
Buying property in Brazil
- 1. Can foreigners buy property in Brazil?
Yes, foreigners are able to purchase property in Brazil and own 100 per cent title. BRIC Group offers a step-by-step guide to buying property in Brazil and will assist you throughout the purchase process including all the necessary paperwork to get your title deed for your Brazil property investment.
- 2. How much capital gains tax is charged on Brazil property?
Capital gains is charged at 15% per annum.
- 3. Do I need to open a bank account in Brazil?
No, this is not necessary if you’re investing in Brazil property and it can be difficult since many banks require you to have a permanent or temporary visa. If you decide to rent out your property in Brazil, the property management company will collect the rent, make payment of utilities and can arrange transfer of monies anywhere.
- 4. What is the currency in Brazil?
The Brazilian currency is the Real, known as Reais and denominated as R$.
Buying property at The Coral
- 1. Is The Coral a secure property investment?
BRIC Group has ensured that a number of safeguards are in place to make this a secure investment. These include:
- All the land at The Coral resort is owned by BRIC Group who is also the developer;
- The Coral has full planning approval and licences from the Brazilian authorities;
- Construction work on site started in early 2014 and is now well underway – infrastructure works, beach club and numerous private villas;
- The Coral has won several prestigious awards from the Americas International Property Awards including Best Residential Development in Brazil and Best Residential Development Central and South America;
- BRIC Group organizes inspection trips so that you can visit in person to see the resort and area for yourself;
- There are no outstanding loans, bank mortgages or bank financing for the land. BRIC Group own the project 100% outright and purchased the land with cash;
- BRIC Group are an asset backed company with 20 years’ experience in international developments and real estate projects;
- BRIC Group studied the economy, market and key investment indicators before investing their own money in this opportunity;
- Full title deeds and warranty ownership are available to show to you;
- The viability of the exit market has been calculated and analysed by BRIC Group;
- We can also assist in the re-sale of your plot.
- 2. What licences does The Coral have?
The Coral is fully licensed by the Brazilian authorities. Permissions include the Semace licence, necessary to build and install the resort’s infrastructure. We have also secured building permission and licences for the beach club and villa plots currently under construction. Individual licences for each plot will be applied for prior to construction and generally takes 2-4 weeks to receive.
- 3. Does BRIC Group own the land?
Yes. The owner of BRIC Group, Rob van Kuijk, purchased The Coral site in 2008. He owns full title to the land and plots are in his name, or the name of his company HBM Empreendimentos Imobiliários Limitada.
- 4. Are plots in The Coral purchased freehold or leasehold?
Plots at The Coral are freehold.
- 5. What about the legal aspects of buying property at The Coral?
To ensure your Brazil real estate investment counts on legal expertise, we work with Montenegro, Zanocchi Gentile (MZG) Advogados, one of Brazil’s most prestigious and long-standing legal firms. Their highly professional and expert team will assist international purchasers throughout the process of buying property in Brazil.
- 6. What taxes (closing costs) are involved with buying property in Brazil?
Buying Brazilian land and building a property in Brazil involves tax considerations. Your lawyer will explain all the implications of these. Taxes depend on whether you purchase as an individual or a company, but as a rough guide, you can expect to pay between 6 and 8 per cent of the purchase price in fees and taxes (closing costs).
- 7. Is finance available to purchase the land and build the villa?
We offer in-house finance options for the purchase of the land in Brazil and for the villa construction costs. Brazilian mortgages are generally only for Brazilian nationals or for foreigners with permanent resident visas. Villa construction costs are made in stage payments spread over the building schedule.
The location of The Coral
- 1. Where is The Coral?
The Coral resort is located in the state of Ceará in Northeast Brazil. The resort is situated in Praia de Guajirú, an area of outstanding natural beauty and home to some of the best beaches in Brazil.
- 2. Why did BRIC Group choose this area for The Coral resort?
Our reasons are two-fold: natural beauty and investment potential. Praia de Guajirú is one of the most stunning and unspoilt beaches in Northeast Brazil and lies in an area of great natural beauty. This part of Brazil enjoys a year round pleasant climate and is the sunniest place in the entire country.
Northeast Brazil ranks as the Brazilians’ favourite holiday destination and Praia de Guajirú is one of the region’s best-kept secrets. Visited by well-to-do families from Fortaleza and Sao Paulo for decades, Praia de Guajirú is now gradually being discovered by foreigners and more Brazilians. There is, however currently little purpose-built holiday resorts. We believe that Praia de Guajirú has huge potential for growth as a holiday destination and represents an exceptional investment opportunity for investors who get in early to benefit from the rise in interest in the area among Brazilians.
In addition, the area has huge potential due to the development of the Pecém Port which is undergoing major expansion and is set to be one of Brazil’s largest import-export centers. Click here to read more about Pecém Port.
- 3. Where is the nearest airport to The Coral in Northeast Brazil?
The nearest International airport is Pinto Martins Airport just outside Fortaleza, 1 hour and 20 minutes from the resort. The airport has an excellent choice of domestic flights with connections to the main airports in Brazil plus a growing range of international flights. Direct flights are available to Argentina, Cape Verde, Colombia, France, Germany, Italy, Portugal and the US meaning this Brazil real estate investment has excellent communications.
- 4. What is the flight time between Fortaleza and Europe?
Flights to Fortaleza from Portugal take around 7 hours while flights to Fortaleza from Germany and Italy are just over 9 hours long.
- 5. How long is the flight time between Fortaleza and the US?
Flights to Miami from Fortaleza take about 8 hours.
- 6. What are the flight routes from the Middle East?
Dubai connects with Frankfurt/Milan/Lisbon to fly to Fortaleza. There is also a direct flight to Sao Paulo that connects with Fortaleza.
- 7. How do I get to The Coral resort?
The best and quickest way to reach The Coral resort is to hire a car in Fortaleza (car hire is available at the airport) and drive to the resort. If you take a BRIC Group inspection trip we will provide a chauffeur driven service throughout your stay.
- 8. How far is The Coral from Fortaleza Airport and the city of Fortaleza?
The Coral resort is located 130 km from the state capital, Fortaleza, a 1 hour 20 minute drive.
- 9. How far is the nearest doctor/ hospital to The Coral?
Local doctors and medical centres are available in nearby towns. The nearest hospital is in Trairi, 10km from the resort and 24h emergency services are available at Paraipaba. The main hospitals are located in Fortaleza, 1 hour 20 minutes’ drive from The Coral.
- 10. Is this part of Brazil safe?
This is one of the safest parts in Brazil with an almost zero crime rate and security is high.
- 11. Who buys in the area?
Brazilians, both from nearby Fortaleza and further afield from large cities such as Sao Paulo looking for luxury second homes. This destination for holidays in Northeast Brazil is also increasingly on the radar of international investors alerted to the area’s potential for Brazil property investment.
Pecem Port, currently undergoing a 10-year expansion project and with an acute undersupply of quality housing, is 40 minutes’ drive from Praia de Guajirú. Managers and engineers employed at Pecem Port will be seeking high-end accommodation in the area, a fact that enhances the potential for return from The Coral resort.
- 12. What are the main attractions in this part of Northeast Brazil?
Undoubtedly The Coral resort’s star attractions are its stunning natural surroundings. This part of the coastline is one of the least developed in Northeast Brazil with miles of pristine beaches backed by tropical palms and sand dunes while the warm Atlantic waters offer safe bathing in the lagoons formed by offshore coral reefs and excellent wind and kitesurf opportunities.
The Coral Northeast Brazil is near to the resorts of Flecheiras and Mundau, also tranquil spots with opportunities for buggy rides on the dunes, riverboat trips and trekking in the scenic countryside inland. The local gastronomy in this part of Northeast Brazil is another highlight with fresh fish and seafood taking pride of place on the menu.
Fortaleza, just 1 hour 20 minutes away, has plenty to offer the tourist -busy urban beaches, excellent shopping opportunities with vast shopping malls equal to those found in the US and Dubai, historic monuments, museums, theatres and great restaurants. The third largest aquarium in the world is due to open in the city in 2017.
The state of Ceará is known for its excellent year-round climate – Fortaleza is nicknamed Sunshine City as it receives the most hours of sunshine of any city in Brazil – and the hospitality of the locals whose warm welcome is famous throughout the country.
- 13. How far is Fortaleza from Natal?
Fortaleza is 531km (331 miles) from Natal–around 6 hours’ journey by car and under 1 hour by air.
- 14. How far is Fortaleza from Rio de Janeiro?
Fortaleza is 2,602km (1,626 miles) from Rio de Janeiro. Regular flights connect Fortaleza Airport with Rio de Janeiro Airport and the journey takes around 2 hours 40 minutes.
- 15. How far is Fortaleza from Sao Paulo?
Fortaleza is 2,941km (1,838 miles) from Sao Paulo. Regular flights connect Fortaleza Airport with Sao Paulo Airport and the journey takes just over 3 hours.
- 16. What is the weather in Fortaleza?
The state of Ceará enjoys some of the best weather in Brazil. Temperatures are warm year-round and average temperatures range between 26 and 32 degrees Celsius (79 to 90 degrees Fahrenheit). A pleasant ocean breeze tempers the heat and this is the part of Brazil with the highest number of sunshine hours a year. We believe that The Coral resort enjoys possibly the best weather in Brazil.
The Coral resort
- 1. Where is The Coral resort exactly?
The Google Earth coordinates for The Coral are -3.263036, -39.220176. On Google Earth, you can also see the resort’s contours and elevations (place your mouse on the exact spot you’re interested in to see the elevation).
- 2. Can investors at The Coral resort only buy land?
Currently, The Coral offers a choice of property investment in Brazil through the purchase of land plots to land bank or to build a luxury villa for your own use and/or holiday rentals. These plots form the main part of the resort, which will also include apartments, a hotel and a beach club as well as sporting and leisure facilities. Apartments are currently not offered for purchase.
- 3. How many plots are available at The Coral?
The Coral resort comprises 700 building plots.
- 4. How big are the plots?
Plot sizes at The Coral resort range from 397.5 square metres to 900 square metres (4,279 to 9,687 square feet). The beachfront plots measure 450 square metres (4,844 square feet). It is possible to purchase adjoining plots to create one larger plot.
- 5. How much do the plots cost?
Prices for plots at The Coral resort start at US$30,122 and rise to US$180,000. Actual prices depend on the location of each plot; the most expensive are those with a frontline beach position, prime location plots that represent excellent value in Brazil real estate investment terms.
- 6. Do The Coral villa plots come with building permission?
The plots being offered by BRIC Group have building consent to build on each plot. Building licences are granted upon the presentation of the intended villa plans to build and are easy to obtain. BRIC Group can take care of this whole process for you.
- 7. How much of the plot can be built on?
Up to 50% of the plot size is permitted to be built on to build a luxury villa at The Coral.
- 8. How big can The Coral villas be?
The maximum size for villas at The Coral is 50 per cent of the plot size.
- 9. What size are The Coral villas?
This depends on the villa design you choose. The Rustic Villa Collection offers two options – two bedrooms of 120 sq m and three bedrooms of 147 sq m; the Modern Villa Collection has two bedrooms of 134 sq m and three bedrooms of 174 sq m; and the Brazilian Villa Collection includes three villas, a two bedroom of 132 sq m, a three bedroom of 189 sq m and a four bedroom of 210 sq m.
- 10. How many floors can a villa at The Coral resort have?
The maximum permitted height at The Coral is two floors. Some villa options have one floor only.
- 11. How long does it take to build a villa at The Coral resort?
It takes approximately 8-9 months to complete the construction of a luxury villa depending on the villa style chosen.
- 12. How much of The Coral resort will be developed?
One of the biggest attractions of The Coral Northeast Brazil is its abundance of conservation of the natural surroundings. Just 50 per cent of the entire resort has been allocated for construction. This low-density build leaves the other half of the 1 million square metre site as designated green areas, allowing residents and holidaymakers maximum enjoyment of the area’s stunning natural beauty.
- 13. What facilities will be onsite at The Coral resort?
As the first 5-star residential resort in this part of Northeast Brazil, The Coral will provide a wide range of facilities and amenities for residents and holidaymakers including an exclusive beach club, well-being centre, concierge service, boutique hotel, sports facilities, fitness complex, wind and kite surf school and a number of restaurants and retail conveniences. You can read about the amenities here
- 14. Has construction started on the site?
Yes, construction work at The Coral resort started in early 2014 and has since made good progress. All infrastructure installations (utility supplies and roads) are in place and building work is underway on the beach club and villas. You can check our regular updates on building work progress here.
- 15. How long has The Coral resort been going for?
Building work started in early 2014 and is making good progress and to schedule. All the installations for infrastructure such as roads connecting the different areas of the resort and utility supplies are finished and construction of the beach club and numerous private villas is underway. Regular updates on the latest building work progress can be found here.
- 16. How can I keep up with construction progress at The Coral resort?
At BRIC Group we believe in keeping investors fully informed on their Brazil property investment and to this end, we send out regular progress updates. You can sign up for your copy here
- 17. How can I see pictures of the building work at The Coral resort?
To see visual progress on your Brazil real estate investment you can view a monthly image gallery with updated images and sign up for our regular progress updates here
- 18. How long will The Coral resort take to be finished?
The construction of The Coral resort will be carried out in phases. Estimate time frames include:
- Entire site infrastructure - completion est. Jul 2017
- Show home construction – completed Dec 2016
- Beach club construction - completion est. Dec 2017
- Apartment construction - launch est. mid-2017
- Hotel and onsite facilities – launch est. end-2017
- Lagoon clubhouse – 2018
For a full breakdown and details of the site construction please request The Coral Development Milestones brochure.
- 19. Are utilities – electricity, water and sewage etc. - available on site?
An electricity supply runs throughout the site. Each of The Coral villas will be equipped with its own well and septic tank.
- 20. What about security at The Coral resort?
The Coral is located in a very safe part of Brazil. Nevertheless, The Coral incorporates several security features for extra peace of mind. These include: 24- hour security guard at the resort entrance; all people and vehicles entering the resort will be checked in and out; and state-of-the-art alarm systems connect all villas with the security post and local police department.
- 21. Which company is building the villas and the onsite facilities at The Coral Northeast Brazil?
For the construction of The Coral resort, BRIC Group has selected CMB Engenharia Ltda, a building and engineering firm based in Fortaleza with a well established reputation in the area for quality construction. Their track record encompasses a wide range of building projects including residential, commercial and industrial developments.
- 22. Can I view The Coral resort before I buy?
Yes, you can and at BRIC Group we encourage buyers at The Coral to come to Northeast Brazil and see the resort and construction work for themselves. Subsidised inspection trips are available for all interested buyers. Please contact us for details.
- 23. Have you already sold plots at The Coral resort to clients?
Yes, interest in this Brazilian property investment is strong from both Brazilian and international investors and around 50-60% of plots have already been sold on the resort. As well as plot sales, 30 per cent of buyers have already paid deposits to build their villas at The Coral.
- 24. Are references about BRIC Group available?
Yes, for those clients who are ready to buy, we are happy to put you in touch with clients who have bought BRIC Group products to share their experience of Brazilian property investment with you.
- 25. Who are going to be running/owning the commercial and retail outlets onsite at The Coral Northeast Brazil?
BRIC Group owns all commercial and retail outlets on The Coral resort. These will be rented out to businesses who will offer services (e.g. convenience stores, bakery, pharmacy and bank services) to The Coral residents and holidaymakers.
- 26. How will The Coral be maintained?
Maintenance and general upkeep of The Coral resort will be the responsibility of the Homeowners’ Association. A monthly management fee will be charged for this service.
Property investment returns available at The Coral
- 1. What are the pros and cons of each type of property investment at The Coral?
BRIC Group proposes different investment scenarios at The Coral resort, all with proven sustainability and returns. The one you choose will depend on how much you wish to invest, your investment objectives and what you intend to do with your investment. Your personal consultant will explain each option to you to ensure you fully understand the implications of each.
- 2. What can I do with my finished villa at The Coral?
You have two options: sell it to the Brazilian property market or keep it for your own personal use and/or let it to the local holiday market. Either option has the potential for high return from your Brazilian real estate investment.
- 3. Can I use my villa at The Coral resort for my own personal use?
Yes, of course and we firmly believe that the combination of the beachfront location and the 5-star onsite amenities at The Coral will provide you and your family and friends with holidays of a lifetime.
- 4. Who will manage my villa at The Coral for me?
Boutique Hotel Brasil Ltda. - the property management company (based onsite) will take care of all the aspects involved in property management – finding rental clients, booking stays and collecting payment for these, ensuring villas are cleaned and maintained, taking care of any problems or issues that may arise during a holiday let, etc. Full details of this will be provided to you.
- 5. How have you calculated the return for each scenario for investment at The Coral resort?
As with all our international property investment products, we have carried out comprehensive due diligence and research into The Coral investment scenarios. Our calculations on the returns you can expect from each of the investment scenarios are based on comparisons with similar local products and current market trends and prices (both for resale and holiday lets). These calculations allow us to give realistic projections on expected returns from this Brazil real estate investment. Figures are available for each villa type and each investment scenario on request.
- 6. How have you calculated the yearly turnover for holiday rentals at The Coral resort?
We have compared similar properties offering similar onsite facilities at local holiday resorts in Northeast Brazil. Exact rental figures are available in the Investment Summary calculations available for each villa design at The Coral.
- 7. What if a tenant doesn’t pay?
Short-term and holiday lets in Brazil are paid for upfront so there’s no risk of non-payment. In the case of long-term tenants, we charge 5 months deposit to cover such non-payment periods. Brazilian rental law provides several safeguards for landlords. The most common are a guarantor for the tenant or contracting payment insurance. Both options offer guarantee of payment should the tenant default. In addition, under Brazilian law, if a tenant falls behind with payment for a month, they are immediately subject to eviction procedures and must pay within 15 days or be evicted.
Equipment and fittings of The Coral villas
- 1. What fittings do villas at The Coral resort include?
The build design includes a sink and countertops for the kitchen and a wash basin unit in all bathrooms.
- 2. Does my villa at The Coral resort come with a pool?
All villa designs contemplate a swimming pool within individual villa plots. The price for a pool is not included in the villa build price. Pool prices vary depending on the chosen villa. We can provide full details upon request.
- 3. Can you arrange garden landscaping for me?
Yes, we offer two landscaping packages for clients – basic and premium. You also have the option to buy a perimeter fence for your plot. Prices are available on request.
- 4. What about air conditioning?
The design for all villas at The Coral resort incorporates energy-efficient measures to ensure homes are heated and cooled effectively and economically. In addition, pre-installation for air conditioning units is included in the build price.
- 5. Does The Coral villa build include kitchen fittings?
No. The build only includes the kitchen sink and countertops. Kitchen units are available in our cabinet packages of which we have three options – gold, silver and bronze. White goods (washing machine, dishwasher, cooking hob, oven etc.) are not included in the price. As in all countries, prices for these in Brazil vary depending on the quality of the appliance and the brand. All are readily available for purchase in Fortaleza.
- 6. Do you offer furniture packs?
Yes, we will offer furniture packages for all villas. The details of the packs are currently being compiled and will be comprehensive. They will offer a way to furnish your Brazilian property easily and stylishly.
- 7. What about utilities – electricity, telephone and internet connections?
Information and assistance will be provided by the onsite property management company to all owners about contracting utility supplies.
Running costs of owning a property at The Coral
- 1. What will be the costs associated with owning a villa at The Coral resort?
Owners will have to pay the following costs:
- Monthly quotas for the Homeowners’ Association (estimated around US$70 a month for a 450 sq m plot)
- Marketing costs to let your property for rental (optional)
- Property management company costs (optional)
- Monthly utility (electricity, phone and internet etc.) costs.
- 2. How much will the Homeowners’ Association cost?
The HOA cost is expected to be around US$70 a month for a 450 sq m plot. This goes towards the maintenance and upkeep of the resort including 24 hour security, internal transport, upkeep and cleaning of gardens and communal areas and access to the beach club to name a few.
- 3. How much will the marketing costs be to advertise my property for rental?
Marketing costs are estimated to be 15% of the rental income.
- 4. How much does property management cost for villas at The Coral?
Expect to pay around 25 per cent of rental income to the property management company.
- 5. How much does garden and pool maintenance cost?
For pool and garden maintenance you can expect to pay an estimated R$35 per hour.
- 6. Do I have to pay Homeowners’ Association costs if I don’t build a villa?
Yes, because Homeowners’ Association fees are used to maintain the resort.
- 7. How much do utilities cost a month?
As a rough idea, expect to pay the following:
Cable TV - from R$80
Internet – from R$70
Electricity prices will depend on consumption.