- Brazil Real Estate Investments -

Pernambuco

2011-03-10T16:40:00.000-03:00

Pernambuco

Brazil’s Fastest Growing State
2011 by admin

The state of Pernambuco forms part of a cluster of regions of north eastern Brazil which continue to remain the most popular for foreign real estate investors.   After decades of what was commonplace migration to the wealthier regions of the south, thriving economies supported by better employment opportunities, higher wages, ever rising domestic / international trade links and improving infrastructure all make investing in these marketplaces attractive. Additionally, states such as Pernambuco are popular for overseas buyers due to their closer proximity to both the USA and Europe and the fact that real estate values, generally speaking, are cheaper – particularly when compared to the south of Brazil.
Pernambuco is notably appealable for a number of reasons including:
·         its 116 miles of beach – debated as the most pristine in Brazil;
·         having one of the most metropolitan cities of the north east, Recife (often referred to as the ‘Venice of Brazil’) which will host some of the World Cup 2014 games;
·         an increasingly important economy (largely driven by the service sector with other important industries gaining prominence);
·         having an uniquely located port that acts as fundamental driver of the regions petroleum / offshore gas and shipbuilding industries (located in what has been termed a ‘golden triangle’ of proximity to the Gulf of Mexico, the western coast of Africa and the ‘pre-salt’ petroleum region of Brazil’s south east);
·         higher GDP per capita levels (in Recife this increased from R$ 4,328 in 2002 to R$ 14,485 in 2008).
The state was barely effected by the global economic crisis, during which over R$ 842 million of infrastructural projects were commenced and its GDP growth level remained superior in comparison to the rest of the country (between January and November 2010, the state went on to grow by 9.4 percent – the highest level in Brazil). Some major investments include the development of the Atlântico Sul shipyard, the Suape petrochemical plant and the Abreu e Lima refinery as well as the doubling of the BR-101 highway, the Trans-Nordestina railway and the São Francisco river diversion. The government have also increased tax incentives in order to spread development along the coast and encourage companies to establish or expand inland.
According to the Association of Real Estate Companies of Pernambuco (PE-Ademi), consumer confidence to buy property has reached unprecedented levels largely fuelled by rising population levels; greater employment opportunities; improving wages and housing credit – a pattern mirrored in the majority other regions of Brazil. 2010 witnessed the best sales figures in 15 years in the region and, in Recife, the PE-Ademi pointed to the maintained popularity of apartment buildings with 8,407 sold in 2010 compared to 5,484 in 2010 – although it also expected to see a slowdown in 2010 as bank interest rates are expected to rise along with implementation of other national anti-inflationary measures.
In terms of presence of other major industries some of the major poles include São Francisco region for a range of tropical fruits; Araripe and the Sertão for gypsum plaster and other agriculture (particularly sheep and goat farming); Pajeú for poultry; Itaparica for fish; Moxotó for honey; the Agreste Setentrional for textiles; the Agreste Meridional for livestock and milk and the Mata (north and south) for sugarcane. In the capital, whilst the service sector largely dominates the economy, the Porto Digital (‘Digital Port’) area is now world renowned as an information technology hub attracting investment from Japan, China, the US and Europe – many major software manufacturing companies now have headquarters here (including IBM, Microsoft, Motorola, Samsung, Dell and Sun Microsystems). Other important commercial activity in Recife includes food production, retail and logistics and medicine (the city has the second largest medical centre in Brazil).
Tourism levels are expected to continue to grow resulting in 13 new hotel projects being approved by the EMPETUR (the Pernambuco Tourism Company) which – just in the metropolitan region of Recife – will see the amount of beds increasing from 32,000 to 65,000 by 2014. In addition to the expansion of the port of Recife to allow more cruise ships to be able to dock, the Guararapes International airport will expand to be able to handle a passenger capacity of 7.5 million annually by the same year (currently 5 million). At the start of 2011, it was announced that the ‘Arena Pernambuco’ in the São Lourenço da Mata region of Metropolitan Recife will receive a R$ 400 million Brazilian Development Bank (BNDES) loan which enable its capacity to stretch to over 46,000 in time for the World Cup 2014.
As with many regions of the north east, poverty divides do remain noticeable and crime does still remain an issue – largely fuelled by the drug trafficking industry.   Nevertheless, encouraging signs have been noticed as a result of state sponsored programmes such as ‘Pacto Pela Vida’ (‘Pact for Life’) which – according to local government statistics – has seen the state homicide level decrease by 28 percent between 2006 and 2010 (40 percent in the metropolitan region of Recife).
For futher informations please get in touch.

Regards,

Jose Gualberto.

Getting Smart!

2011-03-09T16:06:00.001-03:00

Pepsi Company and Madonna have recently invested in one of Brazil’s fastest growing markets - Join them today in this unique LOW ENTRY INVESTMENT and profit from Brazils booming economy.

Low entry investment with interest free finance over 60 months - Low monthly payments only $ 533 per month NO DOWM PAY PAYMENT

Own a ultra modern high yielding freehold coconut plantation in Brazil and generate an estimated 20 year + net monthly income of $ 11.000 once the trees have matured {36 month } and start producing.

What’s included ?

I hectare freehold plot 10.000 m2 in the North East of Brazil one of the fastest growing regions .

Coconut plantation plots will form part part of a rural residential touristic complex ,the infrastructure the complex will offer will add value to the plantation plots.

250 plants

Drip irrigation system

3 year intensive crop care during the growing period

Modern management methods in par with international standard

Prices fixed in $ with no down payment and interest free finance

Managed hands free investment

Only a few plots now remain under this investment CONTACT US TODAY for further information

Move over Gatorade and Vitamin Water. There is competition in the beverage case and the Material Girl is one of the first to hop on the newest hydration bandwagon of Brazilian coconut water.

Coconut water is a wildly popular new drink that has recently hit stores all across the country like Whole Foods and other national grocery store chains.

The New York Post just reported that Madonna is investing $1.5 million in one of the largest coconut water manufacturers in the country, Vita Coco. Other celebrities like actor Matthew McConaughey and singer Anthony Kiedis of the Red Hot Chili Peppers are also rumored to soon be lending their cash to help make coconut water more mainstream.

And it’s no wonder. Coconut water is quick becoming a favorite among yoga practitioners, fitness enthusiasts and those just looking for a nutritious way to stay hydrated.

The agreement is the most recent step in PepsiCo’s strategic transformation of its beverage portfolio and marks the company’s entry into the fast-growing market for coconut water, a source of natural hydration popular in Brazil and dozens of other countries.

Amacoco makes and sells Brazil’s top-selling coconut water brands, Kero Coco and Trop Coco, which are highly regarded by consumers as healthy, refreshing hydration drinks. Together they account for the bulk of packaged coconut water sales in the country, making PepsiCo the category leader.

Opening a Bank Account in Brazil

2011-02-25T21:31:00.000-03:00

Banking & Opening a Bank Account in Brazil

Share on Facebook

Tweet this!Information on opening a Brazilian bank account - what documents to provide - the credit and debit cards, payment methods, cheques and more.

The Brazilian banking system offers a substantial range of services for both private individuals and companies. Banking rules are strictly enforced, and all banking business is closely monitored by the banks themselves and by the Central Bank of Brazil (Banco Central do Brasil).

In addition to the extensive branch network of the major retail banks, many of which have self-service ATM halls, most services available at the bank itself are also available via Internet banking.

Brazilian banks offer current accounts, savings and investment accounts, credit and debit card services, personal loans and overdrafts, and in some cases, foreign exchange services. Local banks will also set up standing orders, accept payment of utility bills and local, state and federal taxes. They also accept instalment payment books (carnê). Instalment books are issued in stores if a person doesn't have a credit card and wishes to pay in several instalments. The instalments are payable either in the store itself or through the banking system.

Types of Account

Current accounts (conta corrente) usually entitle the account holder to a cheque book and/or debit card. These accounts are normally non interest-bearing.

Savings accounts (conta de poupança) pay monthly interest on average daily balances for the month. This rate is currently 0.5 percent over the basic reference rate, (Taxa Referencial - TR). Interest earned on these accounts is tax-free.

Today, many banks combine these two accounts into an investment account (conta de investimento). Deposits are automatically routed to the savings account, and transferred to the current account to cover cheques, debit card payments and cash withdrawals. These accounts are also used for investments in funds, with all investments and redemptions transiting through the account.

Overdrafts (cheque especial) in Brazil are normally by arrangement and subject to the proper credit analysis by the bank. Usually, on opening an account, the bank may make such a credit line available. Interest rates on such facilities are very high.

A cheaper alternative is the personal loan (empréstimo pessoal), repayable in up to 24 or 36 instalments, depending on the bank. Competition is strong and rates vary from bank to bank.

Opening a Bank Account

To open a retail bank account, the following documents are required:

A valid identity document. In the case of a foreigner resident in Brazil, this will mean their foreigner's identity card (Cédula de Identidade para Estrangeiro - CIE) which contains the Registro National De Estrangeiro (RNE)

Individual Taxpayer’s number (Cadastro de Pessoa Física - CPF, also referred to as Cadastro Individual de Contribuintes - CIC)

Proof of domicile (such as a utility bill in the name of the person opening the account)

To obtain the CPF, it is necessary to fill out the application form at any Post Office, branch of Banco do Brasil or branch of the Caixa Econômica Federal and present the documentation required (usually the original or a certified copy of the RNE). There is a small fee. The applicant will receive a counterfoil with a code number. Thereafter, the applicant will be notified to appear at a unit of the Federal Revenue Service and present their documents and the counterfoil in order to obtain their definitive CPF.

In addition, banks may ask for proof of earnings/income, where a salary payment account (conta salário) is to be opened. In this case a valid payslip is enough. The latter is commonly referred to in São Paulo as contra-cheque or hollerith, but local variations of the name exist around Brazil. A conta salário only differs from a normal current account in that the holder of the account may be entitled to a wider range of benefits, for example lower fees on banking transactions.

The bank may also request and verify personal and/or employer references, including valid telephone numbers. Additional information requested may include credit card and/or store card numbers and/or income tax declaration, at the bank’s discretion.

Some banks currently allow accounts to be provisionally opened online, with subsequent presentation of the necessary documentation at the branch of choice.

Using a Brazilian Bank Account

Payments in Brazil are often made with credit or debit cards. International credit cards are widely accepted, although local cash withdrawal services may be restricted in certain cases.

In spite of the high degree of banking automation in Brazil, and the possibility of paying most utility bills online, many Brazilians still pay their bills at the cashier in their local bank. Therefore, be prepared for large queues at cash tills.

Banking is not free in Brazil. Most banks charge a monthly all-in fee for basic services, including a cheque book containing 20 cheques. Depending on the chosen package of services and account balances, banks award points that can be used to defray charges.

Cheque books are still widely used, especially by companies, but are being increasingly replaced by debit cards, especially for retail purchases, since many stores simply no longer accept cheques. Issuing a cheque without sufficient funds is a crime, subject to severe administrative and legal sanctions.

In many bank branches there are cheque dispensers. These function like an ATM, but they issue cheques, usually in sheets containing four cheques and are for those who don't need or want a conventional cheque book. Customers can print out as many cheques as they need, when they need them, subject to their arrangements with the bank. This cheques-on-demand option actually saves banks money that would otherwise be spent in the printing, storage and distribution of conventional cheque books. The number of cheques to which account holders are entitled will be predetermined in the monthly tariff negotiated with the bank.

Opening hours

Most banks are open Monday to Friday from 10:00 to 16:00.

Foreign Currency

The purchase and sale of foreign currency is still one of the most tightly controlled aspects of banking in Brazil. Purchase of foreign currency using a credit card is not permitted. Foreign visitors can normally sell foreign currency on presentation of a valid passport, especially at bank branches located in the major airports. Most bank branches generally only deal in foreign currency on behalf of their clients, and not all branches provide foreign exchange facilities. Foreign currency may also be exchanged at one of the many exchange bureaux (casas de câmbio). The maximum amount of foreign currency that can be brought through customs and into the country is the equivalent of 10,000 reais.

Special situations

Non-resident foreigners in Brazil may hold local currency accounts in Brazil, subject to Heading 1, Chapter 13, Section 1 of the International Capital and Foreign Exchange Market Regulations (Regulamento do Mercado de Câmbio e Capitais Internacionais) of the Central Bank of Brazil.

Foreigners who are temporarily resident in Brazil can hold foreign currency accounts, subject to Heading 1, Chapter 14, Section 7 of the International Capital and Foreign Exchange Market Regulations (Regulamento do Mercado de Câmbio e Capitais Internacionais) of the Central Bank of Brazil.

Funds for investment are registered with the Central Bank of Brazil and in the case of investment funds, with the Brazilian Securities Commission (Comissão de Valores Mobiliários - CVM). In the case of funds entering Brazil in order to open a company, for example, the initial capital is registered with the Department for Foreign Capital and Control and Registration (Fiscalização e Registro de Capitais Estrangeiros - FIRCE). A certificate is issued, which entitles the company to remit future profits and/or dividends and, if necessary, repatriate capital.

For further information from Banco Central do Brasil on the International Capital and Foreign Exchange Search for Market Regulations

In both cases, enquiries should be made directly to the Central Bank.

Lost or Stolen Bank Cards

Any loss or theft should be reported immediately to the bank/credit card company to stop the cheques and/or cancel the card. It is also necessary to go to the nearest police station (delegacia de polícia) to file a formal police report (boletim de ocorrência - BO) as soon as possible.

In the state of São Paulo, lost or stolen documents and cards can be registered on the São Paulo government website. A copy of this registration will need to be shown to the bank. In the event of loss or theft of cheque books and personal documents, call the credit protection agency SERASA.

SERASA

Tel: 11 33 SERASA or (11) 3373 7272

Main Brazilian Banks

Private banks:

Banco Itaú

Bradesco

Santander

Unibanco

The two largest state-owned banks are:

Banco do Brasil

Caixa

The Central Bank of Brazil:

Banco Central do Brasil

Brazilian Portuguese Banking Terminology Guide

English Brazilian Portuguese

ATM/cash dispenser Caixa eletrônica

Bank Banco

Bank account /Conta bancária

Bank book /Caderneta

Bank charges /Taxas bancárias

Bank draft /Saque bancário

Bank loan /Empréstimo bancário

Bank manager /Gerente de banco

Bank note /Cédula bancária

Bank payment slip /Ficha de compensação

Bank rate /Taxa bancária

Bank statement /Extrato bancário

Bank transfer /Transferência bancária

Bankers cheque /Cheque administrativo

Bounce a cheque/ Devolver um cheque

Bounced cheque/ Cheque devolvido

Cash withdrawal /Saque/retirada em dinheiro

Cheque /Cheque

Cheque book /Talão de cheques

Corporate/company account Conta pessoa jurídica

Credit balance /Saldo credor

Credit card /Cartão de crédito

Credit facilities /Linhas de crédito

Credit card invoice /Fatura de cartão de crédito

Current account /Conta corrente

Debit /Débito

Debit balance /Saldo devedor

Deposit/ Depósito

Deposit account /Conta de depósitos

Deposit slip /Ficha de depósito

Direct debit /Débito direto

Drawee's receipt /Recibo de sacado

Exchange Bureaux /Casa de câmbio

Exchange rate /Taxa de câmbio/taxa cambial

Fixed rate /Taxa fixa

Individual/personal account Conta pessoa física

Interest rate /Taxa de juros

Investment bank Banco de investimentos

Joint accounts /Contas conjuntas

Multiple bank /Banco múltiplo

Non-resident account/ Conta de não residente

Overdraft account Cheque especial/conta garantida

Payment slip /Ficha de pagamento

Private bank /Banco privado

Revolving Overdraft /Conta garantida rotativa

Salary account Conta salário

Savings account /Conta poupança/caderneta de poupança

Securities/ Títulos e valores mobilários

Share /Ação

Shareholder/ Acionista

Signature card/ Cartão de assinaturas

Standing order /Débito direto

Take out a mortgage/ Contratar um empréstimo hipotecário

Travellers cheques / Cheques de viagem

Variable rate /Taxa variável / flutuante

Related Information search for:

Information from the Brazil Ministry of Finance on the CPF

AngloINFO INFOrmation page, The CPF number in Brazil

Information from the Banco Central do Brasil on different payment methods in Brazil.

Information from the Banco Central do Brasil on Brazilian banknotes and coins.

Interview

2011-02-09T13:36:00.000-02:00

Interview with the Inter-American Development Bank (IADB)

February 8th, 2011 by admin

Please see below a recorded interview we undertook with Bruno Saraiva, a Brazilian economist and sociologist at the Inter-American Development Bank (IADB). We discussed a range of issues related to his work in Brazil including short / medium / long term growth prospects; Brazil’s positioning on the global stage; its relationship with other economies both developed and developing; impending challenges; housing policy; dealing with the issue of favelas; the new government’s understanding of the needs of poorer sections of society; other infrastructural projects being undertaken by the IADB and the country’s relatively low positioning on the 2011 Index of Economic Freedom amongst other subjects…

Interview with Bruno Saraiva of the Inter-American Development Bank - Pa...

2011-02-09T13:35:00.000-02:00

Interview with Bruno Saraiva of the Inter-American Development Bank - Pa...

2011-02-09T13:34:00.001-02:00

Interview with Bruno Saraiva of the Inter-American Development Bank - Pa...

2011-02-09T13:34:00.000-02:00

International Holocaust Memorial Day

2011-01-27T22:16:00.000-02:00

January / February 2011 Brazil

2011-01-26T20:47:00.000-02:00

January / February 2011 Brazil Real Estate & Land Investor Newsletter

January 26th, 2011 by admin

As the country adjusts to a revitalised Workers Party cabinet, newly selected president of Brazil’s Central Bank – Alexandre Tombini – stated that he will not allow housing credit to reach a ‘bubble like proportions as was similar to many other nations of the world.’ President of the Brazilian Bank Federation Fábio Barbosa – whilst pointing to expectations of a 40 percent growth in housing credit in 2011 (after a 50 percent growth in 2010) – further stated there was very little chance of a bubble due to net mortgage finance levels forming just under 4 percent of GDP.
The country’s low cost housing sector confronted renewed waves of criticism. As a result of what was a horrific start to the new year, floods in the state of Rio de Janeiro killed over 800 and displaced 1000’s of families who lived in ramshackle buildings, often on irregular and highly prone land. The catastrophe has ignited serious political and economic debate with even the new President herself questioning: “when there aren’t housing policies, where are people who earn no more than twice the minimum wage going to live?” The ‘Minha Casa, Minha Vida’ housing programme also came under fire with one of the initial projects in Bahia receiving a torrent of negative press as a result of a range of problems emerging including arrears; abandoned apartments; squatting and illegal rental agreements / sales.
In other news, the BNDES (Brazil’s Development Bank) reported a 23 percent increase (by R$ 168.4 billion) in disbursements made when comparing 2010 to 2009 with a significant proportion allocated to spending on the development of industry (53 percent – including the growth of the country’s petroleum sector); infrastructure (31 percent) and commerce / services (16 percent).

January 2011 Factfile

This month’s factfile shows general stable growth patterns across all real estate related statistics analysed. As the SELIC rate of interest was raised to 11.25 percent – one of the highest in the world – Dilma Rousseff and Central Bank heads announced plans to implement a regime of further inflationary control measures. A survey of leading analysts conducted by the ‘Focus’ organisation nevertheless still expects consumer prices to increase to 5.53 percent by the close of 2011 (above the current 4.5 percent target level). The survey also estimated a slowdown in GDP growth to 4.5 percent in both 2011 and 2012 (compared to 7 percent in 2010). According to the Getulio Vargas Foundation (FGV), the National Index of Construction Cost (INCC-M) rose 0.37 percent in January 2011, after increasing by 0.59 percent in December last year. In the last 12 months, the index recorded an increase of 7.42 percent.

My house, my life...

2011-01-19T21:24:00.000-02:00

Minha Casa, Minha Vida’ (‘My House, My Life’) Enters a New Era

January 18th, 2011 by admin

As it was announced that the initial ‘Minha Casa, Minha Vida’ (‘My House, My Life’) programme had failed to meet target levels of 1 million units by the close of 2010 (816,268 had been authorised), the Brazilian government has introduced a series of modifications with the aim of accelerating the construction of housing in a sector that remains considerably under- supplied.
In addition to the decision of extending the threshold of the industrial products tax (Imposto sobre Produtos Industrializados) and improvements to the social security finance contribution and social intergration programmes (Contribuição para o Financiamento da Seguridade Social / Programa de Integração Social) – a number of changes have been formally announced, amongst mixed reviews:

Construction on Unregulated Land

According to the Ministry of Cities, the resolution of allowing the development of real estate on land which is pending regulation is focused on speeding up the current slow moving completion times apparent in even the largest construction projects in the country. Furthermore, it has an added objective of enabling land which currently house favelas (urban slum communities) to be regenerated and modernised – particularly in the metropolitan regions.
The plans have provoked a series of discussions amongst real estate professionals with the main concern being related to the realism of undertaking such projects. In an interview with Construção Magazine, Geraldo de Paula Eduardo, executive director of housing APEOP (the São Paulo Association of Public Work Officials) debates: “the case of construction on non-regularised land will create more difficulties than what policy makers envisage – for example, how can delivered housing units be formally registered at the cartório [official localised property / land registration offices]?” There is also the risk that real estate that is built on unregulated land could be sold ‘under the table’. In the proposals, the Ministry of Cities has stated it is developing mechanisms that will facilitate the issue of official registration – although this is going through the initial legislative stages and no detailed clarification has been made.

Setting Maximum Limits on House Pricing

Another issue that has long been debated is with regards to the inflationary pressures on the construction industry placing pressure of sales prices. According to Inês Magalhães, national secretary of housing: “with the policy of valuing wage levels in line with house price ceilings, more families will have access to affordable housing.”
However, as a recent analysis undertaken by the Brazil Real Estate & Land Investment Guide demonstrates, the reality does not seem in line with the minister’s statement. As part of our business plan in conjunction with EXITUS Construction Brazil for the ‘Fez Tá Pronto’ low income housing development projects, we analysed 18 ‘Minha Casa, Minha Vida’ (MCMV) housing units on the market in the state of Rio de Janeiro (a region, according to the João Pinheiro Foundation, with one of the largest proportions of the housing deficit in Brazil) producing an average sales price of R$ 105,190. Putting these into the Caixa Econômica Federal (the public bank that administer the housing programme) simulator – a monthly payment for a low income housing unit (assuming the full MCMV subsidy is provided) will be R$ 541.73. Looking at wage levels, on the assumption that the majority would be working in basic skilled level jobs which – according to Law nº 5.627 enacted on 28th December 2009 – would produce a maximum salary of R$ 665.77, buying a property would not be a feasible option in terms of affordability (please feel free to email me at gbetto_ce@hotmail.com for more information on our research). According to José Carlos Martins, vice presidente of the CBIC (Câmara Brasileira da Indústria da Construção, the Brazilian Construction Industry’s Chamber of Commerce) in the Construção Magazine: “the situation has become inconsistent resulting in a significant loss in the purchasing power of low income real estate.”

Commercial real estate construction

Another prominent introduction is the allowance of commercial property development within MCMV projects. The aim of this is to create business activity within the condominiums which will help with ongoing maintenance costs whilst generating economic activity amongst local residents. According to Inês Magalhães: “we have had much difficulty in intensifying low income housing construction in centralised areas – this alteration will contribute to assisting this problem.”
The main criticism has been that most development companies are having enough difficulty making projects viable in the first place – adding the costs of developing commercial space would have to be incorporated into the final sales price which is already being pushed beyond the realms of the realistic affordability levels, as discussed above. José Carlos Molina, vice president of public housing Sinduscon-SP (the Union of Construction Industry, São Paulo) also stated to the Construção Magazine that: “despite being a good business opportunity, it is still unclear whether contractors will pay for these units or not – something that will only be clarified once the buildings are completed.”

Brazil House Prices.

2011-01-12T16:19:00.000-02:00

Brazil House Price Index Reaching Final Stages

January 11th, 2011

With the aim of bring further transparency into Brazil’s real estate market, a new index that will measure changes in property values by type, over time and across geographic regions is in its final stages – initially for commercial property in the country’s major cities but with wider objectives to move into the residential sector.
Developed by the Getúlio Vargas Foundation (a leading academic research institute in Brazil) in coordination with the Brazilian Association of Closed Pension Funds (Associação Brasileira de Entidades Fechadas de Previdência Complementar or ABRAPP), the ‘Index of Profitability of the Brazil Real Estate Market’; also known as ‘IBRI’ (Índice de Referência de Rentabilidade do Mercado Imobiliário Brasileiro); will contain regularly updated information on values, transaction levels, income and expenditure with the primary objective of better monitoring of Brazilian real estate assets – viewed as a natural progress as the industry continues its maturation process.
In terms of how the index has been compiled, according to coordinator of the project from the Getúlio Vargas Foundation Paulo Picchetti (in a previous interviewed undertaken with the Brazil Real Estate & Land Investment Guide): “the IBRI follows international standards for measuring the overall profitability of investments in commercial real estate [namely shopping centres, commercial offices, industrial units and garages amongst others]. In short, price appreciation is measured through the evaluations and the flow of revenue through rents / other income reported by the informants – during the process, we have:

Developed confidential relationships within Brazil’s commercial real estate industry in order to analyse historical performance (on a per state basis);
Converged the calculation formulas primarily used by the NCREIF (National Council for Real Estate Investment Fiduciaries) with those specific to Brazil’s commercial property sector;
Evaluated unsold commercial properties in the Brazilian marketplaces followed by the subsequent exploration of potential alternatives and their comparative advantages / disadvantages;
Ensured that well-defined governance structures are in place that will provide ongoing transparency and credibility to the indices;
Constructed a comprehensive database designed to increase information and understanding about the Brazilian commercial property industry combined with the accurate presentation of the various profitability indices.”

According to Carla Safady, coordinator of the technical commission of property investments from ABRAPP, the extension of the index to reach the residential sector will be a “natural progression” with Picchetti stating: “we are in the preliminary stages of creating an index for this sector and currently in the process of evaluating a wide range of potential methodologies – some of which will use the principles of the commercial index and will be dependent on its execution.” Brazil’s public banking institution, the Caixa Econômica Federal and Getúlio Vargas Foundation have also announced a partnership to mount a property valuation index (tentatively entitled ‘Índice de Valorização de Imóvel’ or ‘IVI’) although it has been stated that the project is in its infancy with no official launch date.
An article in construction magazine PINI showed that opinion amongst Brazil real estate specialists over the IBRI index remains divided. Celso Petrucci, chief economist at Secovi-SP (the Union of Housing, São Paulo) believes that increased transparency will serve to boost the attraction of investment from both a domestic and international perspective: “with the amount of equity built over the last few years the index will enable it to be possible to have a starting point for a more rational and well-measured investment culture.” He also highlights that the index involves the participation of serious companies – including Cyrela Commercial Properties, CB Richard Ellis, Colliers International, Jones Lang Lasalle, Banco Brascan and Banco Itaú amongst others – which serves to add further kudos. Radegaz Nasser Junior, vice president of institutional relations at IBAP (the Brazilian Institute of Evaluation and Engineering Skills), on the other hand, questions the index’s realism with the Brazilian real estate market arguing that the variations are too huge to be evaluated accurately, stating: “even the same type of properties located on the same street may differ by over a double due to the way they are owned amongst a variety of other factors.” He also moots the possibility of data being handled in accordance with the interests of companies that will integrate into the database of IBRI. In response, Mr Pichetti stated: ”we have studied how the international real estate market has measured the performance of its assets and adapted these methodologies to the national market;” with Safady adding “there is also an advisory board composed of a variety of industry players to minimize this risk.”

Brazil Real Estate & Land Investors 2011 Report

2011-01-05T22:53:00.000-02:00

by admin

Brazil Real Estate & Land Investors 2011 Report

Please click on the link above to access our annual report, aimed at giving a detailed examination into the prominent issues related to Brazil’s property and land investment climate for the year ahead (note you will have to be a free member of the site which can be done quickly and easily by clicking here).
So what’s in store for 2011? The majority of international investors continue to remain bullish about Brazil – an entirely justified perspective for many reasons including rising incomes, lower unemployment, an asian-driven commodity boom, gigantic oil discoveries, up and coming major sporting / high profile events, oil findings, a vigilant banking system to name a few. However, as with any inflationary market, business risks need to be taken into account – from a macro-economic perspective, examples include a highly valued currency that is continuing to lose international competiveness (whilst weighing down the trade-weighted exchange rate and boosting consumer costs); a growing current account deficit; low comparative international savings levels; the ever rising need to improve infrastructure as well as low comparative innovatory and education levels. In 2010, perhaps more than ever before, it has become clear that the key to Brazil’s continued success is for the nation to not become complacent and take advantage of the wave of ‘feel good factors’ that have been sweeping the country in recent years.
For the real estate and land investor – despite possible issues related to over-supply, rising mortgage finance costs and ownership – industry professionals within the country remain positive that, for at least the next few years, the housing market will remain buoyant. In terms of overseas interest, 2010 events such as the financial turmoil in the Eurozone and the repercussions of the credit crisis in countries such as the USA and the UK have made property / land investing in Brazil a challenge – particularly combined with the fact that real estate finance for foreigners is not available (bar some development finance programmes are offered by some constructors). Other issues commonly noted include excessive bureaucracy, title protection, exchange rate issues, obtaining a sufficiently valid investment visa and acquiring real estate related assets transparently in accordance with international legal standards.
Nevertheless, as these issues are unlikely to disappear any time soon, investors – including an increasing amount from other so-called ‘emerging’ nations such as China, India and South Korea – have been striving to work through the complex system. We believe that it is a task that is well worth undertaking considering the wealth of opportunities available in a country with such strong medium to long term growth prospects.
What follows takes both macro and micro based outlooks on factors facing the Brazilian real estate and land industry at the close of 2010.
Below is the section breakdown:

1. Welcome

2. Brazil Under the Rule of Dilma Rousseff

3. Brazil’s 2011 Economic Leadership Team

4. Brazil’s Involvement in the Currency Wars

5. Bringing Down Brazil’s National Interest Rate

6. Concerns Over Brazil’s Domestic Savings Levels

7. The Petrobras Phenomenon

8. The Brazil-China Relationship

9. House Price Inflation in Brazil

10. Brazil’s Real Estate Finance Market

11. Brazil’s Housing Deficit

12. Brazil State Housing Programme Examples

13. Brazil’s Construction Industry

14. Labour Supply in the Construction Industry

15. Low Income Housing / ‘Minha Casa, Minha Vida’

16. The Regeneration of Brazil’s Favelas (Urban Slums)

17. Brazil’s Low Sanitation Levels

18. Brazil’s Housing Industry Sustainability

19. Brazil’s Retail Real Estate Market

20. Brazil’s Other Infrastructural Challenges in 2011

21. Brazil’s Growth Acceleration Programme (PAC)

22. Relieving Congestion in Major Cities – Case Study: São Paulo

23. Brazil’s Demographic Movements

24. Removing Poverty in Brazil

25. Bolsa Família (Brazil’s Family Grant Programme)

26. Education in Brazil

27. Brazil’s Informal Economy

28. Bringing More Business Transparency into Brazil

Brazil Experts Discuss the 2011 Residential Property Market

2011-01-05T22:47:00.000-02:00

Brazil Experts Discuss the 2011 Residential Property Market

January 5th, 2011 by admin.

Shortly before the Christmas break, a group of Brazil’s leading real estate specialists – including construction company CEOs, engineer / architecture professionals and university professors* – convened to discuss the future of the market as the country enters 2011.
The general consensus was that the residential real estate market will grow in 2011 prompted by the pent up demand formed during the brief downturn of between 2007 and 2009. This pattern will be fuelled by increased mortgage credit availability, longer terms and lower interest rates as well as a healthy employment market, rising middle class purchasing power and increased international investment interest.
For high income earners, demand levels are expected to remain the same as with 2010. For middle-income earners, it was stated that the demand should remain broadly buoyant but some noted of a slight over supply in some regions. For the low income housing sector, demand is expected to be higher than in 2010 and 2009 – yet, whilst viewed as positive news for the industry as a whole, several concerns remain.
As it was announced by Caixa Econômica Federal that the allocation of the ‘Minha Casa, Minha Vida’ (‘My House, My Life’) project had not reached its target rate of 1 million housing units (875,000 units were allocated finance by the close of 2010) – debate was raised about the progress of many of projects currently underway. Some of the bottlenecks include the lack of defined price ceilings that work in line with affordability levels; off-putting bureaucracy levels; the issue of rising construction costs placing difficulties on making projects viable in line with the market and the lack of suitable land in urbanised areas close to employment, schools, health care and other essential amenities.
We discuss the above issues and more in detail in the 2011 Brazil Real Estate and Land Investor report.

Please click here to head direct to the introductory blog post and free download.

*Some of the prominent figures present included: Alessandro Olzon Vedrossi (Investor Relations, Brookfield Real Estate Incorporations); Alex Kenya Abiko (Professor at the Civil Engineering Department at the Polytechnic School at the University of São Paulo); Carlos Terepins (Even Constrution and Incorporations); Claudio Tavares de Alencar (Professor at the Civil Engineering Department at the Polytechnic School at the University of São Paulo); Daniel Citron (President of Tishman Speyer Brazil); Eliane Monetti (Professor at the Civil Engineering Department at the Polytechnic School at the University of São Paulo); Eric Cozza (Editorial Director of the Téchne Magazine); Fernando Bontorim Amato (Development Director at Y Takaoka); Marcelo Vespoli Takaoka (CEO of Y Takaoka); João da Rocha Lima Jr. (Associate Professor at the Civil Engineering Department at the Polytechnic School at the University of São Paulo and Director of ‘Urban Systems Brasil’); José Romeu Ferraz Neto (Director of RFM Constructions); Mario Rocha Neto (Operations Executive Officer at Gafisa); Roberto Aflalo Filho (CEO of Casa.com.br); Roberto Sampaio (Head of Engineering at HSBC Brazil) and Sergio Alfredo Rosa da Silva (Professor at the Civil Engineering Department at the Polytechnic School at the University of São Paulo).

How do the experts view Brazil?

2010-11-16T11:20:00.000-02:00

How do the experts view Brazil?

Most investors are intrigued by Brazil currently, however, is this not "The country of the future and always will be"? Or is now the time when Brazil is grasping the opportunity that this very unique country offers? What are the experts saying? In their latest report on Brazil (September 2010), Ernst & Young make the following comments:

MACRO ECONOMY
"Brazil...soon to be the fourth largest economy in the world"
"Brazil is well positioned as a future powerhouse"

HOUSING MARKET
"Observers expect mortgage spending to increase tenfold over the next five years"
"Analysts estimate that more than 35 million families will be looking to purchase their first home by 2030"

MIDDLE CLASS
The primary beneficiary is Brazil's exploding middle class"
Brazil's rising middle class is not a short-term trend"

These comments are certainly not ambiguous! There is a key factor that Ernst & Young also deem necessary to benefit from Brazil, "Working with advisors that are familiar with the workings of the market is crucial". We at Liquid believe this to be true in all markets, however, it is of particular importance when investing in a country that has traditionally been closed to foreign investors and where the English language is not as widely spoken as in more developed markets...which is why, since February 2009, Liquid has had a constant presence in Brazil, with Brazilian and British staff, based full time in Fortaleza, North East Brazil. This has enabled us to build strong links with leading domestic constructors, banks and law firms, allowing us to bring opportunities to our international client base that would otherwise be difficult to access.

The newest Marquise brand.

2010-11-10T00:16:00.004-02:00

The Marquise company from Fortaleza, in Partnership with other companies which have a large presence in the Brazilian Real Estate Market, such as Cyrela, and others, brings to the public the spectacular project Mandara which will be distributed in phases for purchasing. And now we present the first phase, called Mandara Lanai.

A residential resort located in Porto das Dunas beach, six minutes from Beach Park resort,known throughout the world as the biggest water park of Latin America.

The project at this first phase, will count with a residential and commercial area, which will be developed to attend the residents.

The Mandara Lanai was developed in the most modern concepts of engineering, architecture, and design.

It brings the signatures of renowned developers in many project areas.

Inside an area of 90.000m² with an amazing distribution of villas, where easily you will find all the facilities you may need for more comfort, and security.

The apartments will be available with the following dimensions -104m², 118m², 141m², with three being (suites) and a social restroom, and three private parking lots per apartment.

At common areas you will have available a beach (foot-on-sand) front of village club, with an extension of 1.600 m in total extension of whole Mandara complex, its a completely sea front, mini-golf, pools and a huge pool with endless edge with 150m of extension, pools for games, pool for kids, and many places only for kids inside the resort.

Everything developed respecting ecological rules.

The apartments will be available with a sea front view or garden view.

Inside the Mandara Lanai you will find 319 units available for purchase, the official launch for clients and investors will be on Thursday.

But make your reservation now!!!

Feel free to book a visit with us, and query any doubts about this project .
This is an incredible and certainly unique project on the local market, and for sure, now can be the great chance of a dream beach house come true, or can be the great opportunity for an investment, close to the capital in one of the most fanciest area of the Ceará state, that you were waiting for.

Brazil now.

2010-11-01T13:17:00.000-02:00

What Does Dilma Rousseff’s Win Mean for the Brazil Real Estate Investor?

As widely predicted in the pre-election polls, it was announced in the late hours of Sunday 31^st October that Dilma Rousseff of the Workers’ Party (Partido dos Trabalhadores) will be the new President of Brazil.
With a background as an economist, she was a socialist and formed a fundamental part in the fight against military dictatorship in the 1970s. Her mainstream political career truly began after this period in the state of Rio Grande do Sul where she helped create the Democratic Labour Party (Partido Democrático Trabalhista) and subsequently became Treasury Secretary until the year 2000, when she joined the Workers’ Party. Lula da Silva appointed her Minister of Energy in 2002 and, as a result of the resignation José Dirceu due to a corruption scandal, she became Chief of Staff in 2005 until March of this year when her run for presidency was announced.
As a result of taking over the mantel of da Silva, who leaves office with an unprecedented approval rating of 81 percent, she has been referred as the future ‘automatic pilot president’ and ‘Lula with a skirt’ by media pundits – something which has denied vehemently. Regardless of this, Rousseff will now preside over a country that has made some notable achievements since the last change of power which will serve to solidify the business / investment environment of the country – examples include the creation of over 15 million jobs (particularly in the less wealthier north-east regions); the removal of 13 million people from absolute poverty; social and housing programmes; the ever-rising middle class with over 30 million joining the class C amongst others. Whilst many debate that Lula too entered into power at the right on the back of former president Fernando Henrique Cardoso’s successful policies – the above facts must be commended. Nevertheless, Rousseff will not be out her challenges such as necessary improvements required to the country’s education system; improving infrastructure and the encouragement of further innovation (Brazil is lagging considerably behind many of its emerging economy counterparts including China and India).
Investors and business owners in the country have not seen a great deal of change in the marketplaces across the country despite the election decision being postponed earlier in October – indeed, private equity and M&A activity has continued to grow, contrary to what was previously the case in the build up to an election in Brazil. Her pledges with regards to the Brazilian economy of relevance to real estate investors are as follows:

the continuation of social welfare and housing programmes such as the ‘Bolsa Família’ and the ‘Minha Casa, Minha Vida’ housing programmes (phase 2 is currently in the pre-launch stages);
a more flexible state sector, while actively supporting private enterprise (something of which has been questioned by economic commentators);
reduce the inflation by half a percentage point to 4 percent by 2012 – although she has emphasised the need for this to be done in a careful and gradual manner;
increase national savings levels;
reduce public sector wage levels;
maintain central bank autonomy, which has proven to be a success;
rid the country of extreme poverty by 2016;
cut the state spending to enable the interest rates to be reduced in the coming years;
impose additional taxes on capital inflows, to limit currency overvaluation (something of which Central Bank chief Henrique Meirelles recently stated as ‘a possibility’).

Value Brazil

2010-10-25T13:03:00.000-02:00

How to Value Brazil Property and Land.

Please see an interview below with Aline Lisboa.

A fully qualified surveyor and valuation engineer with several years experience of examining real estate and land throughout Brazil.

By: http://www.brazilinestmentguide.com/blog/2010/09/how-to-value-brazil-property-land/

-You can give our readers some information about your formation as a valuation engineer?

Like all engineering students, I gained my qualification from a state university (of Rio de Janeiro) and in the first part of my higher education, worked as an intern at an insurance corporation for six months. My time here was spent supporting the overall operation of the organization as well as learning the fundamentals of property evaluation, feasibility analysis and several other topics which served to assist my engineering studies – in fact, I decided to extend my time there based in the organization’s consultation department. Whilst studying still, I went work in the managing engineering department of the same company and I received a proposal from an ex-client (a bank that operates in six different countries who was also a client of this firm) to form the CONAI property and land evaluation company which, naturally, I jumped at. Today, in addition to myself, we have an experienced architect, a qualified lawyer, an accounts team as well as administrative support and trainee engineers. CONAI serves the likes of Banco Itaú, HSBC Bank Brasil, Brazilian Mortgages, Bancorbras, Banco do Brasil amongst others.

Our operation is mainly focused on work with these banks on their credit lending, complemented by real estate and land viability studies; survey reports; detailed measurements and cost of works budgeting. We also work with independent real estate companies and buyers, both small and large, in the same manner and our case load is increasing in line with the growth of the Brazilian property market.

-What are the main factors that should be taken into consideration when you approach the evaluation of a building or plot of land?

From the outset, it is worth stating that approaching valuation should be viewed in essentially the same manner regardless of the type of real estate related asset – whether that is a field, an office space in a commercial building or a residential apartment. In my professional view, perhaps the most important factor to consider is the location and neighborhood – something which remains fairly standard in most global marketplaces. Of course, there are also other fundamentals such as the build quality (which, particularly in Brazil, can vary hugely); level of finishing; micro economic factors; neighboring towns / cities; competition; local government policy; regeneration policies in place; employment; income levels amongst other factors. A problem that we often encounter that your readers should be aware of is that in large conurbations such as Rio de Janeiro and São Paulo, where there is urban sprawl and visible divides of income distribution, statistical discrepancies can occur in producing a market valuation due to such extreme variations in price ranges. For example, I can value a 3 bedroom apartment in Barra da Tijuca in Rio’s West Zone (where the rate of violence is relatively low) and have the exactly the same unit in neighboring Jacarepagua (where the violence rate is slightly higher due to the presence of a generally poorer demographic of resident) which would value significantly lower – the difficulty is exacerbated when evaluating a property that is on the border of a richer and a poorer area. For many Brazilians, your postal code is a sign of your social status – a consideration that completely contradicts the mathematically-based principles we learnt at engineering school! The point I am trying to make is that valuation is not always a clear cut process.

-In terms of analysis of property or land values – are there any public sources of data that can be accessed by investors?

Here in Brazil, the current professional analysis of the market value for property is solely allocated to private companies specializing in real estate assessments. I believe one of the main reasons for this is the real estate market in Brazil has gone through a great period of change of the last two decades and, as such, the process has become convoluted. However, during this period the market has become more sophisticated and sold data, although no official is often logged by real estate companies (which can be made available upon demand). It is also possible to see the level of IPTU (Imposto sobre a propriedade predial e territorial urbana, local government tax) being paid which can determine what the declared value of the property is – however investors should be careful as to assume this value as we often see that, particularly in a growing market, the real time evaluation is often higher (this can be accidental or purposely registered with the local government in order to avoid paying higher taxes). It is my belief that the Fundação Getulio Vargas (FGV) are in the process of creating what will be Brazil’s first official register of property and values – whilst this will not be a legal record, it is widely agreed that it will help with the process of understanding house prices in Brazil better (note there has not been a confirmed date for this to be available to the wider public).

-What are the main risks that you feel an investor in Brazil should be aware of and how can they be protected?

When analyzing risks, I think it is important for the investor to ask him/herself the following questions as a minimum:

What are the most promising sites?
Which are regions are expected to grow the most?
Should the investment be within the city or in the outskirts?
Should the land plot be one that is ready for development or one where planning permission needs to be obtained?
What are the potential asset depreciating factors that could come into play? For example, is the property or land plot located in a poorer neighborhood / is there a probability of growth of (Favela) slums or other related risks?
Is the area subject to flooding?
How are the basics infrastructural facilities such: (water, electricity supply and sanitation)?

Other than these, obtaining the correct legal advice is a must and, whilst overseas Brazil property investors have identical rights to residents, any contractual agreement must been examined with a fine toothed comb. There are also certificates that guarantee the investor a minimum level of security when purchasing a property, namely:

a certificate of encumbrances (Certidão de Ônus Reais) which will indicate whether the property or land plot has any attached issues whether that would be judicial, existing liens (such as mortgage ties) or other overriding factors (such as usufruct rights) that can corrupt a clean transaction;
a certificate which will show the history of the property in the last twenty years (Certidão Vintenária) – an added guarantee that is often used to assure the buyer that there have been no previous legal or other related issues;
a long lease certificate (Certidão Enfitêutica) in order to determine whether the property is public or private;
With regards to rural Brazilian land / property purchases, ownership can be protected in the form of a geo-referenced certificate from INCRA (Ministério do Desenvolvimento Agrário, Ministry of Agrarian Development).

Other important factors to bear in mind include issues with regards to shared condominium obligations (including related taxes and other fees) and also, particularly with commercial property in Brazil, if the owner/s has/have any labour claims against him/her/them.

-How can overseas investors ascertain whether important factors such as water, electricity, drainage are adequately in place?

The best point of reference for this information is the local government office Called here as (‘Prefeitura’). And some agencies which also are responsible for each kind of these services. In Rio de Janeiro, for example, the company responsible for water supply is SECONSERVA and then other services related to sanitation, gas supply, electricity, canal management, storm drainage and other essentials are dealt by in conjunction with COMLURB and the CGC (Coordenadoria Geral de Conservação, General Coordination of Conservation). It’s important to remember that these services are primary only and investors should verify such essential systems within the buildings they are investing in – particularly with larger projects (such as condominiums or apartment blocks).

-With regards to the ongoing national controversy with regards to the Movement of Landless Workers (Movimento dos Trabalhadores Rurais Sem Terra, MST) – many investors remain concerned as to the risks of buying land, particularly in remote locations. Can they be minimized?

Firstly, is should be noted that the MST is a movement organized by rural workers in order to place pressure on the government to ensure full access and entitlement to land produce – the role of the movement is often unjustifiably assumed by both Brazilian and internationals as being something akin to gypsyism. Secondly, what many people do not know is that not enough to simply ‘take hold’ of the land and for it to be subject to land reform it needs to be unproductive. What follows is that the government buys the unproductive land in order for it to be redistributed to the rural workers. There have been many cases where MST protesters have occupied these lands have been removed by the military because it is deemed to remain as private property. A short-term solution for those who have land that may be considered unproductive is to take advantage of the market in Brazil and sell or perhaps come to an agreement to rent (where possible). I am aware that this is what is occurring in various regions in São Paulo, Rio de Janeiro and Rio Grande do Sul amongst others.

-The CONAI organisation has its headquarters in Rio de Janeiro, which is one of the cities of Brazil which has witnessed massive growth in property prices in recent times prompting a debate that they are becoming out of touch with reality – how true do you think this is?

The growth of the market values of properties in Rio de Janeiro has happened for different reasons and some parts of the city have witnessed more rapid growth than others. In the West Zone for example, we have Barra da Tijuca: a neighborhood that has a tremendous amount of land suitable for building with the added benefits of being located close to the beach; a good proportion of upper middle class Cariocas as well as very modern facilities / infrastructure without crowdiness. Prices have increased considerably and land has highly sought after by developers. The South Zone (home of world renowned areas such as Copacanbana, Ipanema and Leblon) contains some of the most expensive real estate in Brazil which has also increased (in addition to very limited available land space). Then you have areas such as Jacarepagua (mentioned above) and areas of the north zone (such Tijuca, Duque de Caixas and Nova Iguaçu) and as well as moving to north of the state where much of the country’s new found oil wealth is to be found (such as Macaé and Campos de Goytacazes) – where prices are considerably lower in comparison but growth prospects look strong. The fact is that it is important to look at prices from an affordability perpsective – as our economy has grown, so has the wage levels of the general population. People in Rio, generally speaking, are earning more (this includes the lower classes) and have better access to credit than ever before and, therefore, prices have have been increasingy accordingly. I think it will be time to worry about a bubble when the house prices go beyond the abilities of people being able to meet their commitments. The banks have seen what has happened in the rest of the world with regards to over-zealous lending and also do not want a repeat scenario of what happened in the 1980s – for this reason, it is not a simple process to get a home loan in Brazil (as was formerly the case in countries like the USA) and inflation control is considered of more importance than ever (by both the government and the general public). I also feel that Rio de Janeiro (and many other cities of Brazil) have an issue of under-supply, once this situation improves it should theoretically bring more equilibrium and sustained growth into the market place.

-What areas of Brazil do you see as the most promising?

I think it is fair to say that most states in Brazil are witnessing growth in some way or another yet, specifically, as well as Rio de Janeiro (city and state), São Paulo has for a long time offered interesting opportunities – the East Zone is currently a hot bed of activity with the creation of the red subway line. The central states such as Goiânia and Tocantins offer excellently valued real estate and are receiving a huge amount of both private and public funding (such as via the Growth Acceleration Programme). In the south, Porto Alegre and Curitiba are excellent cities to invest in with modern facilities and some of the highest standards of living in the country. The north-east also offers excellent value (prices are generally cheaper the further north of the country) and is also seeing a wide range of construction activity including hotel and other commercial development as well as residential projects throughout.

New Brazil Interview with Riordan Roett Part 2.mp4

2010-10-15T10:39:00.000-03:00

Part two.

New Brazil Interview with Riordan Roett Part 1.mp4

2010-10-15T10:38:00.000-03:00

Interview with Author of “The New Brazil”: Riordan Roett

October 14th, 2010 by admin

Please see below a two part interview with the author of a recently published book – “The New Brazil” – Riordan Roett. As a professor of international studies at the Johns Hopkins University in Washington DC, Riordan has written over 22 books on a range of topics and we had a chat on a range of topics related to Brazil including the main economic growth characteristics of the country; the issues / problems; inflationary pressures on the economy; Brazil as a world ’superpower’; its position in relation to the other BRICs; the China / Brazil relationship; the United State’s attitude to the country; the country’s political stability amongst other topics.

New vistas for Indian investors

2010-10-11T18:17:00.000-03:00

Brazil to open new vistas for Indian investors

Huma Siddiqui
Thursday, Apr 08, 2010 at 2252 hrs IST

New Delhi: With Brazil launching a $878-billion program to upgrade the country's infrastructure, there are huge opportunities for the Indian companies to get projects, contracts and orders to supply of equipment, machinery and materials.

The India-Brazil-South Africa (IBSA) Summit, to be held in Brazil on April 15, will give an opportunity to the businessmen from these countries to discuss the opportunities available. It is seen as a trilateral developmental initiative to strengthen cooperation, policy dialogue and coordination among these major emerging countries.

The Indian business delegation, likely to be led by Ficci president Rajan Bharti Mittal for the business summit that will precede the actual IBSA and Bric summit, will get an opportunity to assess for itself the sectors on which Indian businesses can capitalize.

There will be meeting between representatives of development banks at the Brazilian Development Bank (BNDES) head office, under the aegis of Ficci, and this will be followed by the seminar, Bric and IBSA: Common Business Opportunities.

Talking to FE, Brazil ambassador Marco Brando said, “Issues relating to investment opportunities, connectivity, agri business and financial markets will top the agenda of the IBSA, Bric as well as the bilateral summit next week.”

Though India is very cautious, other Bric members have a common position on International Monetary Fund (IMF) reform. “The parties hope to expand the number of currencies that comprise the Special Drawing Rights (SDR), the IMF's reserve asset, to include the Chinese yuan, Russian ruble, Australian and Canadian dollars, and gold. The IMF is set to review the SDR basket of currencies in November 2010,” said officials.

According to both government as well as industry sources, “An Indian company wanting to set up shop in Brazil requires no special government authorization to organize a local business, unless it is formed as a branch or is in a restricted industry such as financial services.”

A joint study by Ficci and Deloitte states, while the investors are free to expand their operations, the incentives granted for the original investment are not automatically extended to the enlarged operation.

“Indian companies should rush in as the up-gradation program of the Brazilian infrastructure plans to improve access to clean water, medical posts and energy as well as modernize the country's air, road and rail systems. The energy part of the plan envisages investment of $257 billion, including Petrobras' $220 billion investment plan,” R Viswanathan, India's ambassador to Argentina, Uruguay and Paraguay.

Getting a Piece of Brazil

2010-10-09T14:07:00.000-03:00

BUYING PROPERTY IN BRAZIL: GENERAL OVERVIEW

Getting a Piece of Brazil

There is an expression "Who doesn't register
is not the owner." Your contracts and agreements are
not valid until they are registered in Cartório.

Brazil is a fantastic country that can offer some outstanding life-style opportunities for the right person. Unfortunately, there is not much information available for people looking into something more than a brief touristic adventure. Property purchase requires detailed understanding of the requirements of the law and the dynamics of the search, negotiation and buying processes.

This article is not intended to serve as an authoritative source of information related to dealing with a variety of situations in Brazil. Instead, it serves the purpose of answering some of the most common questions pertaining to a number of areas as well as orienting you in respect to the possibilities of situation assessment, requirements and, of course, action.

I am a strong believer in pre-emptive approach to solving problems. It is much easier and a lot less expensive to take some evasive and precautionary actions than to deal with full-blown unanticipated problem. It is even truer in any country where you have numerous disadvantages of unfamiliarity with judicial process and law, language and culture.

Here are some of the terms and requirements of conducting Real Estate transactions in Brazil:

Can foreigners buy or rent Real Estate Property in Brazil?

Yes, they can!!!

Foreigners are permitted to buy, own and rent Real Estate Property. By law Brazilians and foreigners are on almost equal footing when it comes to property ownership and tenant rights. Non-Brazilians are subject to certain limitations dictated by national and security interests. Foreign Governments can't own Real Estate Property except buildings and properties used for consulate or embassy sites.

Sources and further information:

Constitution of Federal Republic of Brazil Article 5, Item XXII.

Any local Cartório Office.

What documents do I need to buy or rent property in Brazil?

Your travel passport is usually enough in order to sign a rent lease agreement. To buy a property CPF (Cadastro das Pessoas Físicas) is also required. CPF is easily obtainable by foreigners.

Who can I use as a rental/real estate agent?

There are numerous business establishments and licensed individuals who can offer your services of apartment rental brokers or for sale property listings.

Administradoras _ Business specializing in administering RE properties for individual owners or condominiums.

Imobiliárias - Essentially Real Estate Agencies

Procuradores -( Real Estate Brokers) Businesses specializing in locating desired properties.

All these businesses can be found in local Yellow Pages under Administração de Bens, Administraçã de Condomínios, and Imobiliárias.

Needless to say, references and direct referrals can save you from unscrupulous operators. In case of untried and unknown agent you might want to verify that the individual or business you are dealing with are members of CRECI .

(I 'm on CRECI registered to act as a Real Estate Broker on Brazil.)*

*Jose Gualberto

But what is CRECI (Conselho Regional de Corretores Imobiliários) or Regional Council of Property Managers?

CRECI is the Professional Organization regulating career Property Managers and Real Estate brokers. Only registered members are legally allowed to work as Corretores (Property Managers, Realtors or Brokers). While CRECI membership is not a guarantee against dishonest actions by certain individuals or companies, it provides you with at least additional leverage and official complaint organ.

Do I need a local lawyer to conduct Real Estate transactions in Brazil?

It is not mandatory, but recommended.

Can I lose the rights to my property?

Yes, under certain circumstances you can.

What is a Registro Imobiliário?

Registro Imobiliário is the statute of Real Estate Property. In order to claim possession of a Real Estate Property you have to register the transaction of property ownership transfer at Registro Imobiliário.

Usually takes place at Cartório do Registro de Imóveis located in the same jurisdiction as the property, but can also be conducted at any location by an authorized official.

There is an expression "quem não registra não é dono" (Who doesn't register is not the owner). Your contracts and agreements are not valid until they are registered in Cartório.

What is the extent of the degree of publicity about ownership of property in Brazil?

It literally means that anybody can have access to property ownership information without any reason or authorization.

What is Matrícula?

Matrícula is the passport of a Real Estate Property; the only legal relationship between the property and its Matrícula is one-to-one. Besides uniquely identifying a property, Matrícula contains detailed description and historical records of all legal, judicial and financial transactions pertaining to the property and full information, such as description of the property, its precise address and location, past and present owner information, mortgages etc.

Do all Real Estate Properties have Matrícula?

No, not all of them do. Only properties that were constructed or involved in some type of legal or financial transactions since December 31, 1973 have one.

What happens if the property was altered through construction or natural causes and doesn't correspond to the description contained in Matrícula any more?

Property description needs to be changed through a judicial process called Processo de Retificação.

Unless you are willing to plunge into legal quagmire, verify that the property description contained in Matrícula corresponds exactly to reality. To be specific, you buy what is on the paper, not the RE property itself.

What documents do I need to request from property seller before considering buying a property?

At a minimum the documents you should ask for are:

- A copy of Certidão de registro da Incorporação no Cartório de Registro de Imóveis.

- A copy of the Convenção de Condomínio*.

* Just if you are buying some place inside of a condominium such an apartment or a house.

- A copy of License of Construction (Alvará).

* Just if you are buying some place under construction, or land plot with some construction project, or in case of someplace recently constructed.

- A Copy of Architectural Plan of the construction approved by the Mayor's Office.

What do I need to do when I find a property that I'd like to purchase?

- Check for Matrícula of the real estate property. Matrícula is a document that contains information about all transactions directly related to the property since its construction. IPTU values may be variant, ask your Broker or to the owner the informations about this tax. The ownership transference you can be obtained (the Matrícula) through a local Cartório de Registro de Imóveis.

Verify that the property is debt and lien free. In order to verify IPTU payment complacency check with Prefeitura by submitting o número do contribuinte (registration number) indicated in Matrícula do imóvel

- Verify that the Condomínio fees are paid off.

Any debts on the property can and should be taken into consideration during the negotiation.

How much should I give for a Sinal?

Sinal (down payment) can range anywhere from 5 percent to 50 percent of the agreed value of the property.

Can I pay for my property in currency other then Real?

No, always pay in local currency.

What is an acceptable commission paid to the Real Estate agent for sale or exchange of a property?

The standard fee is 6 percent of the value of the deal (property). In case of property exchange, commission is usually split up between the parties involved. In sale, the seller pays.

What is CPF?

CPF (Cadastro das Pessoas Físicas) is an identification number that is used for documentation, registration and identification of individuals during and for financial transactions.

Why do I need CPF?

CPF is required for identification and registration purposes, to conduct financial transactions, such as opening up a bank account.

What is Cartório?

Cartório is a Notary Office.

DOMESTIC HELP

How much should I pay domestic help?

Check the local market. Talk to people who have domestic help. Determine whether how much service you need and number of days per week that you may require it. If you can limit work hours to 6-8 hours up to three times per week, you can hire help as prestador de serviço and pay only agreed hourly or daily wage. Based on the availability and quality of domestic help and the amount of work daily rates can be as low as R$ 40.00 and as high as R$ 80. Full time help should get paid at least 1½ minimum wage plus transportation and other expenses.

What Payroll taxes should I pay if I employ workers in Brazil?

Social Security tax: 20 percent

Other Fees: 2.0 percent to 6.0 percent

Labor Accident Insurance: 1.0 percent to 3.0 percent

Severance Pay Indemnity Fund (FGTS): 8 percent (deposited monthly to employee's escrow account).

How much do I tip Porteiro?

Tipping is not big in Brazil. Though some places that deal almost exclusively with foreigners became tip oriented, the majority of establishments are not. Restaurants add 10 percent service fee to the check (BTW, it doesn't necessarily mean that the waiter gets it), hotel bell boys (men) would appreciate a Real or two, the taxists are mostly getting by on rounding up the fare. But what do we do with porteiros (doormen)?

Porteiros are sometimes tipped small amounts (R$2-R$5) when they provide occasional assistance services, such as helping with shopping bags or other courtesy gestures. It is not required and oftentimes a smile and obrigado suffice, but a small tip can go a long way.

What are basic rights granted to workers in Brazil?

Brazilian Labor and Employment Laws are extremely worker friendly. Here are just a few of the guaranteed rights:

1. Wages: Minimal salary is constitutionally guaranteed and is currently set at R$ 540.00* (To have sure the price in American dollars please consider for one American dollar in Brazil R$1.62* ) a month.

This is not a standard values, they may change any time. For an actualized Brazilian minimum salary value, and for the dollar tax rate, please check on Brazilian government web sites.

2. 13th Salary: The 13th salary is equivalent to an additional month's salary paid annually or proportionally to number of months worked in the year.

3. Vacation: Employees are entitled to at least thirty (30) fully paid vacation days after working one year for the same employer if not absent from work for more than five unjustified times during this same period.

4. Maximum Workweek is set at 44 hours with overtime pay required for additional time worked. Overtime pay shall be at least 50 percent more then regular hourly rate

5. Prior notice in case of dismissal: In case the employer wishes to dismiss an employee, he is obliged to give a prior notice of at least thirty days to the worker.

6. Guarantee Fund for Time of Service (FGTS): The government severance employment Fund (FGTS) is the equivalent to 8 percent of the employee's salary, deposited every month by the employer in a blocked FGTS bank account in the name of the employee. In case of dismissal without cause the employer has to pay a 40 percent penalty of the FGTS over the entire amount deposited in the FGTS bank account. Withdrawals, are however, authorized only under circumstances established by law.

What about Christmas presents, bonuses and tips for your building and domestic help?

They are completely at your discretion, with the exception of the Thirteenth Salary.

By Mr. Boris Goldshmit Real Estate Investor in Brazi.,

Ceará - Fortaleza

2010-10-03T19:57:00.000-03:00

The Land of Light and the new Brazilian Costa do Sol.

Lots of sun, sea and many beaches make Ceará( 148.825 km2 + 8.097.276 inhabitants) into the New Star in the north east of Brazil, and as far as the international tourism industry is concerned, it has created a new Eldorado for investors in hotel facilities, holiday apartments and golf course developments.

Fortaleza is the capital of Ceará. With more than 3, 6 million inhabitants, the capital is the fifth largest city in Brazil. The warm waters of the ocean bathe Fortaleza´s urbanized beaches, thus providing the tourist with ideal and comfortable conditions. A modern Metropolis, turkoise colored water, beautiful beaches, a mild breeze blowing from the sea and a people known for its hospitality and the joy of living. A City with best comedians in Brazil, where to make people laugh is an art. Here, the night is an inspiring invitation to have fun.Fortaleza has lots of beautiful and different attractions to be seen, felt and heard, and to be taken home, never to be forgotten.

With 573 km of beaches, nearly 3000 hours of sun p.a., and a constant sea temperature of 26 deg.C, Ceará offers all the ingredients to make it a unique real estate investment destination.

The II Forum Atlântico (27 th to 28 th July 2006) and the German-Brazilian Economic Days ( 3rd to 5th July 2005) have, with the participation of Government Ministers, Governors and hundreds of experts, come to the conclusion that Ceará fulfills all conditions to qualify as a location, ideally suited for investment in tourism and construction of holiday facilities, and occupies top ranking among holiday destinations such as Cancun, Punta Cana, Algarve, Costa do Sol, Mallorca and Canary Islands.

Up to now investments in tourism amounting nowadays, much more than 1.800 Billion Reais (US$ 823 millions) have already been earmarked for projects either under construction, to be constructed or in the planning stage.

The Real Estate market in Ceará is booming, particulary in terms of beach plot sales.

Owing real estate with beach and sea frontage, in Ceará, just 6 hours from Europe,
has proven to be a sound investment for foreign investors, who like to build large residential condominiums, hotels and golf courses.

10 unbeatable reasons make Ceará the best location in Brazil and one of the most attractive around the globe for Direct Foreign Investment in the tourism industry.

A strategic geographic location, only six and half hours from Lisbon and Miami.
Best flight connections to Spain and Portugual from the entire Northastern part of Brazil. Direct flights weekly to Madrid, 7 flights to Lisboa and 1 flight per week to Barcelona. Daily flight to Maimi and 4 flights daily to Buenos Aires.
The best climate within Brazil, with 2.800 hours of sunshine yearly and an average: temperature of 27ºC.
573km coastline with numerous large sandy beaches of rare beauty.
The low cost of land, compared to European and Caribean realty.
Low cost of building construction (material and labor) compared to European and USA.
Availability of land along coastline in plosts of over 100 hectares each.
Recognized location for tourism amongst the people of Ceará, who are renowned nationally for their good cheer and hosptality.
A credible State Governement and an expansion oriented State Tourism Departament has made Ceará into a first class national and international destination.
Safe destination, free of political, ethnic and/or religious conflicts. Absence of adverse natural phenomena like tsunamis and earthquakes.

For more information, please get in contact with us.

Ceara, North East Brazil investments

2010-09-30T10:20:00.000-03:00

2010-09-28T10:53:00.003-03:00

Private equity sees Brazil fund raising at $15 bln

* Private equity could raise $15 bln by mid-2011

* Last year, $5 bln was raised by buyout funds

* Activity gains traction, helped by strong growth.

RIO DE JANEIRO, (Reuters) - Brazil-based private equity and venture capital funds could raise up to $15 billion from investors by mid-2011, as a growing economy and increased risk taking fuel demand for investments, an industry executive said on Tuesday.

Last year, buyout and entrepreneurial investment firms raised about $5 billion. In the 12 months ending in June or July 2011, the amount could triple as local pension funds and foreign institutional investors funnel more money into Brazil, said Sidney Chameh, president of the Brazilian Private Equity and Venture Capital Association (ABVCAP.)

Chameh's remarks come a day after Advent International, the U.S. private equity firm, raised the largest ever Latin American buyout fund. The firm, led by Brazilian financier Patrice Etlin, raised $1.65 billion after 17 months of efforts.

"We are coming from a rough ride in markets and now that in general investors, who became more selective throughout the crisis, see Brazil as a safe haven, the obvious result should be massive fund-raising," Chameh said at the ABVCAP annual summit.

More than 40 million Brazilians entered the ranks of the middle class in the past six years and another 40 million should join by 2015, said Fernando Borges, the head of Brazil's business for the Carlyle Group, said in an interview on Tuesday.

That, coupled with huge government spending on infrastructure and a boom in agriculture and mining is helping propel growth, which could reach 6 percent this year after a 0.2 percent contraction in 2009, analysts said.

"Growth is the key. That's why we are so optimistic in terms of the fund-raising issue," said Chameh, a partner with Sao Paulo-based private equity firm DGF Investimentos.

Chameh said the industry is currently working on a plan to implement a self-regulation code. No timetable for the code was unveiled.

(Reporting by Guillermo Parra-Bernal; editing by Andre Grenon)

Petroleo Brasileiro SA,

2010-09-25T15:17:00.000-03:00

Brazil’s state-controlled oil producer, raised as much as $70 billion in the world’s largest share sale as investors bet on its plans to double output within a decade by tapping offshore fields.

Petrobras, based in Rio de Janeiro, sold 2.4 billion common shares for 29.65 reais each and priced 1.87 billion preferred stock at 26.30 reais apiece. The company sold 115 billion reais ($67 billion) of shares and banks have an option to buy another 5 billion reais, according to a statement sent late yesterday.

Petrobras is spending about $224 billion over the next five years to boost production to 5.38 million barrels a day by tapping deposits trapped under a layer of salt beneath the ocean floor. The share sale was priced at a 2 percent discount to yesterday’s close, suggesting investors are backing Petrobras’s plans to overtake industry rivals such as Chevron Corp.

“Many of the other global majors are being challenged because their reserves are being depleted,” said Ron Holt, chief executive officer of Hansberger Global Investors Inc. in Fort Lauderdale, Florida, which manages $8 billion. “If you look at the potential capital expenditures that the company has planned for the next several years, that is a very significant potential exploration project for them.”

The company is tapping demand for emerging-market assets to develop deposits including Tupi, the largest discovery in the Americas in three decades. The field, and the nearby Libra deposit in the so-called presalt region off the Brazilian coast, may each contain as many as 8 billion barrels of oil.

Exxon, Apple, PetroChina

After the sale Petrobras jumped to the fourth-biggest company in the world, behind Exxon Mobil Corp., Apple Inc. and PetroChina Co., data compiled by Bloomberg shows. Petrobras has a market value of $214 billion, more than companies including Microsoft Corp. and Wal-Mart Stores Inc.

“Given Petrobras’s superior asset base and growth profile versus global oils, we believe the stock should trade at a premium relative to peers,” Bank of America analyst Frank McGann said in a note to clients.

Petrobras has slumped 28 percent this year on concern the sale will cut earnings and boost state interference. After the share sale, investors will focus on Petrobras’s exploration program to exploit the discoveries, said Mirela Rappaport, who helps manage about $100 million at Investport in Sao Paulo.

Brazil will add the most oil production of any country outside of the Organization of Petroleum Exporting Countries, or OPEC, over the next 25 years and surpass Venezuela and Mexico to become the second-largest producer in the Americas, behind the United States, the EIA said in its International Energy Outlook.

Production Targets

Petrobras has doubled output in the past 10 years and will surpass Exxon’s current production by 2015 if it meets targets set in its current business plan.

Petrobras plans to boost production 7.8 percent this year, while Exxon is targeting an increase of 3 percent to 4 percent this year. Chevron plans to increase 1 percent a year for the next five years.

Still, Petrobras has missed production targets in the past and extracting oil from deep waters “could be slower and more expensive than anticipated,” McGann said. “Risks are oil prices, project execution, and politics.”

The company’s preferred shares fell 50 centavos, or 1.9 percent, to 26.30 reais at 5:07 p.m. in Sao Paulo trading, while the common stock dropped 2 percent to 29.65 reais.

As part of the share sale, Petrobras issued about $42.5 billion of stock to Brazil’s government in exchange for the rights to develop 5 billion barrels of oil reserves. The sale includes an over-allotment option by underwriters to sell 188 million shares, or about $3 billion, over the next 30 days.

Increased Control

The sale may signal President Luiz Inacio Lula da Silva is paving the way for greater control over the Brazilian economy before the likely election of his chosen successor Dilma Rousseff next month.

“It wasn’t in Frankfurt, it wasn’t in New York, it was in our Sao Paulo exchange that we carried out the biggest capitalization in the history of capitalism,” Lula said at an event in Sao Paulo today.

Production at Shell, based in The Hague, was about 3.15 million barrels a day in 2009, down from 3.25 million a year earlier, according to its annual report. Exxon’s output was about 3.93 million barrels in 2009, up from 3.92 million a year earlier.

Prior to the sale, Petrobras was valued at 8.03 times its estimated earnings for this year, according to data compiled by Bloomberg. That compares with 10.6 times for Beijing-based PetroChina Co., Asia’s biggest company by market value, and 10.8 times Irving, Texas-based Exxon, the world’s largest company by market capitalization, the data showed.

Government Stake

A total of 18 equity offerings were completed this year by Brazilian companies before Petrobras’ sale, raising $12.4 billion, data compiled by Bloomberg show. The shares have gained 20 percent, on average.

The government increased its stake in the company to 48 percent from 40 percent after the share sale, Finance Minister Guido Mantega said at an event in Sao Paulo today. That includes minority stakes held by state-owned banks.

Before the sale, the government controlled the company through 55.6 percent of voting shares. Petrobras didn’t disclose the government’s voting stake after the offering.

Lula is tightening the state’s grip on the domestic oil industry after Tupi was discovered in 2007, the largest find in the Western Hemisphere since Mexico’s Cantarell in 1976. He says Brazil is relying on the country’s oil wealth to help raise the nation’s 192 million residents out of poverty.

IPO Shortfalls

Brazilian companies have struggled to raise as much as they sought in initial public offerings this year amid speculation higher interest rates and swelling budget deficits in Europe would slow the global economic recovery. Renova Energia SA, a Brazilian developer of wind and hydroelectric power, raised 150 million reais, a fifth of what it had initially planned.

OSX Brasil SA, billionaire Eike Batista’s shipbuilding company, raised 2.45 billion reais in March in Brazil’s biggest IPO this year. That was about 7.5 billion reais less than the company originally sought.

Investors may be more interested in other Brazilian companies after the Petrobras share sale, Will Landers, who oversees about $8 billion in Latin American stocks at BlackRock Inc., said in an e-mailed response to questions.

“The fact that Petrobras was able to raise the largest equity offering ever done in the world, 10 days before a presidential election shows how far this market has come,” Landers wrote. “Removing this huge overhang from the market has to be seen as positive.”

A related video from this article you may find at: http://www.bloomberg.com/video/63211690/

- Brazil Real Estate Investments -

Pernambuco

Getting Smart!

Opening a Bank Account in Brazil

Interview

Interview with the Inter-American Development Bank (IADB)

Interview with Bruno Saraiva of the Inter-American Development Bank - Pa...

Interview with Bruno Saraiva of the Inter-American Development Bank - Pa...

Interview with Bruno Saraiva of the Inter-American Development Bank - Pa...

International Holocaust Memorial Day

January / February 2011 Brazil

January / February 2011 Brazil Real Estate & Land Investor Newsletter

My house, my life...

Minha Casa, Minha Vida’ (‘My House, My Life’) Enters a New Era

Brazil House Prices.

Brazil House Price Index Reaching Final Stages

Brazil Real Estate & Land Investors 2011 Report

Brazil Experts Discuss the 2011 Residential Property Market

Brazil Experts Discuss the 2011 Residential Property Market

How do the experts view Brazil?

The newest Marquise brand.

Brazil now.

What Does Dilma Rousseff’s Win Mean for the Brazil Real Estate Investor?

Value Brazil

New Brazil Interview with Riordan Roett Part 2.mp4

New Brazil Interview with Riordan Roett Part 1.mp4

Interview with Author of “The New Brazil”: Riordan Roett

New vistas for Indian investors

Getting a Piece of Brazil

BUYING PROPERTY IN BRAZIL: GENERAL OVERVIEW

Getting a Piece of Brazil

There is an expression "Who doesn't register is not the owner." Your contracts and agreements are not valid until they are registered in Cartório.

Ceará - Fortaleza

Ceara, North East Brazil investments

Petroleo Brasileiro SA,

There is an expression "Who doesn't register
is not the owner." Your contracts and agreements are
not valid until they are registered in Cartório.