Brazil vacation rentals delivering solid rental returns

Brazilian Homes flagship project in Pipa Brazil, has seen solid rental bookings for the Brazilian summer months. Since December, the project has enjoyed occupation levels of over 90%. The last 12 months, over 80% of all rental guests have been Brazilian tourists with only 20% of rental booking coming from foreign tourists.

In our customer satisfaction surveys, the feedback from Brazilian clients has been extremely positive with virtually all guests saying they will definitely come back again next year. This is definitely good news for current property owners as rental income levels are expected to reach new record levels in 2010.

With this development being brand new, it is still early days for the property owners. However, based on the flying start in 2010, we forecast net rental returns to reach levels between 6-7% this year. The rental rates will increase later in the year, and providing the Brazilian economy keeps on growing, it is forecasted that occupation rates will improve as well. Given these two facts, from 2011 on, we forecast rental returns to improve further reaching levels between 7-9%.

Read more about the Pipa area on our Pipa property page.

Quality matters for generating rental income in Brazil

Brazilian Homes extremely strict property sourcing policies is proving that quality does matter when buying investment property in Brazil. While many foreign property buyers have been focusing on buying cheap and low quality property developments in Brazil, it can clearly be seen that low quality and cheap properties rarely generate any rental returns. There are many completed low quality developments in the northeast of Brazil that are simply standing empty.

Clients of Brazilian Homes, have all invested in high quality properties in prime locations. Now that the developments are completed, the rental income is proving to be solid. Main reason for the success is that our properties have all been high quality projects, in prime locations and areas people want to spend their holidays in. The Brazilian tourists are clearly becoming more demanding also with regards to build quality, and for a rental property in Brazil to produce a solid rental income, it is imperative that the property also meets the quality expectations of the Brazilian clients.

One of the biggest mistakes foreign property investors do, is that they try and buy property in Brazil only using a low price as a key factor when deciding which property to buy. This might sound like a good option on paper, but in real life there are only two ways to make a profit from a Brazilian property 1. The property needs to be in a popular area 2. The property needs to meet the quality expectation of the clients renting the property. Providing there two criteria are met, clients stand an excellent chance to make money from Brazil vacation rentals.

Please see our section about Brazil real estate for sale. All our developments are in prime areas and represent excellent value for money. To read more about built properties, please visit our section about houses and homes for sale in Brazil.

Rental property in Pipa Brazil