Buying a Flat in Brazil

Mr. Nuno, due to time restraints asked me to publish this informative advice on buying a Flat (condo) in Brazil.

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Ray,

As I haven't bought Brazilian real estate as of yet, all I
can share is in the realm of theory and under the same
perspective you might already have: a keen interest in
collecting experiences (good as well as not so good). As
such you must take my writings with a few grains of salt.

That said I'll hold nothing back, save for all the
fastidious details of every case I've being told about
along the years by both Brazilians and Europeans. On the
investment / value angle I already said my piece, didn't
I? So without any further ado here go the pointers I
managed to collect / synthesize so far.

- Take a Lawyer alongside.

I know cases of fellow Portuguese (and other Europeans)
who were bamboozled into buying apartments loaded with
debts - left by the previous [chain of] owners - also lots
of other downsides, like hidden structural, maintenance
and neighborhood problems (I'm a civil engineer so I can
hold my own, but you might want to take counsel on that
area too). People vanish into the sunset but someone has
to pay the tab. Civil Law in Brazil is different from
America: some of the things in your Country that are in
"public record" only a Lawyer (retained by you or
otherwise) is allowed to access and check out in Brazil.

Corollary: most of one's life is far from private from
paralegal's eyes - pretty much underpaid eyes I should add
- so much so that a Private Eye has many channels to get
what you ask of him. The legal landscape in Brazil is food
for a great topic onto itself, but I digress. Suffice is
to say that you need a good Lawyer (LostAgain once told me
that in Colombia it is not unheard of "your" [maybe
corporate] Lawyer offering his services to the
"opposition" - unbeknownst to you...), meaning that you
may be better off acquiring him / her thru [a chain of
trusty] local friends. So far I've retained representation
in Recife (whom has proven herself very honest and
effective) and I am in the process of getting another in
the Natal area by variations on that process.

The usage of private-eyes is, I'm afraid to say, another
area I was forced to explore (recall the "Piranha"
episode), and in my experience a strong currency goes a
long way in getting [deep] info in a Country of underpaid
civil servants and petty and cheap private employers (who
often don't realize the security consequences of their
small-mindedness). A PE can easily be found on the book
("Detectives", "Investigadores"), contracted, instructed
and paid thru the net (and snail-mail) with zero face
exposure - especially for a Portuguese writer such as you.
(Enough of random thoughts already.)

- Buy into an All Proprietors building or area.

No renting or subletting mixes. There's a history of "wild
occupation" of private property (mostly land, but also
habitations) by the underprivileged (whose numbers are
huge in Brazil, should you recall the "Movimento dos
Sem-Terra"). In an all proprietors building your risk is
considerably reduced - way, way less as I hear from
Brazilians themselves - as everybody has a vested interest
in mutual defense and common preservation of assets
(strength in numbers).

- Target communities that can afford Maintenance.

The odds that people really pool their resources and try
to keep the edifice(s) in good shape are way better (good
old self interest) in an all proprietors setting. The
amount of collective resources is of course a function of
the predominant class, and to a lesser degree, the
educational level. Do target an environment of middle
class (not lower middle class) professional types and
upward. If you can afford it, go for an enclosed condo or
walled off "park of houses" with shared active security
(double gates, guards, cameras, dogs - you know the
drill). Do NOT assume (as we would at our home Countries)
that a young inhabiting "population" is going to see their
collective revenue increase along the years - that won't
work in Brazil.

- Look at the Second Hand Market.

Most second hand properties (even slightly used) may be
surprisingly cheaper - sometimes half the price than those
brand new on the same type. If it's not at the dead center
of downtown, an apartment vacated by [say] a divorce may
be just a couple years old and [in the process of being]
sold in a hurry - but take the Lawyer along anyway... As
you can't sit around screening the bargains as they fall
from the higher branches of the tree (the low hanging
fruit is immediately picked before reaching the market -
by the realtors themselves - that's LAm ethics for you), a
good local representation might pay for itself on that
subject alone. On second thought, one could conceivably
make a deal with a (trustworthy?) knowledgeable and
experienced realtor for a long term search while you're
away - again that is contingent on a strong enough
currency.

- Don't buy into far away or Isolated settings.

You may always enter and leave "enveloped" in a car (of
which type is yet another topic), but remoteness and
isolation are great attractors of thieves, scavengers and
kidnappers. True in principle everywhere, this is a real
risk and a law onto itself in Brazil. The worse scenario I
can conceive is a (single) isolated big house, walled off
maybe even with a couple of rottweilers barking around.
Other "observer" might see it as a big target choke full
of goodies with a token defense (walls and dogs) and no
real eyes in sight [whom might call the cops]. That type
of property needs (MUST have) active, on site, 24-hour
security - expensive as hell if not shared - and that's
why most Corporate HQs are like that everywhere.

- Other considerations on Security

When buying a property in Europe (and I'm sure in NA) one
always goes looking for all the teeth in the horse's mouth
(location, value, and so on). In Brazil one might want to
add the security angle to check for: hard, soft and
active. I don't know about you NA guys, but Europeans
don't make much of security to their [eventual] chagrin.
When I say "check for" I mean to evaluate currently
available status and the feasibility / affordability to
upgrade to a reasonable level [dependent on local
conditions] in the near future. Usually a housebreaking in
Brazil result in everything being carted away - sometimes
in a period of days, if the owner is known to be away -
and that will include the kitchen sink!

"Hard" security would comprise: fortified collective
[double?] gates, flawless irons on the windows, tall
[taller?] walls, exposure, lighting and visibility,
[hidden] coffers and secure rooms... Much neglected even
by Brazilians: fortified doors and a security lock at
every single opening to your space - never mind if it is
just the groceries elevator door or the vertical garbage
disposal flap. Even a sticker of a good alarm company
(regardless of a real honest-to-god contract) is a great
discouragement (Damn! I use that trick here to good effect
at some of my condos). Don't forget secure parking space.

On "soft" security you might want to check: the local
culture and habits [which might compromise all "hard"
measures], workers (thru boy / girl-friends and relatives
in the "favelas") and that venerable Brazilian institution
(never to be seen in Europe nowadays) of the
Superintendent: a mix of factotum, gatekeeper, cleaner,
errand boy and mailbox on legs; typically a poor
low-skilled hinterland "Nordestino", first generation
migrant into the big city. The more general topic on
low-skill labour availability (in-house maid, "diarista",
gardener, doorman, and so on) and its opportunities and
security risks would make even another topic.

"Active" Security: CCTV (maybe a fake camera with a
blinking LED in a credible placing; which is really
passive, but who's to know?), in-house alarms (similarly:
see above), security guards, dogs, separately programmable
[random?] lights and a bevy of stronger means of
dissuasion (electric fences...) The fact that one is
paranoid doesn't mean one is not being "cased".

Great opportunities for business lie herein (integrated
security services).

Finally a previous break-in [about witch you should
diligently but discreetly enquire] might [most likely]
indicate the building / area / apartments are already
surveyed and "evaluated" - watch out!

- Don't be a stranger.

You're liable to be away most of the time in your travels.
Brazilians are social creatures. Do not run away from
them. They are bound to learn you're an American Gringo
sooner or latter. Better come clean up front and make
friends. Part of the club, [some of them] will tend to
look after your assets. Maybe even keep for you a small
combination coffer with spare keys and codes - just a
phone call away from a bind - but that is just for someone
you do really trust. Security in numbers points to a good
distribution of ages and profiles such that the building
is never deserted around the 24-hour / annual cycles. BTW,
nosy and idle old ladies make for great neighborhood
watchdogs.

=//=

As you can see, this is all common sense - no real added
value here. But a possible topic in GringoTalk for those
contemplating a real estate purchase in Brazil.

Hope I gave you a few pointers to start over - as if you
haven't already.

Yours truly,
Nuno

[LastLion]

Well,he ceertainly is detailed! Did he say when he was headed back to post at gringos.com??

Miss that portugueso!

[Micky10]

Nuno - Nuno - Nuno -

The guy is off the charts! Always detail, the opposite of me, and I love the guy. Nuno, honey come home - Micky misses you!!!!

Love - Micky