Apart Hotel with Rental for Life
£44,910* (150,000R$)
Ref: PBJP388
General Summary
- 0 Mins Walk to beach
- 3 Hours Drive to Natal International Airport
- 90 Mins Drive to Recife International Airport
- 15 - 20 Mins Drive to Joao Pessoa Airport (going international)
- Local Beach Restaurants
- Joao Pessoa City Centre approx 15 Mins drive
- Cable TV
- Communal Swimming Pool
- Communal Party / Bar Area
- Communal Area maintained for you
- Property Size 41.57sqm (including communal ownership areas)
- Large Studio Bedroom
- Kitchen Area
Property Overview - Apartment in Hotel - Rental Income
RENTAL RETURN FOR LIFE! - Apart Hotel in the heart of Cabo Branco on front of hotel facing the beach. An opportunity to invest with on going rental return. No running / operating costs or work involved. Just buy and receive rental income.
Studio apartment with private bathroom and kitchen area. The escritura (Title Deeds) shows that the apartment ownership of the Hotel is 41.57 sqm and this includes a percentage of the communal area.
Property Location & Area
Based in the heart of Cabo Branco
Build / Property Specification
Supplies with furniture and currently rented as part of a hotel management group.
The escritura (Title Deeds) shows that the apartment ownership of the Hotel is 41.57 sqm and this includes a percentage of the communal area.
Property Deposits & Payments Terms
The payment plan is:
Associated Purchase Costs
In addition to the listed price for the investment, the following costs will apply to your purchase:
- Stamp Duty Purchase Tax (or Registration tax) is around 3% of the purchase price (payable to the notary)
- Property Transfer Tax (ITBI) of approx 2% (payable at the City Hall).
- UK / Brazilian Lawyer (optional but recommended) £800+ Vat
- Admin / Processing (includes all processing costs) No Admin Costs
Property Running Costs
There are no running costs associated with this property as the hotel management company pay all electric, water, condo fees.
Rental / Yield Potential
Rental Income varies depending on the hotels occupancy rate. The average currently is around 517 BRL per month (NET) so all running costs have already been paid by the hotel.
To run an apartment of this size (if not operated by hotel management group), you would normally expect the following costs.
1. Condo Fee (Beach Front) approx 380 BRL per month
2. Electric 70 BRL per month
Total operating costs would be approx 450 BRL per month. Meaning the Gross rental income is effectively 450 BRL + 517 BRL = 967 BRL per month.
- Equivalent Gross income based on 150,000 BRL = 7.7%
- NET of Expenses Rental based on 150,000 BRL = 4.1%
It is expected (although not guaranteed) that the Brazilian economy will strengthen over coming years. If you look at the currency graph over a period of 4 years, it has stengthened against the GBP from 5.8 to 3.2 (3.2 as of 14/06/08).
If this growth continues, then the equivalent Gross rental return will by default increase as a percentage based against the initial purchased sterling (GBP) figure.
- A conversion of 967 BRL based at 3.2 BRL to 1.00 GBP is : £302
- A conversion of 967 BRL based at 2.0 BRL to 1.00 GBP is : £483 = 13.3%
- A conversion of 967 BRL based at 1.5 BRL to 1.00 GBP is : £644 = 17.8%
The above table does not account for any increase in the rental returns due to cost of hotel / living increasing or does it cater for capital appreciation over the coming years.
* All properties are sold in Brazilian Reais (BRL). Currency rates will depend upon your banks conversion rate at the time of transferring the monies. The current conversion rate used on this site is £1 = 3.34R$. To check the latest rate 'spot rate' click here. Prices do not include the usual purchase costs associated with a property purchase ie. Government purchase tax, legal, admin and furniture.