Invest in freehold land at Palm Springs
One of the most important aspects of buying any property or land in Brazil is the location and this is where Palm Springs Natal excels. Situated within the town of Muriu, this is one of the most affluent areas in the Natal region and Palm Springs Natal provides an exceptional opportunity to own land in one of the most beautiful and sought after locations in North East Brazil.
Why land?
Land prices are set to increase dramatically in the next decade, driven by fierce demand for housing and increase in tourism. Many private investors see investment land as a low risk investment vehicle, a solid and tangible asset unlikely to depreciate in value. With significant medium to long-term potential more and more people are turning to land as an investment vehicle. Land is a simple and uncomplicated investment and for many years it has been considered an attractive asset and solid investment.
Land plots at Palm Springs are financially appealing in 7 different ways:
1) The value of the land will rise as property prices increase, as planning regulations tighten and good quality freehold land with permission to build becomes increasingly scarce, land will rise at a faster rate than property itself
2) As the infrastructure at Palm Springs matures so will the demand, examples to the south of Natal have shown that increases of over 300% were not uncommon when the development was completed
3) Price rises as a consequence of the chronic 8 million housing shortage
4) Muriu is already an established tourist area for Brazilians. Currently the area is underdeveloped and accommodation to rent is scarce propelling interest for secondary/holiday home for these tourists
5) When the 40 million passenger airport opens (20 minutes from Palm Springs) there will be a flood of potential clients looking to purchase or rent accommodation close by
6) The 2014 world cup in Natal will bring much worldwide media attention to the area, placing Palm Springs in the shop window
7) Demand and increase in value will be driven by planned 5 star resorts nearby with allocation at premium prices. Access to these resorts is by passing Palm Springs along the RN160 and even with substantial increases in price, Palm Springs will provide an extremely competitive alternative
Freehold payment plans
Option A – Outright Purchase With 20% Discount (value used as an example)
|
Description |
Value |
|
Plot Value |
£25,000 |
|
Discount - 20% |
-£5,000 |
|
Purchase Price |
£20,000 |
|
Reservation Fee |
£1,000 |
|
Outright Purchase Balance |
£19,000 |
Option B – Interest FREE 3 Year Payment Plan (for a limited period only)
|
Description |
Value |
|
Purchase Price |
£25,000 |
|
Reservation Fee |
£1,000 |
|
Deposit 30% |
£7,500 |
|
Payment Plan Balance |
£16,500 |
General Terms
Within any period of the interest free payment plan you can pay off your balance in full or in part without penalty. Interest free payment plan outside of the UK is subject to conditions and is paid quarterly in advance. Pound Sterling price of the land plot will be fixed at the converted Brazilian Real price from the price list on the day of reservation. The value stated on the Title Deed (Escritura) will be Pound Sterling to Brazilian Real at the time of final payment. A guide to tax, notary and legal fees are available under item 6 within the login area of this website. A charge of around £20 a month will apply to both payment options, this will become payable to the owners committee once established and is for maintenance and services. These general terms are in addition to the Terms and Conditions of Purchase.
Please contact us for further information
Exit strategies
a) Selling the land plot
It is not essential to build on your plot at Palm Springs to produce a profit on your investment. The rising demand for land in Brazil and affordable mortgages strongly suggests property prices should continue to rise and investors could make a profit on the resale of the land alone. If you choose this option, DLT International LP can offer you a maintenance service for your plot and assistance when you decide to resell.
For short-term investors who are looking to make their money work for them and purchase to flip, it is imperative that they have an exit strategy in order to realise their investment from a sales point of view. We have a sales team on the ground in Brazil that can be utilised and prepare in advance a sales strategy in order to assist with any onward sale during the construction period.
b) Build and sell
Muriu Beach is a popular holiday destination for the global and domestic market with many primary and second homes already established there. The opening of the new bridge will make commuting to the south a lot easier and quicker expanding Palm Springs into the primary residence market. Building is relatively inexpensive in Brazil and investors can create a highly affordable home.
In addition to the extra value you achieve by building on your plot, your property will be increasing in value during the period of construction. As an example, currently the construction of a 3 bedroom 2 bathroom villa at Palm Springs would cost around £130,000 (including the plot) this compares with an established 5 star development only 10 minutes north where villas cost in excess of £300,000.
c) Build and rent
Nearly year-round sunshine in the region of Natal makes build and rent an attractive option. Palm Springs close proximity to Natal international airport and more importantly the new airport makes it extremely accessible to the global market. The already established tourism that comes to Muriu is an appealing option for build together with long-term lets to local residents and commuters to Natal



