FORTALEZA, BRAZIL - Ajay Ahuja

FORTALEZA, BRAZIL

Population

174.5 million persons

PopulationGrowth

0.930 percent

Land Area

8,456,510 sq km

Currency & Exchange rate

1 real (R$) = 100 centavos

(~ 0.172815 GBP)

GDP-PPPMethod

1,048,754.0 millions of US dollars

GDP Growth

0.560 percent

GDP Per Head

6,011.0 Thousands of US Dollars Per Person

Financial

Interest Rate

Inflation Rate

15%

12.5%

National Bank

Banco Central do Brasil

Political

The present constituency was formulated in 1988. Legislative power rests with the bicameral National Congress. The federal republic consists of 26 states and one federal district. The president and congress is elected every four years, and the president leads a cabinet of ministers.

The current President Luiz Inacio ‘Lula’ da Silva, the leader of the Worker’s Party won the 2002 Presidential Elections convincingly with 61% of the vote. It was his fourth attempt at the Presidency. His election represents a vote for change. Lula has pledged to continue his predecessor's commitment to IMF targets and fiscal discipline. He has so far managed to win the confidence of the markets, and has given his full backing to the Central Bank which has increased interest rates to keep control over inflation. But he has also pledged to deliver a better social deal for Brazil's poor by announcing a 'Zero Hunger' campaign with the aim of reaching 1.5 million poor families by the end of the year.

Social Security

Yes

Languages

Portuguese (official), over 195 indigenous languages, German, Italian, Japanese, Korean, and Baltic languages also spoken

Customaries

Handshaking is customary on meeting and taking one’s leave, and normal European courtesies are observed. Frequent offers of coffee and tea are customary. Flowers are acceptable as a gift on arrival or following a visit for a meal. A souvenir from the visitor’s home country will be well received as a gift of appreciation. Casual wear is normal, particularly during hot weather. Smoking is acceptable unless notified otherwise. The Catholic Church is highly respected in the community, something that should be kept in mind by the visitor.

There are a number of lavish festivals throughout the year in Brazil, the two most notable being Bahia’s Carnival just after Christmas (from December to March) and the Carnival in Rio de Janeiro (February/March), widely regarded as the most spectacular and extravagant in the world

Ethnic Make-up

European (Portuguese, German, Italian, Spanish, Polish)	53.0%
Mulatto (mixed European and African)	38.0%
African	6.0%
Asian (Japanese)	1.0%
Middle Eastern (Lebanese, Syrian, Turkish)	1.0%
Indigenous (includes 200 small ethno-linguistic groups) and Mestizo (mixed European and Indigenous)

Tax

Income Tax

Capital Gains Tax

Federal income tax is levied on taxable income.

Monthly taxable income:

Taxable income (R$)		Tax on lower amount	Rate on excess
Exceeding (R$)	Not exceeding (€)	(R$)	%
0	1,058	0	0
1,058	2,115	159	15
2,115	-	423	27.5

Annual taxable income:

Taxable income (R$)		Tax on lower amount	Rate on excess
Exceeding (R$)	Not exceeding (R$)	(R$)	%
0	12,696	0	0
12,696	25,380	1,904	15
25,380	-	5,077	27.5

Non – residents are subject to tax at a flat rate of 25%

Subject to a flat rate of 15%.

Special exemption given to those that have owned residence for five years or more and if the sale price does not exceed R$440,000.

Description

Brazil is the most populated and largest country in South America, with a vast wealth of natural resources. Its major industries are Agriculture, iron ore and minerals, steel, oil and derivatives, food processing, wood, footwear and textiles, automotive, aerospace, petrochemicals, electronics and financial services. It’s main trading partners are the US, UK, Argentina, Chile, Germany, China, Japan, Portugal and France.

Brazil also is a major player in the Mercosul with Argentina, Paraguay and Uruguay (Bolivia and Chile have association agreements with Mercosul). This common market was established in 1991.

Recently the Brazilian economy has been in for an unsteady ride. But Lula retained the successful market growth strategies generated by the policies of his predecessor. He has also acted on reform to produce high rates of sustainability in areas such as public sector pension system, employment and reforms of tax.

The gradual growth of the economy is being slightly overshadowed by high inflation rates, yet the Prospects for 2004 look better with predicted growth.

Investor Profile:

Cash & Equity Investor

Pension Investor

Downshifter Investor

Business Investor

Category:

Bronze

Population:

Total

British

7,400,000

2000

Climate:

Hours of Sunshine Per Day in Summer

Days of Rain Per Year

January

July

Average

Water Temp.

Ten

130

31C

29C

27C

Proximity to:

Airport

Beach

Nearest City

Aeroporto Pinto Martins

Fortaleza CE

30 minutes drive from the city

Praia Beira Mar, Praia do Futuro & the Beach Park

(Jericoacoara) & Natal

Restaurants and bars:

Fortaleza is well served with good restaurants and you can find many varieties of food ranging from typical Bahian dishes, Italian, Korean and Japanese, with the Kabuki and Moyashi restaurants favourable with travellers and locals.

As Fortaleza is on the coast, one can expect to find a plethora of fine seafood restaurants serving up feasts throughout the day. There are always places by the beach where you can enjoy some very good crab and sit with your friends listening to live music. After hours winding away by the coast, there are numerous bars and cafes to go and if it takes your fancy, places where you can sing and dance!

From Monday through Monday there is always something going on in Fortaleza. At the weekends, there are always clubs and bars trying to tempt in the customers, in addition to the fantastic year round concerts packed with famous artists.

Sports and leisure facilities:

One of the best places to go windsurfing, if not the best place, is near Fortaleza. Take your pick from water sports, dune buggy rides, sand boarding, boat rides, fishing, horseback riding, football and volleyball.

Transport:

Public Transport

Roads

Travel to and from Fortaleza is best accomplished by plane or bus or even by boat! Within the city itself, there is a lot of public transportation available, such as buses and taxis. Fortaleza also has also introduced an innovative transportation method called 'MotoTaxi'. To use this service, one pays roughly £1 to get anywhere in town by Motorcycle.

The roads are in excellent condition and provides good travelling links to other cities throughout the country.

Crime rate:

Be careful not to accept drinks from strangers and the safest way to travel is using taxis or public bus system. Try and stay in well-lit areas and take the usual precautions that you would whilst abroad. Also take into consideration that even though Fortaleza is a very modern city, once outside the city things change rapidly.

Main types of employment

Fortaleza does suffer from unemployment, yet fares much better than most other northern states and is the wealthiest city in the Brazilian Northeast.

Fortaleza deals mainly in agricultural products such as sugar, coffee, rubber, cotton, rum, rice, beans and fruits in addition to providing tourism and services

Future plans:

The north east of Brazil is starting to see a large increase in international tourism. With flights becoming cheaper, Latin America is becoming a popular destination. The fantastic long-distance bus services offered in Brazil have improved the communications between cities in addition to regular internal flights through domestic carriers.

Yield range

11 – 18%

Type of property

Entry Price

Rent-

Peak

Rent-

Off Peak

Average Annual Yield

2 bed apartment

£16,000

£280

£230

18%

3 bed apartment

£31,000

£310

£270

11%

3 bed townhouse

£29,000

£310

£260

11.7%

Detached

£31,000

£320

£280

11.6%

Demand for letting

Peak

Off peak

High

Moderately High

Finance and leisure scores:

Total (out of 10)

Financial (out of 5)

Leisure (out of 5)

Flights scheduled from:

Manchester, Birmingham, London Airports and some other major airports. Usually at least one connection flight is required through Milan, Lisbon or Amsterdam from Europe or through Miami in the USA.

Typical cost of flights:

Peak

Off Peak

£600 - £800

£400 - £650

Operators:

Varig Air, British Airways, Alitalia, Tap Air, Tam airlines, Air France, Iberia, Lufthansa, United Airlines, Aerolineas Argentina

Description:

Fortaleza, is the wealthiest in the Brazilian Northeast and definitely one of the most beautiful. It is known for its beautiful beaches, the year-round sunshine, soft breeze and rich handicraft. It is a tropical paradise where you can find nice and hospitable people and Its nightlife unique. Its coast is the most beautiful in Brazil. A few years ago, the popular local fishing village of Jericoacoara has dramatically been discovered as place of great natural beauty nurturing an intense contact with beaches and fishing villages. The great majority of travellers often delay their departure because of their huge fascination with such a unique and beautiful part of brazil.

The yields are dwarfed by such a high interest rate which has been set to control the hyper inflation that the country has experienced over the years. Political reform hints that the interest rate can be lowered significantly as inflation is controlled. When this happens the yields will then make sense. Entry costs are low due to lack of demand and such high borrowing rates. If you can purchase a property for cash then do so and remortgage when the interest rate has fallen below 8%. This is a wild card entry as there is a fair degree of financial risk investing here because of the country’s track record.

Hot Website:

www.jericoacoara.com

Estate Agents:

Name

Address

Tel

Web

Property Bond international Ltd

17 / 19 Amsterdam Road
Isle of Dogs, Docklands
London
E14 3UU

+44 (0) 207 538 0102

www.brazilian-property.co.uk

Fortaleza Houses