Severini Properties Imoveis Buyers Guide For BrazilThere are always a few questions that seem to come up when talking with potential buyers of Brazilian properties. Below we have compiled a list of the most common ones.Please feel free to get in touch by phone or email if there are other questions you might have. We have a wealth of knowledge about this wonderful and energetic place on earth and of course you are free to enquire about our business practices as well.Common questions and their answers:What purchasing costs can I expect?You can expect to pay approx. 7,5% in purchasing expenses as follows:ITIV (similar to VAT): 3%Notary office: 1.25%Registration of the deeds: 0.75%Administrative expenses: 1%Legal fees: approx. 1.5% What running cost can I expect?The estimated monthly community fees are between 50-200 Euros, depending on type and size of property. The yearly real estate tax (IPTU) paid on a Brazilian property varies between different municipalities, and is typically between 0,5% - 1% based on a value which is usually below the real market value for the property.Will the Brazilian property be freehold?Investing in real estate in Brazil is as safe and easy as in any modern country like the USA or Europe. There are no restrictions for foreigners buying Brazilian property and ownership is solid and secure. Brazil receives international investments with open arms, assuring respect to contracts and the rights of foreign investors. You own 100 % of land and property and as such ownership is freehold.Is my money safe?YES. When the client transfers the funds into Brazil, they are registered at the Central Bank of Brazil. The developer have to present the contract to the bank in order to release the funds. This guarantees that the Brazilian Government has recorded your investment into the country. Also, we only promote Brazilian properties that fulfill strict due diligence requirements.Can I get a mortgage on a Brazilian property?Currently foreigners cannot get a Brazilian mortgage. If needed, it is better to organize finance from ones home country. However, a Brazilian Mortgage product is believed to enter the market in the close future. Along with lower interest rates this is expected to trigger a mortgage boom in the coming years which will have a positive impact on the Brazilian property market.What about rental potential?The rental potential for Brazilian properties is exceptionally solid. Brazil is a big country with a population of approx. 186 million. The economy is growing fast and the spending powers of the Brazilians will increase significantly for the foreseeable future. No other emerging property market benefits from such a strong domestic demand as the Brazilian real estate market does. Read more about the growing Brazilian domestic demand in our Brazil real estate news section.The northeast of Brazil is also one of the fastest growing tropical holiday destinations in the world, and will become one of the leading tourist destinations in the world. Rental rates will increase as every year the area attracts more affluent tourists to enjoy peace and the magnificent nature on offer. Northeastern Brazil has a wide market appeal and is already