In 2020, when the COVID pandemic struck and the value of the real (the Brazilian currency) fell, Nieilly and I decided to seize the opportunity and invest in an apartment in Maceió, the capital of Alagoas. The aim was to live there when we were in Brazil and to rent it out on Airbnb when we were in Belgium.
This choice has paid off: we now have a home in the most beautiful region of north-east Brazil and generate income every month ranging from 600 to 1500 euros depending on the season.
If you are tempted to buy a property in Brazil, but don't know how to go about it, you have come to the right place! In this article we explain how we successfully met all the challenges and present the costs and income associated with our investment. The best part for you, is that you don't have to worry about anything:
If you also want to invest in Alagoas starting from €70,000, please reach out. We will provide you with the best real estate options of the moment and guide you through the realization of your project, from purchase to rental management, including the furnishing of your apartment.
First step:
Finding the apartment
The first step of our adventure was obvious: finding our dream property in Maceió.
We had a budget of 300,000 reais (about 50,000€ in 2020 and is 53,000€ today), and spent weeks scouring the various real estate websites in Brazil. We had created an Excel with all the properties that caught our eye, where we noted the price, the surface area, the potential profitability and the advantages and disadvantages of each flat: is there a swimming pool? Was the building constructed within the last ten years? How far is the flat from the beach? Is there a supermarket nearby? All elements that influence the potential for renting on Airbnb.
Of course, we only looked in the most touristic areas of Maceió: Jatiuca, Ponta Verde, Pajuçara and Cruz das Almas (also the names of the four main beaches of Maceió). In addition to the websites, we exchanged hundreds of messages and photos with many real estate agents to receive the best offers.
At that time, we were each working in our respective countries (Nieilly in Brazil and Jason in Belgium). But our search was becoming more and more precise and it was time for the next step: visiting properties. Jason went to Maceió with the aim of visiting, negotiating and buying our flat within three weeks, after which he had to return to work in Belgium.
Second step:
The purchase
We looked at about 15 flats and chose three which we returned to several times. Finally, after weighing the pros and cons of each flat, we made an offer for two of them. One was in a ten year old building in the lively Jatiuca area, and the other in a newly built building in Ponta Verde. Both had the same purchase price of €46,500, and we made an offer of €41,000.
The owner of the flat in Ponta Verde agreed for €42,000 and we met with him the next day, together with our estate agent, to check all the administrative and legal aspects. As Nieilly is a lawyer, this made things much easier. We checked that all the permits were in order, and once the legality of the property was proven, we signed the contract, which Nieilly also made foolproof.
Jason was due to return to Brussels a few days later and there was only one step left to finalise the purchase of the flat: transfer the money from his Belgian account (in euros) to the owner's Brazilian account (in reais). The only problem is that in order to transfer such a large sum of money to a foreign account (€42,000), you have to go to the bank in person. Fortunately, Jason's father had power of attorney and was able to do it for him. The Belgian bank simply asked for €50 to make the transfer, and it was done.
The next day, the Brazilian central bank contacted us to verify the reason for the money transfer. We sent them the contract and the same day the money was released and paid into the owner's account.
We received the keys to our new flat, and we were over the moon! We owned a beautiful apartment right next to the beach, in the best area of Maceió, and all for only 42 000€!
Third step:
Regularisation
We then embarked on the slowest and most tedious part of the process: putting the flat in our name. What is different in Brazil compared to Belgium is that the owners have to do all the paperwork themselves, instead of going through a notary.
For several months, we visited numerous government institutions and filled out a multitude of documents. Nieilly's expertise was once again a great asset and she was able to guide us through the process without any problems.
Fourth step:
The furnishing
Fortunately, we didn't have to wait for the administrative processes to be completed to start our preparations. As soon as we received the keys to our flat, we started to furnish it.
Already during the visit period, we were shopping around to compare prices and find everything we needed (furniture, electronics, kitchen equipment, accessories, decoration,...). We made a list comparing prices from several brands, shops and websites for about a hundred items to ensure the best value for money.
The flat was new and therefore empty, except for the toilet bowl and the sinks in the kitchen and bathroom.
The hardest thing about furnishing it was to not to get carried away by our emotions: although we were going to live there from time to time, it was not the place where we would spend the rest of our lives. It was an investment and the flat didn't have to contain the most expensive and elegant furniture. It just had to be comfortable enough for travellers to stay for a few days in comfort and leave us a great review on Airbnb. The items also had to be of sufficient quality to last for several years without having to replace them.
We had all the furniture built by a carpenter for a total of €1,150. We also had the lamps installed, painted the flat and bought pictures from a local photographer to hang on the walls.
Nieilly found small decorations, created by local artisans, and sent a sketch of a work of art on paper to an artist to paint on one of the walls in our flat.
We installed an electronic lock to facilitate access for travellers at any time of the day or night. We advise all future hosts to install this type of lock to avoid having to be present to greet travellers. You simply need to change the code each time a guests stays at your place, but many locks allow you to do this remotely via an app.
All the planning and furnishing of the flat in Maceió was done with an excellent architect, who drew up the plans for both the construction of the furniture and the decoration of the flat.
In the end, the total cost for our flat in Maceió came to around €50,000. This amount includes the legalization of the property and the different expenses for furniture, electrical installations, painting, accessories and small details that contributed to create a comfortable and welcoming environment for the travellers.
Details of all furnishing costs:
KITCHEN - 1 273,66€
- Fridge: 381,51€
- Waste bin: 33,83€
- Plate coasters: 5,59€
- Blender: 20,58€
- Glasses (normal and for wine): 28,31€
- Gas connection: 26,66€
- Tupperwares: 6,66€
- Plates: 43,31€
- Toaster: 16,65€
- Microwave: 99,83€
- Kitchen hood: 44,98€
- Table: 145,99€
- Cutlery: 33,33€
- Pots and pans: 31,65€
- Oven and cooking hobs: 199,12€
- Chairs: 155,66€
BEDROOM - 1 536,36€
- Television: 183,45€
- Mirror: 176,16€
- Bed and mattress: 454,29€
- 10 x bed sheets: 233,80€
- Hangers: 5€
- 4 x pillows: 84,66€
- Air conditioning (+ installation): 399€
BATHROOM - 425,43€
- 5x Bath towels: 56,95€
- Hair dryer: 7,49€
- Soap and towel holders: 49,46€
- Waste bin: 15€
- Shower door: 78,33€
- Mirror: 40,50€
- Toilet seat: 34,44€
- Hand shower: 74,74€
- Shower head: 55,81€
- Installation of the shower: 12,71€
LIVING ROOM - 1 549,55€
- Sofa bed: 363,44
- Coffee table: 96,66€
- Carpet: 116,66€
- Artwork on the wall: 45,65€
- Television: 287,48€
- Footstool: 63,33€
- Waterproofing of sofa and footstool: 46,66€
- Wine glass cabinet: 42,96€
- Air conditioning (+ installation): 486,71
GENERAL - 2 479,76€
- Shelves for decoration: 56,30€
- Furniture by carpenter: 1 237€
- Doormat: 9,57€
- Decorations: 38€
- Lights: 140,70€
- Changing the door lock: 10€
- Power outlets: 2,16€
- Installation of lights: 78,33€
- Various installations and assemblies (tvs, table, bathroom stands, frames, clothesline): 35€
- Electronic lock: 71,52€
- Curtains and blinds: 533,33€
- Painter: 83,33€
- Paint: 48,15€
- Cleaning products and equipment: 75,57€
- Ladder: 19,15€
- Hoover: 24,99€
- Iron: 16,66€
TOTAL: 7 264,76€
Note: in the case of an older flat, the costs of furnishing will be lower as many of the items, such as lights, cupboards and power sockets, will already be installed.
APRIL 2021 JUNE 2021
Last step:
Renting out the property
Then it was time to create our listing on Airbnb.
We read a lot of articles about creating listings and looked at many on Airbnb to get an idea of what ours should look like.
We mixed horizontal and vertical photos and took into account having enough "functional" photos to show the flat clearly, but also "charming" photos to highlight the welcoming side of the flat.
We also took photos of the building's interesting spaces (gym, party room, pool, patio, garage, lift and reception) and added some atmospheric photos of the Alagoas region (without overdoing it: the traveler looking at your listing has probably already seen photos of the area they plan to visit. What they want to see is what your space looks like).
We took care to take the photos in daylight with good lighting and without any intrusive objects in the field. In addition to the pictures, we added important information such as the description, amenities, check-in and check-out times, and property rules (no parties, no pets, etc.).
Then we put the listing on Booking, VRBO and Tripadvisor, ensuring that calendars are synchronised so that dates are automatically blocked on one platform when booked on another.
We emphasised what makes our apartment unique: modern, close to everything (supermarket, pharmacy, beach, everything accessible by bike), self check-in, covered and guarded garage, swimming pool, 24-hour receptionist, gym in the building. For the prices, we compared those of the flats in our area and adjusted accordingly. As we did not have any reviews or ratings yet, we started with low prices.
Airbnb boosts new listings and advises to offer a discount to the first visitors. Our first travellers were a very nice couple who left us a perfect 5/5 rating and a positive review, which quickly attracted more bookings.
We manage the cleaning with a quality laundry service and a team of reliable cleaning staff. We also provide small gifts to make travellers feel at ease (such as bottles of water and chocolate). Over the last two years, we have welcomed more than 150 travellers on Airbnb and our 5 star rating has never dropped, with 45 ratings and reviews, all positive. We have been proud to be superhost for over a year and maintain this distinction through transparent communication with our travellers and consistent satisfaction.
Profitability
We will let you judge for yourself whether our investment is profitable.
Here are our revenues and profits from the moment our flat was rented out, in June 2021, until January 2023, as well as the costs and profits generated in January 2023.
Our monthly income and profits (in €):
Costs and revenues for January 2023 (in €) :
Of course, you can get similar rents for a property in Belgium, but the acquisition cost will be four to six times higher, especially in the big tourist cities such as Brussels, Antwerp, Ghent or Bruges (the ones that are really interesting for short-term rentals in Belgium). Moreover, to get an interesting return on investment, you often need to have a large deposit and pay back the bank for 20 to 25 years. Finally, the rules for short-term rentals in Brussels are becoming increasingly restrictive.
To get almost the same benefits, it seems more advantageous to invest in Brazil, doesn't it?
In summary
Price of the flat (December 2020): 42 050 €
Furnishing: 7 264,76€
Legalization: 1 500€
TOTAL : 50 814,76€
Annual income: 9 500€
Current selling price (January 2024): 95 000€
The purchase of our flat in Maceió has proved to be a winning decision for us, offering an excellent return on investment. We have no regrets and even intend to buy another property this year.
Thanks to the real estate boom in the Alagoas region, the value of our property purchased for €50,000 is now €95,000. This investment strategy not only helps us to generate monthly income, but also allows us to save money for our future residence in Belgium, while growing our wealth.
If you are looking for a profitable investment opportunity and want to avoid the hassle of rental management, we are here to help.
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