Fortaleza, Brazil

The market starts at about US$44,000 at today’s exchange rates. For this price you’ll get a two-bedroom, two-bath unit with one garage space in Aldeota, in an older building without much of a view.

Aldeota is a good option for full-time or seasonal living. But for vacation living or a vacation rental, you might prefer the beach. You can find ocean view property in Praia Iracema for US$91,000.

The adjacent Praia Meireles, a nicer area, starts at about US$112,000 for a non-beachfront, ocean view unit. Beachfront ocean view units start at around US$200k.

Within Meireles there are high-spec luxury buildings—like the Landscape project—that sell for the higher end of that range. In a top-end building, expect to spend between US$200,000 and US$525,000 for their beachfront, ocean facing units.

Keep in mind that Brazilian apartments are typically smaller than what Americans or Canadians will be used to, with most under 100 square meters (1,076 square feet). Appliances are often not included in the sale, unless specified.

When renting out your unit in Fortaleza, you’ll be pleasantly surprised to find that the long-term renter pays the condominium fees rather than the owner. This applies to HOA fees used to maintain common areas and amenities.

The tenant is not required to pay fees assessed for building capital improvements or replenishment of the contingency fund. The tenant also often pays the property tax, although this is not required unless it’s included in the rental contract.

For long-term (annual) contracts, you can expect a net return of between 5% and 5.5%, allowing for maintenance costs and a half-year of property taxes (since not all contracts require payment of property taxes).

Short-term rentals were only slightly better. The gross income can be much higher, but you will have to pay short-term property management fees, condo fees, and property tax on short-term rentals.

Fortaleza is a good bet for the second homeowner who wants sophisticated city living with a beach at your doorstep… along with a super-low cost of living.

The potential for capital gains in Fortaleza is good, but there is even more potential gain if the currency returns to pre-pandemic levels. The currency trends will be in the investor’s favor… but remember that currencies can go either way, without apparent logic.

Fortaleza is a real bargain by world standards right now. You’ll be hard-pressed to find this level of sophistication, in this climate, at these prices, anywhere else.