Ecocity Brasil is located in the stunning Northeast region of Brazil and is set in a spectacular 20,000 acre (80 million m2) site, over 60% of which will be set aside for a stunning Nature Reserve.

The Master Developer for the Ecocity project is Grupo JR, a major Brazilian development company with extensive projects and experience in Brazil and worldwide.

• Invest from £20,000 with estimated profits of 174-275% based on comparisons with similar resorts in Brazil.
• You buy the land at pre-planning prices and when the Detailed Master Plan is approved you have the opportunity to sell the land and take the profit or keep the land and build your own property – to sell on if you wish.

* All land purchases are in Brazilian Reals. The Sterling and Euro prices are approximate and may vary.

Ecoland Brasil

The Conceptual Master Plan for the overall development of Ecocity Brasil was approved by the State of Piauí in January 2008 for the 80million m2 site (20,000 acre) permitting ‘urban expansion’ i.e. it is zoned or classified to permit ‘urban development’.

Planning permission for each of the 30+ separate developments within Ecocity Brasil will be sought and granted on an individual basis always within the guidelines stipulated within the Conceptual Master Plan.

Ecoland Brasil and its team of local and international experts are currently preparing a Detailed Master Plan for Ecoland Brasil’s Development. It will offer a variety of building plot sizes supporting detached, semi-detached and multi-unit residential housing, hotels, commercial outlets and a wide variety of recreational facilities including an 18-hole golf course, driving range and more.

The Detailed Master Plan is expected to be submitted for approval in 2011. It is anticipated that full and final approval will be achieved within 12 months following submission

Why Landcorp?

Landcorp International undertakes years of due diligence before choosing to promote a new project  As a company we only introduce investors to land that is earmarked for future development. Unlike companies promoting greenbelt, protected land or land with no clear path to development, Landcorp only promotes land designated for development.

Landcorp also only refers investors to development companies that retain a large interest in the land. This is a strong indicator of the development company’s commitment to the project and the vested interest propels the company towards securing vital authority approval.

If you’re looking for grounded advice from leading property portfolio managers and experts in the field, and you want to stay on top of residential land investment trends there’s no other information source that covers it all.

Let us help you navigate through the maze and build a foundation for residential land investing that will strongly benefit you or your clients over the coming years.

To read more about Ecocity Brasil visit: www.ecocitybrasil.fairdealinvest.com

To keep informed about the latest news on residential land development investments subscribe the FDI Property Investment Newsletter

Reasons to invest in land

• possibly higher profits
• less risk - imagine your land got hit by a bomb, it is still a land anyway.
• greater flexibility for maximizing value - you can plan your dream project on it.
• easier and simpler investment management
• land is real – it is tangible, can be visited, seen and walked on
• land is a finite resource
• land increases in value due to demand outstripping supply.

Land changes in value simply due to the whim of mankind. When the local authority suddenly approve a new project on an abandoned land, it could becomes worth over 10 times! What other investment could possibly achieve high return at no extra cost to you at no risk?

There is a simple piece of advice I got from my uncle in Johor. He invested heavily in palm oil estate. He hinted me that when human population is getting bigger, and global warming increases the sea level, the remaining land will become less and less on earth over time. Buying a land as a long term investment is definitely worth it. This is a direct logic which is very true.

Land Valuation

Compared to houses and commercial buildings, land is much trickier to value because its values varies greatly by what it can be used for. Historically, there is a formula which is that of the houses selling price, 1/3 was the land cost, 1/3 was the building cost, and another 1/3 was the cost of marketing, overheads and also profits.

Recently, with house prices spiraling upwards, plus the competition amongst developers, the profit margins have been reduced from time to time. You will most likely find the formula had changed. For example:

Buy a land, must remember these:

• always buy freehold unencumbered land (free of mortgages, caveats or charges).
• always get the land registered in your name with the government land registry office
• get 100% ownership of the plot and full legal ownership, with the ability to sell it at any time to whomever you want and at any time or price you desire.
• settle for nothing less, any doubts of fancy clauses just walk away from it.

Useful Links:

• Land Investment Brazil (Ecocity Brasil)
• Land Investment Brazil (White Sands project)
• Land Investment Canada

Ten years ago, the majority of property investors focused on other markets. Many European markets were witnessing a real estate boom rarely seen before in history, and countries like Spain, Portugal and France saw a large influx of foreign buyers looking for holiday homes in the sun. Along with the growing popularity, the cost of coastal land in these countries increased rapidly as well, and many savvy developers started looking at new areas for land banking investments where they could invest part of their profits.

One of these new areas that caught the interest of property developers was Brazil, and especially the coastline in northeastern Brazil. In those times, foreign developers perceived cost of land in Brazil as very low, and an increasing numbers of foreign developers started to invest in large pieces of Brazilian coastal land for land banking purposes. Many applied for building permissions for beach and golf resorts on the acquired land, and even though some did so with the intention of actually developing future beach resorts, this was mainly done in order to add value to the land.

This “first investment wave” consisting of mainly land banking investors, usually happens in the very early stages when a destination is perceived as having future real estate potential. Brazil has long been seen as a promising future market for holiday home buyers, and the lank banking phase usually takes place long before the actual end user market starts to invest in properties in the area.

In recent years, a “second wave” of land speculation has been taking place, where foreign owned groups have acquired land parcels in mostly deserted areas along the coastline in northeastern Brazil. Typically the land developer splits the land in smaller lots of around 500m2 and markets these for prices that seem appealing to novice land investors with little know-how of Brazil. However, investors are advised to learn about the real market fundamentals before making any investment decisions.

Demand drivers for land in Brazil

Moving on from speculative land banking, most end users buy land in Brazil either for residential living or holiday home purposes. In each scenario the demand driver is the end-user market that has a real need and desire for a property in the area.

There have been several very successful residential plot projects from large developers in Brazil. In these projects the land developer typically sources large land parcels in the outskirts of the state capital, puts in infrastructure and facilities, and then their clients can build villas themselves on the plot. Prices of these plots are usually around 400-1000m2 in such developments, and are often sold for over 50 000 -100 000 Euros. These projects are often sold out long before the first houses have been built. The primary reason these projects sell out so quickly is that they fulfill a “real” demand, as the Brazilian population wants to live in an area that offers excellent infrastructure with easy and quick access to the city.

The second type of end-user who buys land in Brazil does so for building a property for holiday purposes. In this scenario, the end-user is interested in an area that offers a good holiday experience. This often means that the area, in addition to having beautiful beaches and nature, also needs to have infrastructure and amenities in place, like shops, bars and restaurants -otherwise the area will not be appealing to holiday buyers. The primary reason plots sell in these areas is that they fulfill a “real” holiday demand, as Brazilians and foreigners alike, want to have a property in this type of location.

Not all areas fulfill the holiday demand criteria

By studying the coastline along the coastline in northeastern Brazil a bit closer, it quickly becomes apparent that not many coastal areas actually fulfill this real holiday buyer criteria. Many areas in the northeast of Brazil are extremely undeveloped, and offer very little if any, infrastructure. In these areas, it could take well over 10-15 years before progress eventually comes their way, and they actually start to offer some kind of end user real estate demand.

Buying a piece of land in such an area is similar to gambling, as there are too many uncertainties, and it could well be that the area remains deserted for a very long time.

Some areas, though, have taken a different route, and have developed into popular holiday coastal villages with nice infrastructure. Among the most famous ones in northeast Brazil, are areas like Praia da Pipa, Porto de Galinhas, Arraial D’ajuda, Trancoso and Itacaré.

Don’t focus only on cost of land – Think about the potential sales price of a finished property on the land.

One of the biggest mistakes many foreign land investors make is that they only look at the price of the land. In order to illustrate this point, let’s look at a very simplified example of two different scenarios:

An investors buys a 500m2 plot in a deserted beachfront location for 19 900 Euros. He then decides to build a villa of 200m2 on the plot, for a total cost of 500 Euros/m2. Total build price comes out at 100 000 Euros, and including the price of the land, the total amount invested is 119 900 Euros.

The investor buys a 500m2 plot in an area with an existing tourist market for 50 000 Euros. The plot is not beachfront, but it enjoys a nice setting and is close to the beach. He then builds the same villa of 200m2 for 500 Euros/m2, and the total investment comes out at 150 000 Euros.

Many novice land investors will think the first scenario is a better land investment. The fact is, however, that cheap land tends to be in deserted locations with very little interest from a tourist point of view. The area is probably not very popular, and it is likely that the investor’s house has no appeal to any end-user buyer. In this scenario, the likely outcome is that investor will not be able to sell the house, or the plot, because there is no demand. In this scenario, even though the 500m2 might be bought for 9000 Euros, it still would not be a good investment.

The second scenario is completely different. A 200m2 house in a desirable location will always attract end-user clients, both for sales and rental purposes. Properties in highly desirable locations do not need to be beachfront either, as the area will offer many other attractions. The investor could probably sell the house for a decent profit, as the end-user market sees value in the property because of its location in a highly desirable area.

This is obviously a very simplified example, but it does clearly illustrate the importance of location. Unfortunately many novice land investors tend to only focus on a low purchase price for the land, and they forget about real investment fundamentals.

Summary:

When buying land in Brazil for investment purposes, it is very important to first ask yourself what makes the piece of land attractive for future buyers. Secondly, it is important to understand why a client would buy the land from you at a higher price than you initially paid.

It is easy to be lured by the cheap land prices being marketed by opportunistic land developers, but this can lead to you making the wrong investment decision. Land investing in Brazil can be very profitable, but instead of searching for cheap land, it is wiser to look for good value in an already popular area with existing end-user demand. Buying Brazilian land in a good and popular area, will assure that you have an exit strategy for your land investment in Brazil.

Useful Links

http://fdi-ecocitybrasil.com/

http://white-sands-brazil.fairdealinvest.com/

BEACH
Rumor has it that the designer Anouska Hempel’s long-awaited eco-resort, Warapuru, will finally open this year on Engenhoca beach in Itacaré. In the meantime, there’s no dearth of sustainable spots along the coast of Bahia, like the Itacaré Eco Resort (doubles from about $278), which sits on an old cocoa farm overlooking a gorgeous beach and has been certified carbon-free by a local organization. Just north, in Trancoso, is the new Uxua Casa Hotel (doubles from $474), a group of handsomely repurposed pousadas opened by Wilbert Das, the former creative director of Diesel; and in a federal nature preserve on the Maraú Península is Kiaroa, a resort built according to strict ecological guidelines but with plenty of Egyptian cotton sheets (doubles from $375).

ISLAND
Tourism to Fernando de Noronha, a Unesco Natural Heritage site 200 miles off Brazil’s northeast coast, is strictly controlled in order to preserve the ecological balance — 70 percent of the seven-square-mile volcanic island is a protected Marine National Park. Which is only one reason Fernando has taken off as the celebrity eco-hideaway du jour. Other draws include the luxe eight-room Pousada Maravilha (doubles from $678) and the rustic Pousada Zé Maria, which has unparalleled views (doubles from $336).

JUNGLE
Amazonian deforestation is, according to the South American tour operator Dehouche, responsible for around 20 percent of the country’s global greenhouse gas emissions. So the company started a fund to pay farmers not to cut down trees. In exchange for donations, Dehouche offers travelers the chance to see their efforts at work at farm stays in the village of Paranaíta in Mato Grasso.

For investment in Brazil’s Eco-tourist industry visit www.fdi-ecocitybrasil.com

The ratings agency highlighted that as banks release results for 2009, there is a clear indication that loan growth is in line with local economic growth. Brazil continues to go from strength to strength with Fitch projecting the Brazilian economy to grow by 5.5% in 2010. Such a rate is above the average of Latin America as a whole.

Fitch also commented that the Brazilian banking system had demonstrated great resilience whilst the economic downturn took hold across the globe. The solid policies and prompt response of regulators and government clearly aided Brazil’s swift recovery. Bank credit ratings have stayed remarkably stable during this period and are expected to continue on this trajectory throughout 2010.

Such recognition from the ratings agency in the strength of Brazil’s banking system will only bolster investors’ confidence. The expected growth in loan availability and accessibility is also encouraging news for those investors looking to leverage any property or land investment in Brazil.

Brazil’s Economic Growth Strong

Results for quarter 4 2009 have revealed that Brazil’s economy grew in line with expectations, recording 2% GDP growth from Q3 to Q4 2009, according to Brazil’s national statistics agency in Rio de Janeiro. This records the fastest quarterly economic growth for Brazil in 2 years. Year-on-year GDP growth to Q4 2009 shows an increase of 4.3%. Forecasts for Q4 growth were 2.1% whilst the average year-on-year estimate was 4.4%.

This latest encouraging news from Brazil is further evidence that the country is fast becoming a paragon of economic stability and prudence.  Forecasts for 2010 economic growth are equally encouraging.

RBC Capital Markets Inc. announced their forecast growth of 6% for Brazil’s economy during 2010, with an average 4.5% growth over the next 5 years. Nick Chamie, Head of Emerging Markets Research at RBC, said “Brazil is about to embark on a ‘growth miracle’ for the next 5 years”

And they are not the only industry professionals singing Brazil’s praise. A survey of 100 analysts published by the Central Bank on March 1^st has stated that the Brazilian economy will expand by 5.5% in 2010.

Source: Fitch Rating Agency, Reuters UK, Reuters US, Bloomberg, Business Week

Visit: www.fdi-ecocitybrasil.com

After the 1992 Earth Summit in Rio de Janeiro, Brazilian ecotourism began to grow exponentially and the country woke up to its eco-potential. According to official figures, 5 million ecotourists visit destinations like the Pantanal, the world’s largest wetlands, and Abrolhos, a coastal whale watching paradise. Ecotourism has generated $4.95 billion for the economy. The tourism industry in general grows by 3% a year, ecotourism is up by 15% and Bonito is experiencing 20-30% annual growth in its tourism trade.

Dorival Bruni, president of the non-profit Biosphere Society estimates that Ecotourism which is accounting for 15% of the travel industry, could make up as much as 50% by 2010.

Laura Rendell-Dunn, marketing manager for Journey Latin America, asserts that ecotourism is “very popular” among environmentally conscious holidaymakers.

She commented: “We all like to go on holiday but we also want to know that we are not causing damage. That is very much at the forefront of people’s minds when they travel now.”

The interest in cave tourism in Brazil also has grown quite a lot due to the technical enhancements developed at the conservation units of the country over the years. According to the Brazilian Cave Tourism Society, there about 2,800 registered caves and the institution acknowledges that the number is quite higher. From this total, 53 are considered as tourist sites.

Brazil has launched a two-step program to realize its ecotourism potential sponsored by the Inter-American Development Bank (IDB).The project began last year with a $13 million pilot program called Proecotur to prop up projects in the Amazon. $200 million countrywide program is planned to follow for the infrastructure improvements and to fund the private sector to develop specific attractions, accommodations, etc. Roberto Morao, president of the Brazilian Ecotourism Association (Ecobrasil) has said “Normally youask for the money first and see how things work out later, But we’re going to see how it works first and then move forward.”

An ambitious Pantanal Project includes an ecotourism component was launched in conjunction with the IDB. Embratur, Brazilian tourism agency hired the Terra consultancy in partnership with private IEB to make a comprehensive study of potential ecotourism sites around the country. Nearly 88 different eco-poles have been identified and local governments are launching independent initiatives to improve infrastructure and promote travel in these poles.

The environment minister Carlos Minc has introduced new policies to tackle climate changes. He has said that the government is promoting sustainable tourism and it’s good for Brazil because it generates a lot of money for the local communities. The efforts stem to overseas buyers who are investing in property in Brazil as well, according to Mr Minc, who believes that they are being made aware of environmental concerns.

Giselle Beyer Tho, who works for the German travel agency Gateway Brazil, noted that tourists often had to fly hundreds of kilometres to reach remote natural paradises. For Brazilians, ecotourism often meant simply experiencing nature, not sustainable and environmentally friendly travel, she said.

Beyer Tho said encounters with Brazil’s wilderness generally took place on excursions into the rain forest from one of the jungle lodges around Manaus, capital of the Brazilian state of Amazonas. But tourists, who had hoped to see animals, often returned disappointed because animals were hardly visible in the dense foliage, she remarked.

Conditions for wildlife spotting were much better in the Pantanal wetlands of south-western Brazil. After the rainy season, when the savannah is flooded, boat-borne tourists can observe capybaras – a large rodent – caimans, monkeys and various tropical bird species.

One lodge even guarantees that its guests will see jaguars on their outings, Beyer Tho said. However, Brazil’s only true eco-lodges were near Tefe, a small city in the heart of the jungle about a hour’s flight from Manaus.

Embratur’s Pedroso also pointed to the floating bungalows on the Amazon River near Tefe as exemplary. They use solar power, collect rainwaterand filter wastewater, he said.

What’s more, they have a social purpose: “We want to involve the local population so that people have an alternative to hunting, fishing, and slash-and-burn agriculture.”

While many tourists head to Brazil for its long sandy beaches, classic destinations such as Rio de Janeiro, Iguazu Falls, Salvador de Bahia and Sao Paulo still top the list. Seeing these sights alone keeps tourists occupied for a good three weeks because of the country’s size – and as “they want to lie on the beach for a few days at the end of their holiday to absorb what they’ve seen,” remarked Gateway Brazil’s Markus Meinhold. He said eco-lodges were mainly for tourists staying four weeks and longer or those on a second visit.

Second-timers might see what is probably Brazil’s most exclusive ecotourism spot: the Fernando de Noronha archipelago, in the Atlantic Ocean some 500 kilometres from the coastal city of Recife. The marine national park has been a UNESCO World Heritage site since 2001. With a little luck, divers in the park could seer turtles and dolphins, Beyer Tho said. But she pointed out that only 420 tourists were allowed onto the main island at any one time.