Have you ever imagined renting a mansion or an apartment luxurious no Rio instead of staying in a super hotel? This is what the Rio Exclusive, luxury real estate agencyreference in the rental and sale of accommodation Lux in Brazil. The idea works as an alternative to traditional five star hotels, in addition to the company offering differentiated and personalized services, such as full-time chefs, bartenders, personal drivers, among others. We interviewed the co-founder and CEO of Rio Exclusivethe Frenchman Arnaud Bughon, and which you can check out below:
1. How does Rio Exclusive’s sales and rental service work?
A Rio Exclusive is a high-end real estate agency focused on renting and selling luxury properties and with reference in the real estate market in Rio de Janeiro. The majority of property owners are Brazilian, but there are also many foreigners who, as they are unfamiliar with Brazilian bureaucratic processes, resort to our private services. Once hired, we carry out all mediation between owners and potential buyers or renters, in addition to providing a complementary consultancy, concierge and executive relocation service that covers much more than just real estate negotiation.
In the case of rental, there are two types of service: short-term and long-term. In the first hypothesis, our focus is tourists looking for a more exclusive travel experience than that offered by a hotel. Long-term rentals are aimed at those clients who need to stay in Rio for longer than three months, such as executives and consultants from large companies, for whom we offer relocation services. In any of the modalities, our properties are selected based on strict quality criteria, ensuring both customers and owners a worry-free rental experience.
2. What do tourists gain by renting a property instead of staying in a hotel?
Our company focuses on the “high luxury”, we know that our clientele is very detailed and demanding when choosing. Therefore, when selecting our properties, we carefully evaluate the privileged location, design, security and exclusivity. In addition, we provide our customers with a customized concierge service, for example, offering amenities such as a chef, private driver and maid. When a client chooses to rent a Lux in Rio, he is certainly looking, not only for the Lux offered by hotels, also for privacy and the “home feeling”, that is, a more cozy and personalized accommodation. This is the essence of Rio Exclusive: offer the Lux equivalent to that of a 5-star hotel, with the comfort of our services. This is possible because we have a highly professional team fluent in 8 languages, including lawyers, architects, accountants, receptionists, drivers, among others, which represents our great difference. The end result is the satisfaction of our customers and the recommendation of Rio Exclusive to their families and friends.
3. What price are we talking about properties from?
Our most economical properties have a minimum daily rate of US$100 (US dollars) during low season. From there, prices vary greatly, until reaching the most exclusive properties that someone can rent in Rio de Janeiro. But it is important to know that this variation depends mainly on size, design and view, as all of our properties are located in the best areas of the city, are new or recently renovated and all offer our exclusive services.
4. How is the service and security part?
We make a point of guaranteeing our clients that all properties in our portfolio are safe. In fact, this is one of the most important criteria when we select new properties, as we know that it is one of the concerns of tourists who come to Rio. Therefore, the absolute majority of the buildings in which our apartments are located have a doorman and private security 24 hours a day. day, seven days a week. For those who want even more exclusivity and prefer to always be accompanied, we offer executive car services with private security, helicopter, speedboat and yacht rentals.
5. What is the minimum stay in an RE property?
For short-term rentals, our minimum stay is three nights. We consider rentals that last from three nights to a maximum of three months to be short-term. From then on, it is a long-term rental.
6. What are the prerequisites for those who want to buy a property outside Brazil?
The United States financial crisis in 2008 and recent European economic problems boosted the overseas real estate market. Proof of this is that, currently, more than a leisure option, buying property outside Brazil is a very attractive investment alternative.
The property acquisition process is very simple and not very bureaucratic, especially in the United States, which makes it easier for any Brazilian to buy a property, as they only need to have a passport with a valid visa, even if it is a tourist visa. It is not necessary to have American citizenship or residency (Green Card) to purchase in cash. For the approval of possible financing, the requirements vary depending on the institution, and the requirements include proof of income, counter checks and bank account balances. But it’s worth a warning: simply purchasing a property in the country does not guarantee the buyer citizenship; This is done through another process with the consulate.
After presenting these documents and proving that the money is available in the buyer’s account, a draft contract is drawn up, and the money is sent to the United States. It is possible to finance up to 70% of the property; Still, the vast majority of buying and selling transactions are carried out in cash. If financed, the down payment can be from 30% of the value, subject to credit approval and with varying interest rates, but relatively low compared to Brazilian rates.
The disadvantage of financing is exchange rate fluctuation, which, in some cases, can double the installment, but this is a particular assessment of each buyer.
There are two financing programs for Brazilians. Conventional, with financing of 70% of the value of the property in up to 30 years and fixed annual interest of 5%; and the Adjustable Rate Mortgage (ADM) – something like an adjustable rate mortgage, in a free translation – a fixed interest program for five years and adjustable after that period. In this case, financing is also 70% of the value of the property, for up to 30 years, average annual interest estimated at 4%.
It is also necessary to prepare three letters of reference for financing:
a) The first must be written by an accounting firm to describe the buyer’s income in recent years and the income forecast for the current year;
b) The second is a letter from the Brazilian bank that demonstrates the customer’s financial health;
c) A final letter must contain the credit history that the customer has paid on time, such as for a car, or some other valuable asset.
7. Is Brazil an important market for RE?
Yes, Brazil is one of the main niches for RE, as 30% of our clientele is Brazilian. Since last year’s World Cup, we have seen an exponential increase in the demand for real estate by Brazilians, this is because the more expensive and fluctuating dollar compared to the real tends to favor domestic tourism, so many Brazilians have increasingly considered Rio as the ideal holiday destination.
8. What are the most popular destinations for Brazilians?
Rio de Janeiro is one of the favorite destinations for tourists, both foreign and Brazilian, because it combines the comfort of a metropolis and a paradisiacal setting in one place. Furthermore, more and more Cariocas who receive guests have come to us, because, instead of having them at home, they prefer to rent properties to accommodate their guests. We also hold large events for companies based in the city, as well as for people who, for whatever reason, prefer to keep the event they are organizing private. This is the main reason why many important and famous people seek our services because they want more peace of mind at their parties and meetings. Another very important part of our property portfolio are the small cities on the Brazilian coast, which have become increasingly famous in Brazil and abroad, such as Búzios and Paraty. Because they are close to Rio, they are also our main focus, in addition to several other properties spread across the Northeast coast.
9. What changed after the World Cup?
During the World Cup, we had an increase of around 300% in the average number of reservations compared to previous years. This year, our main focus has been preparing for the 2016 Olympics. Publicity work has been extremely important too, as Rio has been in the spotlight around the world since last year. We consider the World Cup a great barometer for major future events. Our goal continues to be to increasingly improve the quality of services while maintaining an international quality standard. Furthermore, we are preparing for the post-Olympics period, in which corporate demand is expected to grow even more thanks to the real estate boom that the city is experiencing and the consolidation of Rio as a great business capital. A solid post-Olympics, with the formation of a department focused solely on these clients, has also been a fundamental objective for us.
10. Did the crisis affect Brazilian clientele?
Honestly, the “crisis” affected us in a positive way, because, with the rise in the dollar, we have observed daily that many Brazilians have chosen to travel within Brazil, thus avoiding losing money with the real in constant decline. Furthermore, foreigners have also chosen to travel to Brazil, where they can consume more while spending less. Within this scenario, we can say that the real estate sector in Rio de Janeiro is far from being in crisis, quite the opposite; With the preparation for the Olympics, the market has heated up and demand for properties has been high. In fact, when it comes to major world events such as the World Cup and the Olympics, the tourism sector, in general, ends up being somewhat “armored” in relation to this gloomy atmosphere brought about by the economic crisis, as we know that tourists At this time, all he can think about is following his country closely.
Service:
Rio Exclusive – site
Telephones: 21 97606 8926 / 21 2137 9786
By Renata Araujo
Photos: Disclosure
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