Understanding Property Investment – Real Estate For Beginners

Understanding property investment is the most vital aspect of becoming a professional real estate investor. If you are just starting out in the Real Estate business then it is vital that you develop a good understanding of what is required when purchasing an investment property. Understanding property investment is the best way to feel comfortable about putting lots of your hard earned money into a home that you aren’t even going to live in. I am often asked “what is the best real estate for beginners tips that I know?”. Without doubt the best bit of advice that I can give you is to get a Real Estate education and truly understand property investment before you start buying houses.

To many people this advice will be quite straight forward but many of us want to run before we can walk. Some of us (myself included) decide that we are going to buy a house and then want to buy the first bit of property for sale that we see. Whilst this enthusiasm is great it is much more beneficial if you take things a little bit slower and develop a wide and complete understanding of property investment.

For instance should you buy residential or commercial property? What is stamp duty & how much will it cost me? What is capital gains tax & how much will it cost me? Where are the best Real Estate Listings? Which real estate agents should you talk to? There are many more questions that I’m sure you want to be answered but for now lets have a quick look at some of the basic concepts that any real estate for beginner books should (but don’t necessarily) cover. Once you understand these concepts you will be well on you way to completely understanding property investment.

1. Residential vs. commercial property – Which one is for me?

If you are just beginning in property then I would suggest that you stick with residential property. There are many great advantages to commercial property but it is generally slightly more advanced and risky. Lets face it, most people are going to know a lot more about what people are looking for in residential houses because they have all done it themselves- whereas not too many people truly understand what makes a great commercial property investment. Remember ‘Always play to your strengths’.

2. What is stamp duty & how much will it cost me?

Unfortunately you will be forced to pay capital gains tax on your investment property. The exact amounts vary depending on how much the investment property is worth but on average you can expect to pay about 5% of the properties value. For instance if you bought an investment property for $300k then you would have to pay about $15k in stamp duty.

3. What is capital gains tax & how much will it cost me?

Most professional investors never sell their investment properties so therefore capital gains is not an issue. You might be wondering “what the point in buying a house if you don’t plan on selling it?” You will be surprised to know that there a easy and legal ways of accessing your profits without actually selling your house.

4. Where are the best Real Estate Listings?
When it comes to Understanding property investment it is important not to over complicate things. Today there are hundreds of websites that have 99% of all real estate listings. This will save you hours and hours of work as you dismiss hundreds of houses that in the old days you would have needed to inspect personally.

5. Which real estate agents should you talk to?

All of them – If I can give you one bit of advice it would be this

‘Real Estate agents are your friends’
If you can get a good relationship with real estate agents it will make your job so much easier. Whilst they are working for the vendor it is in their interest to sell the house. Their commission won’t alter too much if the house sells for $300k or $350k but for you that is a massive difference.

So in order to truly understanding property investment it is vital that you get a great education. There is so much information available on the net these days that it is very easy to great high quality free information. So what are you waiting for – Find a good Real Estate for beginner’s book, read it, learn from it and then implement it. The people that truly understand property investment are the ones who will succeed.

An Overview Of Commercial Real Estate For Sale In Arraial D’Ajuda

If you are looking for real estate in a quiet and peaceful village atmosphere, not many places in Bahia can come close to Arraial d’Ajuda. This village on the discovery coast is situated on a cliff which overlooks some of the best beaches in the region. The lovely atmosphere attracts a lot of tourists and the affluent population from Brazil as well as other countries. There is plenty of real estate for sale in Arraial d’Ajuda with a wide range of options.

Despite the village charm, the town is close to the city of Porto Seguro which has an international airport. It has all the characteristics of a traditional village with traditional houses, charming outlets, hotels and little streets connecting the town center to the other places.

Real Estate Options In Arraial d’Ajuda – Overview

You will find farmhouses on huge plots of land. Some of them have wooded areas and some even have a forest cover.

Commercial real estate makes a lot of sense here considering the tourist traffic. You get everything from shops to hotels in Arraial.

For those who prefer to construct, land is also available with plenty of choices in both small and large plots.

Commercial Real Estate

Thanks to the brisk tourism business and the large number of visitors, commercial ventures targeting the tourism industry do very well. If you are looking to invest in commercial ventures like shops, restaurants, bars or apartment complexes for renting out, Arraial gives you many options. The price could start from as low as R$60,000 and go as high as R$1,800,000 with an average price of about R$909,200.

At the lowest end, for prices less than R$100,000, you will find small shops and spaces where you can open a café, bar or restaurant in the main village area or in downtown Arraial. Spaces to start a fairly large restaurant or shop can cost up to R$300,000. If your budget is close to R$800,000, you can consider fully furnished apartment complexes with essential facilities. These can then be rented out or sold individually.

Houses on larger plots ready with restaurants and other commercial outlets near good beach locations are available for about R$1,500,000. These are good for conversion into a small resort or for renting. Commercial complexes with multiple commercial spaces in prime locations on the main street could cost more than R$1,750,000 depending on the size.


The number of hotels available for sale in Arraial is a reflection of the huge number of visitors it receives every year. If you are interested in taking advantage of this by investing in a hotel, you have the choice of buying an already functioning hotel or a piece of real estate that has the required space and infrastructure to start a new one. Prices range from R$500,000 to about R$3,000,000 with an average of about R$1,424,000.

Below R$1,000,000 you will get good opportunities that are nicely located on the main street or near quiet beaches on plots of up to 2500 sq. meters and with up to 770 sq. meters of built-up area. You will get a piece of real estate with a mix of rooms, cottages or apartments in this range. Basic infrastructure such as parking, pool, etc. is usually available. Depending upon the price, you could get in addition a nice garden, air-conditioning, restaurants, bars, a library or other useful features such as Wi-Fi connectivity.

The mid range hotels are priced between R$1,000,000 to R$2,000,000 on plot sizes up to 6800 sq. meters and with up to 700 sq. meters of construction. You will get real estate with a mix of apartments, houses and cottages on the same plot. Some of the hotels may already be in operation and others are available with infrastructure in place to start a new hotel.

These mid range hotels are usually in very nice locations in town, near the beach, near the ferry or in an ocean fronting locality. Depending upon the package, you can expect fully furnished accommodation, air-conditioning, fancy multiple swimming pools, ample parking, playground, solar power, restaurant, bar, grill, reception, etc.

High end hotels in Arraial will cost you upwards of R$2,000,000. You will find these on the best seafront locations or some of the best in-town locations. Plots which range from 1000 to 2000 sq. meters and with construction of about 700 sq. meters can be expected. Just like the lower ranges, you will get a mix of apartments, suites and cottages with all previously mentioned facilities.

Real Estate For Sale In Imbassai – Great Location And Excellent Prices

Imbassai, a charming and peaceful village located near Praia do Forte probably offers one of the best investment opportunities on the Coconut Coast. The rustic coastal village, which is about 65 miles from Salvador airport has many of the same advantages that Praia do Forte offers, except that it is more peaceful and prices are significantly lower.

Imbassai has another advantage in that the development is very carefully planned. Real estate for sale in Imbassai mainly offers apartments, houses, hotels and undeveloped land.

The area has a rainforest and ecotourism reserve, and a long lovely stretch of sandy beach. The carefully planned development and undervalued land prices mean that the place is likely to see significant appreciation in real estate prices in the next few years.

Overview Of The Real Estate For Sale In Imbassai

Imbassai offers both apartments and houses. Prices of apartments start from R$150,000 and can go up to R$550,000. An average apartment is likely to cost about R$370,000. Houses are priced between R$330,000 and R$1,220,000. The price of an average house will be about R$715,000.

Farmhouses and commercial real estate such as spaces for shops and outlets are also sometimes available. You will find hotels in different sizes priced between R$450,000 and R$3,500,000. The average price of a hotel will be about R$1,695,000.

At Imbassai, with the right budget you can easily buy land as there are many plots and tracts of land on offer. Leaving out the extremely high priced offerings, an average plot of land is likely to cost about R$475,000. The range starts from about R$150,000 and can go up to R$2,000,000. Land that is very large in size and suitable for large commercial applications is also available at much higher prices.


Apartments can be divided into three ranges. The lowest range priced below R$300,000 consists of one bedroom apartments with reserved parking in nice condos located in the village. The condo may offer a pool, garden and some other leisure facilities. Round the clock security is usually offered.

The middle range is priced from R$300,000 to R$375,000. In this range you will get better locations and larger two bedroom apartments with maybe one suite. You can expect about 80 to 120 sq. meters of built-up area. Condos are located close to the beach, close to the green line or near the sea. You can also expect security, swimming pool, garden, parking, gym, barbecue, laundry, etc. as part of the common facilities.

Apartments in luxury condos and upmarket gated communities near the ecological reserve or close to the beaches will cost above R$375,000. You can expect fully furnished apartments with three suites, air-conditioning, maid room, central heating and reserved parking. Other features like pool, garden, playground, employee quarters, club, concierge, ballroom, etc. will be available in most condos.

Buying A House In Imbassai

The houses in the lowest price range will cost up to R$500,000. These houses of 150 to 250 sq. meters are constructed on plots of about 1000 sq. meters. Depending on the price you can expect one to three bedrooms or suites. You will also get some additional features like a small garden, kennel, garage and a service area.

Mid-range houses costing between R$500,000 to R$1,000,000 are located in quiet areas of the village or in condos close to the beach. You will get three to four bedrooms or suites in these houses with 140 to 400 sq. meters of constructed area. You are also likely to get a pool, well-designed large garden and parking facility. Houses located in condos provide round the clock security and facilities like party area, employee quarters, barbecue area, lockers, open showers, tennis courts, gym, indoor games and sauna.

The upmarket houses are priced above R$1,000,000 and are usually located in luxury condos near the reserve or between the reserve and the village. You can expect fully furnished houses with four suites, premium pool, large landscaped garden, playground and even more features than what is available in the lower ranges. You will get about 280 to 550 sq. meters of constructed area on plots of up to 1250 sq. meters.

Investing In A Hotel In Imbassai

Imbassai is a village with great tourism potential. If you are looking to buy a hotel to cater to the tourist demand, you will find many choices here.

At prices below R$1,000,000, you can expect to buy small inns with up to ten furnished rooms or cottages and facilities like pool, reception, restaurant, etc. which are expected in hotels. You will get about 250 to 500 sq. meters of construction on plots of up to 2000 sq. meters. Larger hotels with up to 25 air-conditioned rooms or cottages and better features will cost between R$1,000,000 and R$2,000,000.

For prices above R$3,000,000, you will get bigger hotels with a large number of well-furnished suites and located in the best places close to the river or close to the beach. You will also get all sorts of leisure facilities that you would expect in a premium hotel.

Buying Land In Imbassai

If you are looking for a 1000 to 2000 sq. meter plot for construction of a house, you can easily get them in the village or near the reserve for prices below R$400,000.

Larger plots ranging from 4000 to 10,000 sq. meters in size are also available and these are more suited to construction of an apartment building or a gated community. You can expect nice locations with sea view and the price will range between R$400,000 and R$1,000,000.

For prices above R$1,000,000, land is available in various sizes from 1.5 to 80 hectares. This type of land is located in areas suitable for a large housing community, a resort or other similar large scale venture.

Other Types Of Real Estate

You may find commercial spaces for setting up shops or small restaurants in strategic locations in the village. A commercial space of about 50 sq. meters should cost you about R$160,000.

Farmhouses which could run into hundreds of hectares of land and with a wide variety of vegetation are also available. The prices depend on the size, location, level of construction and the features offered.

Imbassai is a quiet village very close to Praia do Forte and not far from Salvador. It is an upcoming area with high development and growth prospects. It offers long unspoilt beaches and the development is carefully planned and controlled. Currently, land is much cheaper than neighboring Praia do Forte. So if you are looking for an investment with good capital appreciation prospects, take a look at the real estate for sale in Imbassai.