The Domestic Engine Powering Brazil’s Coastal Markets

Hey guys, Mikkel here,

One of the mistakes people make when they start building a real Plan-B is thinking they have to focus on one thing at a time.

One country.

One strategy.

One asset class.

However, that’s NOT how resilient lives are built.

The people who build the best Plan-Bs are the ones who don’t get fixated on a single region, but instead, actively seek out jurisdictional diversification. 

Resilient systems are not built through singular concentration.

They are built through intelligent jurisdictional diversification. 

They do not fixate on a single jurisdiction as though it must solve every problem at once. Instead, they deliberately seek out complementary exposures.

Different regions provide different advantages.

Different economies operate on different cycles.

Different asset classes hedge against different risks. 

While one country may be offering residency or tax advantages at a given moment, another country, like Brazil, may offer a completely different set of advantages.

One jurisdiction may offer financial structuring flexibility, while another provides hard-asset-backed income. 

The key is not choosing one over the other.

It is understanding how they fit together. 

Brazil’s Northeast, for example, does not compete with other strategic allocations in a portfolio.

It complements them. 

This is precisely the type of conversation that will be happening inside The Wealth, Freedom & Passports Conference when it kicks off in just over a week. 

The conference is not about promoting a single country as a Plan-B solution.

It is about helping serious families and investors understand how multiple jurisdictions and asset classes interlock into a rock-solid global strategy.

Tickets for the conference are still available, but we are now in the final stretch before the event begins, so if you’re thinking about coming, you don’t have time to keep mulling this invitation over.

Every year, there is a wave of people who wait until the last possible moment and then realize they should have secured their seat earlier.

That said, flights from most major Canadian and American cities remain very reasonable at the time of writing, and I reckon most of you could find your round-trip airfare to and from Panama for well under $800 USD… on the high end. 

If you are serious about building a Plan-B and understand the value of being in a room that will supercharge your offshore knowledge and network in days (not months or years), then you need to stop getting in your own way and make a decision.

At this point, it’s decision time.

You’re either coming to Panama to meet me, my staff, my partners (including my Brazilian partners Michael, Jan, and Bruno), and hundreds of members from the Expat Money Community, or you’re not.

If you’re in, here is where you get your ticket: ExpatMoney.com/Conference 

Let’s get into it,

Domestic Tourism: The High-Powered Engine Behind Coastal Demand in Brazil’s Northeast

Over the past several years, Brazil’s domestic tourism has grown steadily.

Tens of millions of trips are taken inside the country every year.

It’s a normal part of life in a country the size of a continent.

Brazil has geographical diversity, a large population, and a growing middle class that increasingly values travel, lifestyle, and time at the coast.

…and here’s what makes this important for investors like us:

Brazil’s coastal markets are driven mostly by Brazilians.

Families travelling during school holidays, couples leaving the city for a long weekend escape, and even young people relocating here to position themselves where the growth is happening for better work opportunities.

…the local labour markets in these regions are growing alongside the tourism numbers, and those workers need places to live, too...

From an investor’s standpoint, this matters enormously.

It means rental income is not dependent on a narrow base of foreign visitors.  

It means occupancy patterns are steady and predictable. 

It means equity appreciation is anchored in utilization rather than “boom and bust” style market behaviour, which is often the case with markets driven by foreign tourists. 

Unlike smaller countries that depend heavily on foreign tourists, Brazil’s tourism ecosystem is largely internal, meaning the majority of rental demand comes from within the country.

That changes the risk profile immensely. 

Markets that rely mainly on foreign visitors can rise quickly when global conditions are favourable… and fall just as quickly when currency cycles, flights, or international sentiment shift.

Take Canadians, for example: more and more are choosing to vacation within Canada because their dollar doesn’t go very far in the “historically popular” destinations anymore. 

Brazil’s domestic travel base behaves differently.

It does not depend on North American flight routes.

Nor does it depend on the European vacation seasonality. 

It depends on Brazilians…. and there are more than 200 million of them.

This is more favourable to investors like us because we aren’t relying on tourism boards or bloggers to shed light on Brazil’s Northeast in order to create a rush of eager travellers to come see it for themselves.

Brazilians across the country are already well aware of the beauty of the Northeast and don’t need to be told to visit or see it in a travel brochure to want to come.

People from all over Brazil are well aware of what Brazil’s Northeast offers as a vacation destination, and we are already seeing them flock here year-round.

…and they don’t just come once, to “check it off their bucket list”… 

They return time and time again.

Developers here (like my partners) are not building massive luxury towers aimed at piquing the interest of people who would otherwise allocate their capital to a place like Miami…

We are building practical, livable units designed for repeat use.  

That distinction is important because when a market is driven by end users (people who intend to stay, rent, or come back often), pricing trends tend to behave differently.

They rise gradually over time.

This is in contrast to other tourist markets that lack a domestic engine, where prices often spike when the region becomes “hot” and fall back to reality once the “buzz” has worn off.

If you’re an investor, trying to time those types of markets is a total crapshoot, and it’s a gamble I wouldn’t take.

Sure, you may hit a “Babe Ruth style” home run once or twice under this approach and experience a massive gain on your equity; however, more often than not, that is not going to be the case.

Nine times out of ten, you’re going to end up with an asset that is worth less than you paid for it and with rental occupancy that is a fraction of what you were expecting (just ask investors in a place like Tulum, Mexico, about this). 

In Brazil’s Northeast, investors aren’t betting on rapid tourism growth, nor are they expecting to double their equity overnight and walk away with a “quick win”. 

Investors who are already positioning capital here understand that travel and vacationing are habitual for Brazilian nationals and understand that family vacations are baked into the culture in a way that most North Americans aren’t accustomed to. 

…and habitual travel is what sustains real estate markets over time.

Instead of hoping foreign buyers drive up prices, you are participating in a market supported by internal scale. 

Instead of waiting and hoping for international demand to materialize, you are leveraging an already active domestic population as your client base. 

As market sentiment continues to shift from “underrated coastline” to “habitual destination,” pricing will follow and steadily rise to a point that the domestic market will still accept (and be able to afford).

This is exactly what you want as an investor: you don’t want your rental unit to demand such a high nightly rate that eventually the local market gets priced out and has to look for other, less-known (and less beautiful) destinations to vacation.

You want your rentals to be in line with what the market accepts as a fair value; this way, the demand is not going to fizzle out.

Simply put, you don’t want to price out your client base (even at the expense of stronger short-term upside). 

Construction Update: Ocean Views Are About to Come Alive

On the ground, the ocean-view project is entering its very final stages. 

Final interior finishes are being completed, and landscaping refinements are underway.

A small dune in front of the project is being partially adjusted to improve sight lines from the units. 

Additional landscaping is also being incorporated into the land to add privacy and give the entire development site a sense of lushness.

It’s natural privacy, strategically placed to preserve views.

Seclusion without isolation is the feel we’re going for here.

That’s exactly what’s being dialled in now.

This project stopped looking and feeling like a construction site months ago.

Today, it is just about ready to where we can confidently see that it is the type of place that people want to come to… and return to often.

Rentals are about to begin here, and very, VERY soon, those of you who already have an Ocean View Villa will begin to reap the fruits of your well-timed investment in the form of recurring, hands-free rental revenue.

…and to those of you who missed out when we first launched the Ocean View project…

Deal of the Week: One Finished (and final) Oceanfront Unit Is Available NOW

Opportunities like this don’t show up often… and when they do, they tend to disappear quickly. 

Not because they’re marketed aggressively (you are the only people hearing about this), but because they make immediate sense to the right buyer.

Right now, one completed unit is available in this Ocean View Villa project, exclusively for readers of Brazil Beachfront. 

Here’s what you’re looking at:  

• Full, unobstructed ocean views.

• 1 bedroom (bungalow style) 

• Direct access to the beach.

• Open-plan living and kitchen.

• A private deck.

• …and a private splash pool.

It’s intimate and set in a low-density development (there are only 12 villas here total).

The Ocean View villas were designed for people who want beachfront in the real sense of the word: I am talking about leaving your front door and having your feet in the water in seconds, not minutes… that’s the type of location we are discussing here.

When you’re this close to the beach, everything should flow toward the view, because here, that is the real gem of this location.

…and they do. 

You step out of the living area, and you’re immediately in the private outdoor space that showers you in the sounds and smells of the ocean.

Now that, my friends, is a selling feature that is globally desired.

…have you ever heard someone travelling to a coastal region say: “we prefer to be a couple of kilometres from the beach, the natural sounds of the waves crashing into the sand make it hard for me to fall asleep”.

Pricing and Deal Terms

The price on this unit is $117,000 USD, cash only (due to the fact that it’s already ready).

…and for readers of Brazil Beachfront, this UNIT WILL BE DELIVERED FULLY FURNISHED AT NO EXTRA CHARGE. 

That is a $10,000 savings on the furniture and equipment package you would otherwise need to pay for in order to get your unit ready for the rental market.

For $117k USD, you’re literally securing a turn-key asset that can be placed directly into the rental management system (managed by my partners), almost immediately.

Air conditioning, beds, sofa, silverware, linens.

The whole shebang, set and settled.

Everything you need to get your unit actively earning your consistent rental returns will be covered for you at no additional charge. 

Again: 

$117k (cash).

Fully complete.

Fully furnished.

(Just about) rental-ready.

For beachfront property with ocean views, private outdoor space, and a splash pool, that number should have you clicking here immediately to send my partner Michael an email to learn what you need to do to make this unit yours. 

…I assure you, in just a few short years, an entry point of under 120k in this region is going to be history.

This property can be (and will be) a cash flow machine for one of you reading this right now.

…but it won’t be if you take your sweet time thinking it over… 

If you want to earn hands-off, rental revenue every single month without having to give so much as a thought as to how your investment is performing, you need to write to Michael right now to discuss securing this unit.

You can reach Michael here: [email protected] 

It’s 117k.

It’s a steal.

Write Michael immediately if you want in. 

Speak soon,
Mikkel