THE things the British know about Brazil could probably fit on a piece of paper the size of Gisele Bündchen’s bikini – it is a country in South America where flip-flop-wearing people dance the samba, play football, burn down the Amazon rainforest and do unmentionable things with wax.

But beyond the clichés, property buyers are discovering that there are new opportunities in parts of Brazil that never make it on to the television news or the catwalk.

Take Natal in northeast Brazil, for example. Sunshine is guaranteed all year round, the cost of living is low and property prices are rising. It is the biggest city in Rio Grande do Norte, the part of Brazil that sticks out into the Atlantic and the closest point in South America to Europe. Those who have not heard of it yet soon will. Thanks to a huge marketing campaign by the Brazilian tourist board, the number of foreigners visiting Rio Grande do Norte grew by 130 per cent to 1.7 million in 2004. Thomson now flies direct to Natal from the UK and a new airport is due to be completed in 2009.

Yet, despite the boom in tourism, property is still cheap by European standards. You can buy a beach house for less than £60,000 and investors, such as Christine Lea, are pouring in.

“We knew that northeast Brazil had the best climate. We realised that British tour operators were going into the area, and when that happens property-seekers follow,” she says. “What we had not realised was that the Scandinavians have already bought huge chunks of land. They love the sun and the laid-back life. The Brits have not caught on very quickly.”

There is still plenty of beach on which to lay your towel. Brazil has a long coastline and some of the most spectacular beaches are in the northeast. Natal has been particularly blessed with Ponta Negra and Pipa. Ponta Negra, Natal’s beach hotspot, was little more than a fishing village until the 1990s when foreigners, mostly Portuguese and Italians, started investing in the area. Hotels, restaurants and shops opened as tourism flourished. The 4km (2½ mile) beach is framed by the Morro do Careca (Bald Man’s Hill), a landmark sand dune. The city itself is still relatively quiet. There are no skyscrapers, the atmosphere is relaxed and crime is low. The surrounding area is also a draw. Pipa, regarded as one of the best beaches in the country, is just a day trip away.

Christine and her husband Peter combined a holiday with a house-hunting trip last year.

They put in a lot of legwork to find their three-bedroom home in a village 45 minutes’ drive south of Natal. “We saw a lot of rubbish. Brazilian beach houses often look OK from outside, but inside they are made up of concrete beds and chairs. This is because the houses get damp and are often left for long periods,” she says. “If you wanted to do up a property, there is lots of potential to find something cheap.”

If you are buying from overseas, prices will be quoted in euros or dollars, and it is worth doing some research to make sure that you are not being overcharged. The cost of property can vary enormously.

Many of the houses for sale are being built in “condominiums” – gated communities where there is a service charge. Although you can end up paying more than for a stand-alone house, the property will be looked after while you are away and it might be easier to let out if you are looking for a rental income. Flats are also popular, and you could find one in Ponta Negra from €70,000 (£48,000).

The newest developments are springing up in the villages north of Natal where, until recently, land was cheaper and more abundant than towards the south, which is more developed. One of the biggest schemes is being built by the Spanish developer Grupo Nicolás Mateos at Lagoa do Coelho, a large lagoon about one hour’s drive north of Natal.

It is very early days and details are patchy, but there are plans for 30,000 homes, a marina, golf course, sports centre, spa, heliport, shopping centre and a plastic surgery clinic where ten surgeons will operate. The gargantuan project is being touted as the ultimate exclusive resort where wealthy Europeans and Americans will flock for a bit of nip and tuck.

The first phase is due for completion next summer and flats are on the market from €81,216 to €130,758. The developer claims that prices here are set to rise by up to 10 per cent a year. But you can buy property on the seafront for a third of the price.

At a far smaller new resort at Paraiso Farol, which is closer to Natal, three-bedroom villas start from €54,000. There are no plastic surgeons here, but the beach is stunning.

Surfing the internet will reveal several other developments aimed at the foreign buyer. But nothing can replace going to Brazil and catching those big Atlantic waves for real. Just remember to pack your flip-flops.

Paraiso Farol: 01202 734612 myhouseinparadise.com Grupo Nicolás Mateos: 020-7872 5587

For the hottest locations to own an overseas holiday home, go to timesonline.co.uk/overseasproperty

BEACHGUIDE

To buy property in Brazil you need your passport and a tax identification number, known as the CPF, which you can obtain from the Brazilian Embassy.

Tourists can stay up to 180 days a year in Brazil. You need a permanent visa if you want to stay longer.

When you buy a property you must register it with the public notary. You also pay 3 per cent of the value of the property in tax. The notary’s fees vary but will be roughly 2 to 3 per cent of the property’s value.

Estate agents, known as “immobiliárias”, vary. See as many as possible. Some may specialise only in one type of property, such as off-plan new-builds. Sellers pay the fees.

Just Brazil is a UK-based buying agency (www.justbrazil.co.uk). Other useful websites include www.viviun.com and www.brazilestates.com.

To search for properties on sale in Brazil on propertyfinder.com click here

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