Real Estate in Brazil - NYTimes.com This two-story house with cerulean blue shutters and a Spanish tiled roof is set on a lush mountainside in Tres Rios, a picturesque farming area 55 miles from Rio. The coffee plantations that dominated the region in the 1800s inspired the design of this 1993 concrete and stucco house, which was fully renovated in 2008. It has seven bedrooms over more than 9,150 square feet, and its rolling grounds include horse breeding and boarding facilities, a eucalyptus plantation, a distillery, springs, groves and sugar cane fields. The house is surrounded by bright flowering bushes as well as palms and other fruit-bearing trees that attract exotic birds like Macaw maracanas and toucans. Flooring throughout is Brazilian hardwood, except in the kitchen and baths, which are lined in Brazilian Brennand tile. The large, open living room on the first floor has a double-height ceiling of slatted Brazilian hardwood and a large stone fireplace. Opposite are three pairs of French doors opening onto a veranda with views of the tropical forest and the Serra do Rio de Janiero mountains. The kitchen, behind the living and dining rooms, has taupe marble countertops, a gas stove, and a refrigerator and dishwasher from the Brazilian company Brastemp. Also on the first floor: a game room, a small TV room, two baths, a laundry room, and a maid's room. On the second floor, directly above the fireplace, is an open corridor with a railing that overlooks the living room. Two of the six bedrooms off the hallway have en-suite baths; the other four bedrooms share two baths. Behind the house is a triangular grassy expanse with a spring-fed swimming pool; beyond is a building with a Spanish tiled roof that houses a fully equipped gym, steam sauna and bathroom. Its tiled outdoor eating area has a pizza oven and a barbecue. The scent of eucalyptus permeates the air because the property includes a 15-acre plantation, though the trees are not currently harvested. "Not only can we smell it," said Christophe Bénichou, the owner, "insects smell it, so we don't have flies." Bugio monkeys make frequent visits. Mr. Bénichou recently snapped a photograph of a monkey sitting on a windowsill. "They are the size of our Labrador," Mr. Bénichou said. Pretty big monkeys, but completely friendly, and they don't come close. The previous owner harvested the sugar cane on the property to make cachaça, the key ingredient for caipirinhas, the Brazilian cocktail. The 25 barrels of cachaça inside the distillery have been aging for 15 years, and they come with the house. "Each year it becomes better, like cognac or whiskey," Mr. Bénichou said. The property has three additional secluded houses that could be used for staff or guests. Each has 860 square feet of space, with two bedrooms, a living and dining room, a kitchen, a bathroom and a terrace. Tres Rios is a farming and ranching area, as well as a vacation retreat for Rio residents. The historic city of Petrópolis, known for its 19th-century architecture, is less than an hour's drive and attracts a steady flow of tourists. Rio beaches are an hour and a half away. The housing market is extraordinarily robust. "Prices not only remained stable, but increased, even dramatically," said Dr. Andreas Hahn, who with his wife, Elaine Claudia de Almeida, owns Hahn Imoveis Brasil, the real estate company listing the property. Dr. Hahn, an economist, noted that because of Brazil's restrictive lending policies, buyers in the late 2000s were prevented from borrowing beyond their means, unlike those in the United States and elsewhere. Alessandro Jacob, a lawyer in Copacabana who specializes in real estate, said Brazil remains a buyers" market, although the best time to buy was about two years ago, as current prices are 30 percent higher. Dr. Hahn concurred, though he points out that it's still an excellent time to buy, as prices will only continue to rise. The next World Cup and Olympics, to be hosted by Brazil, are also generating investments, infrastructure improvements and enhanced crime-fighting measures. Brazil attracts buyers from many countries. Dr. Hahn says they tend to come from France, Britain, Germany, Switzerland and Italy, with a recent demand from Russia and China. There are some restrictions on foreign buyers, though they generally apply only on properties larger than 123 acres. There are none on this Tres Rios property. Foreign buyers are required to have a tax number, which is easily obtained. Hiring a lawyer is not mandatory, but Mr. Jacob strongly recommends it; the cost is roughly 2 percent of the sale price. As for financing, Mr. Hahn recommends that foreigners obtain it in their home country. "Brazilian banks hardly give loans to Brazilians," he said. It's even more difficult for foreigners. City of Rio de Janeiro tourism: rioguiaoficial.com.br/en/ Rio de Janeiro state portal (Portuguese only): rj.gov.br/web/guest Portuguese; Brazilian Real (1 Brazilian Real = $0.48) Transfer tax is 2 percent of the sale price; property tax is $10 a year; notary fee is approximately $500. Dr. Andreas Hahn, Hahn Imoveis Brasil, 011 49 371 2397867; immopool.de