Who invests in Brazil Property?
Get the facts that explain why.
Being the fifth largest country in the world, Brazil has enormous potential for tourism. Until recently this was largely untapped, but when the new government took office, it immediately created a Ministry of Tourism for the first time; tourism is now firmly on the agenda. Since this time, hundreds of millions of dollars have been invested in the country and with the target to increase tourism over the next few years, where better for an overseas property investment and holiday retreat than Brazil.
The Brazilian government's initiative to improve the country's economy has probably helped encourage foreign investors to pour capital into a country that has previously been regarded as economically unstable. The government has recently implemented a program of reform that, among other things, has focused support on the tourism industry for Natal and surrounding areas.
A diverse landscape, rich culture, idyllic climate and affordability are just some of the reasons why British buyers have started flocking here - but property prices are the reason they are staying. Nowadays, the main buyers on Brazil property market are people with middle earnings, namely middle class, because prices are really let them to buy it. Also cost of living in Brazil as low as 30% of the cost in the UK/Europe and the standard of living is improving all the time. Due to such reasons, Brazil property is also popular with retires who would like to enjoy their retirement in a place with pleasant climate and at prices much more affordable than those in Europe.
Land costs in Brazil are very reasonable, with the prices of larger plots often under valued. In fact, costs of around £5 per square meter have been reported. However, if you are after a plot in a more established development, then you will need to budget around £20,000 for a 1,000 square-meter site. There is also a great deal of new-build property to choose from, should you wish to leave the actual building work to someone else. Currently you can buy property in Brazil for as little as 50,000 Euros for a new 2 bedroom apartment on a prime beachfront location.
Here are the main reasons why so many people are investing in Brazil property:
- Growing economy; Brazil is one of the four largest developing economies in the world (the three others being China, India and Russia) and according to Goldman Sachs, by 2050 Brazil will be the world's 5th biggest economy
- Lower interest rates and inflation under control
- Active tourism promotion policy
- Brazil is a peaceful country and is not affected by political wars or terrorism
- Outstanding Currency Appreciation
- New ownership laws protect the buyer
- New mortgage laws
The buying process is not difficult, just time consuming and confusing if you don't know the city or what to expect, you don't speak the language and you don't have a lawyer you can trust. The time consuming aspect extends to the actual finding of the property in the first place, as most estate agents do not have pictures of the properties they are selling, have not personally visited them and inevitably "bend the truth" to get you to visit places which are clearly not what you are looking for.
Buying in Brazil can be very lucrative. It is definitely not for the faint hearted, but when did the faint hearted ever buy property of any kind. With the economic situation getting better all the time Brazil looks to be a good prospect with house prices rising by about 20% per year and looks set to rise even further.
Author: by Gabriela Sabal