Property Search




Properties in other countries

Property cash sale
Are you hoping for a cash sale on your home? Do you want to cut out the estate agents? Find hundreds of property investors and potential buyers through Choices.co.uk.

Investment advice Brazil

Investing in Brazil property

A guide aimed at the overseas property investor considering buying property in Brazil

Brazilian property an emerging market. Brazil as an emerging market offers good potential, political stability, developing property market, increased tourism, lower inflation, all make Brazil a good bet for property investors. In fact some of our own property investors who bought off plan property in North Eastern Brazil have made substantial short term capital gains within 12 months. Brazil offers prime beachfront property still at low prices combined with a low cost of living overseas buyers can be very happy people.

Buyers frequently asked questions

Brazil Buzz ! our blogs to answer your questions

Brazilian land for sale

Brazil property investors an independent report

Overseas property investors have benefitted from this emerging market. Brazils economy is going from strength to strength. Some of our early buyers are not only profiting from rising property prices but also the strengthening currency. Our resale property offers outstanding value for money. Off plan properties are selling out fast as investors seize multiple plots.

Emerging markets Brazil. Demand from the increasing retirement population and from those who have benefited from their own property markets will start to push real estate prices up in this emerging market.

Brazilian property advice for investors. There exists an enormous opportunity for sophisticated investors and lenders in leveraging Brazilian properties. Until 1994 with the introduction of The Real plan of economic and monetary reform, mortgages simply did not exist in Brazil. Until that time Brazil was historically plagued by hyperinflation and a constantly devaluating

currency.

Brazil currency the Real has got stronger. Since the introduction of the Real plan in 1994 and with it the new currency called, in fact, the Real, all this has changed markedly for the Better. And especially in the last 12 months the trend toward improvement has accelerated sharply as Brazil has achieved energy self sufficiency and is beginning to export petroleum.

Increased Brazilian exports. This together with an increase in exports in numerous other categories, agricultural products, iron ore and steel chief among the non-energy sector, has resulted in the sharp appreciation of Real against all other major currencies, GBP, USD, EURO, YEN, YUAN, etc. Domestic interest rates have also slowed to low double digits and there has been the beginning of a mortgage industry lead by multinationals operating in Brazil such as ABN-AMRO/Banco Real and HSBC, to name two of the leaders.

Mortgages in Brazil. Lenders are just beginning to gingerly test the waters, with decades of experience to justify caution. These mortgage terms are draconian compared to prevailing rates and practice in EU, UK, and US. At the same time there has been an increase in foreign investors from these areas buying property in all areas of Brazil, but particularly vacation and resort areas. Of course, property in these areas has appreciated sharply, 20% to 25% or more per annum for the last three years, driven mostly by domestic demand.

Overseas property investors can win twice. In the last 12 months, the Real has also appreciated sharply, virtually the same 20% to 25% versus all major currencies, dramatically compounding the return on real property. A pound Sterling invested in Brazilian property one year ago would now be worth £ 1.25. But because of the currency appreciation, that property would now be worth 125% of £ 1.25 or £ 1.5625 due to compounding. That is a return, 56.25% in one year, that would make any reasonable investor happy. But what if the investor had used a UK banking relation, based on his UK assets and credit to finance that purchase? What if that investor had not invested the original pound, but instead borrowed it from a UK lender and had invested only pennies, paying(investing only debt service payments) only monthly payments, say, on an equity release at 6%. Obviously, the return would be infinitely higher, so high as to be difficult to accurately calculate, a high multiple of 56.25%. The next step, and the ultimate, would be for a forward-looking and aggressive UK institution to lend to credit-worthy UK residents against Brazilian collateral. The overseas buyer can make a handsome return.

Source; Port of the Sun