Brazil – a guide to Property Investment

Property and real estate prices in Brazil are rising significantly in the more desirable and established tourist hotspots, particularly in Bahia on the north east coast. Bahia boasts stunning beaches, warm weather and plenty of development projects. Rio and Sao Paulo are also tipped to be on the edge of a property boom thanks to a stable economy, low inflation, a good tourism history and businesses setting up hubs in both cities. Brazil is also predicted to be one of the economic leaders of the future along with India, Russia and China. Putting these factos together with a low terrorism risk, fantastic scenery, natural oil resources and low living costs, the area is a good bet for fantastic returns on investments.

There are some radically cheap properties on the market, but do not be tempted to rush in – the prices are not guaranteed to increase. Cheap properties are often cheap for a reason – the infrastructure and services may not be very good and there is no guarantee that these will improve in the near future.

The actual buying process

Preparation
When buying your property, it is advisable to also buy the land that the property stands on. Foreign investment is currently encouraged and foreigners can buy land and property without problems, however ensure that you are fully aware of all the local laws and taxes before you buy the property.

Viewing
With return tickets from as little as £180, viewing the property in person is strongly recommended. A week long trip is ideal as it ensures you can check out the surrounding areas and neighbours as well as the property itself.unding area.

Deposits
When you are completely satisfied that the house is in order, you can place a deposit on your house. You will need a signed receipt for this deposit amount. The deposit should ensure that the house is taken off the market. Be aware that there is almost no mortgage market at the moment, and foreigners cannot obtain Brazilian mortgages. You will need to find a way of financing your overseas property in your own country. Only 50,000 mortgages were taken out in 2005 by Brazilians, and not at favourable rates as there isn’t much choice. However, banks are working on developing their products and you should see a lot more mortgage products on the market in the near future.

You will not be able to finalize your property transaction until all documentation has been signed and is in place. When you sign documents, make sure it is in the presence of a good, fluent translator so that you understand what you are signing and you have complete understanding of every stage of the process.

If you like to see a list of properties for sale in Brazil, please click here
If you are looking to buy a book on buying property in Brazil, we suggest one of the following two books:

RSS Feed for This Post3 Comment(s)

  1. Giuseppe Livelli | Feb 5, 2007 | Reply

    Hi there..
    This was very usefull..
    I would like to know where to find info about the area i am looking to buy..
    I will buy in sao paulo coast..Where do i find info on the local law and taxes?
    I am looking forward to hear from you soon

  2. Giuseppe Livelli | Feb 5, 2007 | Reply

    By the way….. Where do you find return ticket for as little as £180?

  3. Sarah | Feb 6, 2007 | Reply

    Hi Giuseppe,

    Try here for cheap tickets –> http://www.buyingforeignproperty.com/searcher/?keywords=cheap+tickets+brazil&mkt=uk

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