Brazil – a place to consider investing in

Brazil covers an area of eight and a half million square kilometres and is the fifth largest country in the World. With prices as low as £25,000 for a 2 bedroom detached villa, it isn’t surprising that many property investors are turning their attentions to Brazil for their next investment.

Economically speaking, Brazil is making progress with inflation standing at around 5%. Along with a favourable exchange rate, many businesses are starting to manufacture their goods in Brazil which is helping the economy. Tourism is also starting to pick up – flights from the UK to Brazil can be as little as £180 return, and the year-round good weather, low prices and friendly locals make it a growing tourist hotspot.

Foreign investment is encouraged and buying now could let you see huge returns on investment in a few years time – in some areas of North Brazil, property prices have increased by a massive 20% in the last few years alone. The places that have boasted the best growth so far have been in the area of Bahia, which is situated on the north east coast and is a tourist hot-spot thanks to fantastic weather, beautiful beaches and many development projects underway. Sao Paulo is predicted to see a big growth period as many international businesses are starting to setup bases there, which is increasing the demand for housing and amenities. The violent past is also coming under control, making for a vibrant, cultural city. Rio is also predicted to be a good place to invest as it has a long history of tourism which is expected to continue into the future.

However, be aware that the mortgage market is severely underdeveloped at present. At the time of writing, foreigners are unable to obtain a mortgage in Brazil so you will need to arrange some sort of financial backing in your own country. Mortgages to Brazilians are also fairly rare (approxmiately 50,000 were taken out in 2005), and the rates are not that favourable nor is there much choice. Interest rates are still dropping and banks are developing their products so it is likely in the future that mortgages will become readily available.

If you like to see a list of properties for sale in Brazil, please click here
If you would like more information on Brazil, we suggest the following books:

RSS Feed for This Post1 Comment(s)

  1. Steve Binge | Dec 7, 2006 | Reply

    We provide detailed analysis of Brazil as a potential property investment destination on our website.

RSS Feed for This PostPost a Comment

css.php