Unusual Property Investing: Brazilian Farmland

For investors looking for a slightly different foreign property investment, Brazilian farmland offers an excellent investment opportunity.

Farmers from all over the world are congregating in Brazil to buy up cheap farmland or manage it for investors. Popular crops include cotton, soya beans, corn, dry beans and sunflowers. The main attraction of farmland in Brazil is the price – farmland in the US can reach around $3,000 a acre whereas Brazil is more in the region of $500 an acre. There is a lot of farmland for sale, so the opportunity is far larger than in America. In an age of environmentally friendly consumers, property investors could do worse than to invest in a farm where soy beans or other crops-for-fuel are farmed.

With the interest in Brazil from foreign investors increasing, the land prices are also slowly rising. In some areas, land values have grown by over 300% – not a bad return on investment.

However, there are some concerns that all the ‘best’ land is going to foreign investors, and in a land famed for it’s biodiversity, there are concerns that the rapid increase in farm land is having a negative effect on the local environment. Some locals are also concerned about exploitation of the poorer members of Brazilian society. This makes land reform a sensitive issue with opinion firmly split as to whether the foreign property and land investors are a good or a bad thing. With this in mind, officials are planning to propose limits on the level of foreign investment in the country, but for the time being, it is a fairly free place to buy.

So, if you are looking for a slightly different sort of foreign real estate investment, you could do worse than to look at farmland in Brazil.

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