I
don’t have a spare Million to throw on property...where can i buy
affordable property and make good real estate investments in Brazil?
Don't you just hate it when a market takes off and you haven't
actually got in on time? It happened in Spain, Portugal and Dubai.
Now it's happening in Brazil because there has been so much hype,
advertising, coverage and that hype has been found to be based on
actual facts and fantastic fundamentals. A frenzied buying crowd is
pushing property prices right up before our very eyes.
So, can I still afford property in Brazil? The answer is yes, it is
still affordable for those of us who won't have a spare million to
throw into the pot any time soon ! And what's more, if you don't
actually want to be a part of the beautiful people with fat bank
accounts and who are buying all along the coast of Rio de
Janeiro, purchasing commercial buildings in Sao Paulo there are quite
a
few other options.
There are some locations that you can still invest in
where the future tourism demand and industrial & office space will
come from those seeking the 'real' Brazil rather than a new pair of
breasts, yacht and golf clubs or perfect teeth.
Maybe you are a baby-boomer ready to retire or have done so recently
recently with limited options
and want to join the annual 70,000 foreign retirees who make Brazil
their new home. Are you a sports & nature fan?
Maybe you just want a place that you can call your own when you visit
and renting out the property which pays for itself sounds like a
bright idea? Or maybe you already have read our "Essence of Land
Investments - Intro to Brazil" and want to take advantage of this
"highly in demand high value appreciation" commodity?
Brazil is really about the climate, the landscape, natural resources,
the flora, the fauna and most of all about the people. It's about
tropical living, laid back relaxed lifestyles, soaking up the sun and
taking in the stunning environs in which you find yourself. And so,
if all this appeals to you - or you think it would appeal to your
future tenant demand...where should you be buying if you want
affordable
yet attractive property in Brazil?
Now we are ready to get to the heart of the matter.....
The Northeast region of Brazil, which the government has forgotten
for
so long until the past few years, is the place we are talking about
here.
The friendly people, the steady summer climate, the undeveloped
areas,
the cheaper prices of land, construction and labor, no Acts of God
such
as hurricanes, tsunamis, volcanoes erupting, earthquakes and
tornadoes
make this part of the country the most attractive for any investor.
Since this area is still not fully developed this opens up the door
and unlocks many opportunities which we cannot see anywhere else on
the
continent.
All investors are looking at Brazil and as far as the real estate
sector is concerned we just landed in the hotspot. But do not fear,
you still
have time...To approximately 70% of the Investing World this place is
very little known.
The prices are affordable especially for foreigners with stronger home
currencies,
cost of living is lower and it is not as highly saturated as other
locations.
I know what you are probably thinking at this point ! This is another
flash in the pan,
the bubble will burst soon and the prices will go through the
roof.Well, Brazil's
Northeast Coast is about 10 longer than Portugal's and Spain's put
together.
The region is 10 times larger than the two countries put together and
so is the economy.
The tendency of market growth will continue to last for years to
come...
Condominiums of apartments and houses are springing up all along the
coast of these 6 states, developers are constructing many
sophisticated hotels, resorts,
golf courses, marinas, airports and office buildings.
New companies are being opened up daily which in turn brings many jobs
to
the area stimulating the rental and sales markets.
Offices are so highly needed and since the economy has been growing
for
at least half a decade so well has resulted in new buying power of an
average Brazilian.
As a domino effect, Shopping Malls are constructed at a record rate
and import
businesses thriving out of proportion.One example is that Fortaleza
City, State of Ceara,
Northeast Brazil has the most imported vehicles on the continent.
Out of theses 6 states in opinion of the most of investors,
developers and property buyers State of Ceara and State of Piaui are
the most attractive
with government support and many different options of investments. The
land is priced
better than the rest of the country and the rate of investments is
higher besides the bottom line which is the return on investment
(ROI), is outperforming the rest.
Donald Trump, Samuel Zell, Bill Gates, Bill Clinton, Club Med, Ratan
Tata, Warren Buffet and Prince Al-Waleed are leading this trend. This
is a very strong signal that should not be ignored.
I am so excited about this BOOMING TREND that, from Chicago, I moved
to Fortaleza City. I have been living here for the past 6 years for
about 9-10 months out of the year.
I can already notice significant changes, large amounts of growth
and many satisfied investors that have been flocking here. The
natives call it the foreign invasion because,
literally, in those 6 years the foreign population in the large
coastal cities
of these states has come to about 8.5%.
The best bets are to invest in the beach front, close to LARGE CITIES
with good access roads and close proximity to airports. Also, large
developments in the area usually are a good clue that you are heading
in the right direction.
Inside the cities I would recommend office space with small units but
large volume for rental purposes and a comfortable and an easy exit
strategy.
More and more folks are retiring in Northeast of Brazil as well for
the simple reason that the costs of living are much lower than the
rest of the country and much, much lower than the rest of the World !
This in turn has created a good demand for properties for these people
as well as the huge natural resources have attracted quite a few
investments in farm land for sugar cane plantation as the ethanol
exportation has tripled in the last 3 years as well as sugar
shortages
all over the world, reforestation for pollution credits, and enormous
number of other possibilities!
Brazil is self-sufficient in energy and is the world’s largest
ethanol
exporter, inflation rate per annum is under 5% and the growth rate in
2007 was at 5.7%. The Brazilian stock exchange has shot through the
roof many times over throughout the last 3-4 years.
One of them as well is definitely an unexplainable tourism potential
which
is starting to be explored on a more serious level.
The people are quickly becoming a very generous consumer.
This is a no brainer; even blind-folded would be a no miss choice.