Economy and Numbers
There are several reasons why Brazil has great potential as an emerging property market today. Below you will find out why Brazilian property offers you such a promising new investment vehicle.
Brazil is establishing itself firmly as a viable opportunity worldwide and recent years have seen an encouraging annual property price growth rate of 20% in some areas.
Since President Lula’s and now President Rousseff’'s progressive economic policies, Brazil has fast developed into a sound economy with a fiscal and political environment conducive to growth. Today the climate for investment property in Brazil has never been more promising with growth set to continue.
Brazil is already making a name for itself amongst the world’s investors, while there has recently been much media coverage on the merits of this emerging market. Brazil’s new property developments are generally accepted to be of high quality and competitive prices mean that Brazil can boast top quality property for a fraction of the price of property of far less calibre elsewhere in the world. Improved communications to the country and cheap direct flights now available from most European airports, Brazil is attracting growing numbers of tourists and short-term holiday rentals are generating excellent rental yields for investors. The Brazil Tourism and Culture Movement have great ambitions for Brazil and aims to transform it into one of the twenty most attractive tourist destinations of the world.
Capital Growth Predictions
Based on solid evidence, general opinion is that as an emerging market, Brazil offers some promising growth potential to all types of investor. While some areas of north eastern Brazil around Bahia are currently attracting as much as 20% annual capital growth, and other areas are also experiencing price rises at a healthy rate, Brazil undoubtedly represents a profitable opportunity to early investors aiming to gain the greatest returns possible on their investment.
Rental Yield Predictions
Rental income from Brazil property is of great interest to investors as high rental yields are already achievable from property located in the current tourist hotspots. It is expected that mortgage payments and bills can be covered for the year from the rental income achieved during the peak season months alone (December to February).
Brazil Economy
Brazil’s economy has experienced some excellent growth since President Lula’s office. Currency exchange is at a favourable level for foreign investors and inflation is encouragingly low. In addition, President Rousseff policies continue to encompass strong internal investment to improve the economic structure and entice tourism to Brazil, while continuing to encourage large foreign businesses to establish themselves in Brazil.
Economists now predict that Brazil will be amongst the economic leaders of the future, along with Russia, India and China.
Reasons why Brazil is an intelligent property investment location:
- Year-round sunshine with average summer temperatures of 21°C.
- Some areas in the north east of Brazil saw property price increases of 20% over the last two years.
- Current favourable currency exchange, making it cheap for foreigners to invest.
- President Lula brought great hope and improvements to Brazil, including a decrease in inflation to an all-time low, Dilma Rousseff has continued to grow Brazil since taking over as President of Brazil
- Foreign investment is actively encouraged and you can own 100% of land and property.
- Low cost of living compared with many areas of Europe. Property maintenance costs are low.
- Low inflation.
- Increase of thriving manufacturing industries relocated to Brazil.
- Expected to be self sufficient in oil within the next year.
- Great natural beauty with fantastic scenery and 7,000km of beaches.
- Friendly nature of the Brazilian people, along with a rich culture, vibrant cities, carnivals and music.
- Low risk of war, terrorism or SARS.
- Brazil hosted The World Cup in 2014 and will host Olympic Games in 2016.