Property Investment Guide - Brazil
Tuesday, March 18, 2008
Foreign investors have been showing considerable interest on the Brazilian property market. For decades now, the cities and regions, that immediately surround Rio and Sao Paulo in the south, have been thronged by tourists, and the north is beginning to open up as well. With more investments and better infrastructure in Natal and surrounding areas, the confidence in the northern real estate markets of the country is growing on par with that of south.
The Brazilian government has been putting in a lot of effort to draw investors and tourists attraction, to its balmy South American shores. Direct flights have been offered from Europe, and with the fourth largest airport expected to be ready by 2010 in San Gonzalvo, Brazil is likely to draw lot of attention.
Apart from the said factors, the stable economic conditions, booming tourism industry and beautiful climate in Brazil, strongly support the property market in Brazil, drawing in huge investments.
Strong Political background in Brazil boosts investor confidence
A democratically elected progressive government body is a strong point for Brazil, when it comes to encouraging direct foreign investments and economic policies. Brazil has the international recognition of a stable force in South America, and is dedicated towards improving the quality of life of its residents. The Brazilian Government is the driving force behind the attractiveness of this booming property sector, which in turn, leaves investors with immense confidence in the property sector of the nation, so much that, even global names such as the GE Real Estate and Donald Trump have entered into long term property development and investment commitment in Brazil.
Booming Economy of Brazil appears attractive to real estate investors
According to British Foreign and Commonwealth Office, the Brazilian economy is the tenth largest in the world, with 'Real' as its currency. The GDP of Brazil is R$ 2322 billion last year. The annual growth rate was 3.72% in 2006, with the rate of inflation averaging at 3.1% roughly, making the nation more economically stable and developing in a sustainable way.
The Economy of Brazil is strongly driven by industries such as mining, agriculture, petrochemicals, wood products, electronics, tourism and its trading partners on the worldwide front include major players such as the UK, America, France, China, Japan, Germany and Argentina. The strong and increasing economy and overall accepted economic stability in the global market, further ensures that the market remains an attractive option to property investors seeking long term commitment.
Brazil's low cost of living draws huge demand from investors, expatriates, and tourists
Brazilian cost of living is comparatively 20 percent lower than that of UK, which implies that British expatriates and tourists would find Brazil as a better deal for their pounds purchase, than their own motherland. This seems more appealing to investors who desire to buy in markets where people not only like to visit, but can also afford a vacation, or even prefer to live as a retiree.
Brazil's strong economic programmes improve local affordability and drive employment potential for Brazilian property
With recent statistics from the CIA World Factbook, Brazilian unemployment rate is roughly about 9%. At present, with the targeted government action programmes, these numbers are considerably low. The government has been further encouraging to boost foreign investment and raise tourism numbers. It is expected to create more than a million new jobs in Brazil, decreasing unemployment further.
This emphasis by the government to encourage investment, increase tourism and lower unemployment has boosted investor confidence in the Brazilian market, and its affluence and employment, so that there is low but steady increase in demand for property among the local population. This is a positive sign for long term health of the market, and it is a good fundamental that an investor needs to bear in mind.
Rapid increase in tourism sector directly and positively affects property economy
For the property investors who seek profit in the form of rental income from tourism, Brazilian market would be the right choice, with good potential for investment returns. With several government programmes ear-marked to promote tourism, improve infrastructure, and develop accessibility and attract investment to upgrade amenities and facilities, the country is expected to witness 65 million tourists on an annual basis, as per estimates. Further, the tourism is expected to increase by 4% each year for the next decade or so, which is no doubt, exciting news, for investors looking to let properties to tourists.
No restrictions on Foreign Ownership of Property
The Brazilian government welcomes foreign buyers. Land and property ownership in Brazil is free of restrictions and foreign investors and overseas buyers are treated in the same manner as the Brazilian citizens, with all properties sold on freehold basis. To add to this, other attractive options such as the 15% capital gain tax being waived-off in the case of non-residents, profits in re-invested property and 0% purchase tax on short-term investments, make Brazil the right choice for investors who do not wish to see their properties being eroded by government authorities and bad taxation system.
Ideal landscape in Brazil makes it favorable destination for tourism-driven investments
Brazil's natural landscape offers all kinds of terrain and sight possible, and the buyers will find savannahs, plains, mountains, hills, rainforests, highlands and breathtaking waterfalls highly appealing. Even the geography in Brazil, by itself, will lend itself to every form of tourism from golf based to eco-tourism, and the beaches which stretch 8000 kms or more add to investor potential.
Brazil represents exceptional real estate based opportunity and an exciting, appealing, nation for buyers
People examining the investment property in Brazil, will find that the nation is legendary for its carnivals, range of outdoor activities, and beach life. It is usually found that places with an interesting tourism appeal, will also have an opportunity for real estate. For instance, the Rio de Janeiro, is well-known throughout the world for its annual carnival, attracting plenty of tourists. Hence, it is also increasingly growing as a destination to target property investment approach.
High accessibility makes Brazil, a more attractive option for long-term property investors
With flights that are less than eight hours from the European mainland and the UK, getting to Brazil is no longer difficult, than making it through a day at work, and generally, it is more enjoyable. Accessibility, being the key feature, an investor knows to consider his long term prospects in a market, and Brazil has all positive notes in this respect, generating interest and confidence in property-based investments.
Brazil's weather pattern suites one and all, generating more investor potential
Vast geographical expansion gives Brazil, five distinct climate regions, which virtually means, anyone can choose a weather pattern that suites them, be it, a holiday maker, a business professional, or a retiree. View Current Brazil Weather
Hence, on the whole, the investment property that Brazil has to offer is getting more attractive, with the Brazilian government reaching out to foreign investors. With the rapid increase in tourism figures, the nation is becoming an emerging star for both international property investors and expatriates.
Social BookmarkingThe Brazilian government has been putting in a lot of effort to draw investors and tourists attraction, to its balmy South American shores. Direct flights have been offered from Europe, and with the fourth largest airport expected to be ready by 2010 in San Gonzalvo, Brazil is likely to draw lot of attention.
Apart from the said factors, the stable economic conditions, booming tourism industry and beautiful climate in Brazil, strongly support the property market in Brazil, drawing in huge investments.
Strong Political background in Brazil boosts investor confidence
A democratically elected progressive government body is a strong point for Brazil, when it comes to encouraging direct foreign investments and economic policies. Brazil has the international recognition of a stable force in South America, and is dedicated towards improving the quality of life of its residents. The Brazilian Government is the driving force behind the attractiveness of this booming property sector, which in turn, leaves investors with immense confidence in the property sector of the nation, so much that, even global names such as the GE Real Estate and Donald Trump have entered into long term property development and investment commitment in Brazil.
Booming Economy of Brazil appears attractive to real estate investors
According to British Foreign and Commonwealth Office, the Brazilian economy is the tenth largest in the world, with 'Real' as its currency. The GDP of Brazil is R$ 2322 billion last year. The annual growth rate was 3.72% in 2006, with the rate of inflation averaging at 3.1% roughly, making the nation more economically stable and developing in a sustainable way.
The Economy of Brazil is strongly driven by industries such as mining, agriculture, petrochemicals, wood products, electronics, tourism and its trading partners on the worldwide front include major players such as the UK, America, France, China, Japan, Germany and Argentina. The strong and increasing economy and overall accepted economic stability in the global market, further ensures that the market remains an attractive option to property investors seeking long term commitment.
Brazil's low cost of living draws huge demand from investors, expatriates, and tourists
Brazilian cost of living is comparatively 20 percent lower than that of UK, which implies that British expatriates and tourists would find Brazil as a better deal for their pounds purchase, than their own motherland. This seems more appealing to investors who desire to buy in markets where people not only like to visit, but can also afford a vacation, or even prefer to live as a retiree.
Brazil's strong economic programmes improve local affordability and drive employment potential for Brazilian property
With recent statistics from the CIA World Factbook, Brazilian unemployment rate is roughly about 9%. At present, with the targeted government action programmes, these numbers are considerably low. The government has been further encouraging to boost foreign investment and raise tourism numbers. It is expected to create more than a million new jobs in Brazil, decreasing unemployment further.
This emphasis by the government to encourage investment, increase tourism and lower unemployment has boosted investor confidence in the Brazilian market, and its affluence and employment, so that there is low but steady increase in demand for property among the local population. This is a positive sign for long term health of the market, and it is a good fundamental that an investor needs to bear in mind.
Rapid increase in tourism sector directly and positively affects property economy
For the property investors who seek profit in the form of rental income from tourism, Brazilian market would be the right choice, with good potential for investment returns. With several government programmes ear-marked to promote tourism, improve infrastructure, and develop accessibility and attract investment to upgrade amenities and facilities, the country is expected to witness 65 million tourists on an annual basis, as per estimates. Further, the tourism is expected to increase by 4% each year for the next decade or so, which is no doubt, exciting news, for investors looking to let properties to tourists.
No restrictions on Foreign Ownership of Property
The Brazilian government welcomes foreign buyers. Land and property ownership in Brazil is free of restrictions and foreign investors and overseas buyers are treated in the same manner as the Brazilian citizens, with all properties sold on freehold basis. To add to this, other attractive options such as the 15% capital gain tax being waived-off in the case of non-residents, profits in re-invested property and 0% purchase tax on short-term investments, make Brazil the right choice for investors who do not wish to see their properties being eroded by government authorities and bad taxation system.
Ideal landscape in Brazil makes it favorable destination for tourism-driven investments
Brazil's natural landscape offers all kinds of terrain and sight possible, and the buyers will find savannahs, plains, mountains, hills, rainforests, highlands and breathtaking waterfalls highly appealing. Even the geography in Brazil, by itself, will lend itself to every form of tourism from golf based to eco-tourism, and the beaches which stretch 8000 kms or more add to investor potential.
Brazil represents exceptional real estate based opportunity and an exciting, appealing, nation for buyers
People examining the investment property in Brazil, will find that the nation is legendary for its carnivals, range of outdoor activities, and beach life. It is usually found that places with an interesting tourism appeal, will also have an opportunity for real estate. For instance, the Rio de Janeiro, is well-known throughout the world for its annual carnival, attracting plenty of tourists. Hence, it is also increasingly growing as a destination to target property investment approach.
High accessibility makes Brazil, a more attractive option for long-term property investors
With flights that are less than eight hours from the European mainland and the UK, getting to Brazil is no longer difficult, than making it through a day at work, and generally, it is more enjoyable. Accessibility, being the key feature, an investor knows to consider his long term prospects in a market, and Brazil has all positive notes in this respect, generating interest and confidence in property-based investments.
Brazil's weather pattern suites one and all, generating more investor potential
Vast geographical expansion gives Brazil, five distinct climate regions, which virtually means, anyone can choose a weather pattern that suites them, be it, a holiday maker, a business professional, or a retiree. View Current Brazil Weather
Hence, on the whole, the investment property that Brazil has to offer is getting more attractive, with the Brazilian government reaching out to foreign investors. With the rapid increase in tourism figures, the nation is becoming an emerging star for both international property investors and expatriates.
Labels: Economy, Investment-property, Market-Trends
