Pipa Beleza, Brazil property, Brazil

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Before buying property in Brazil its worth reading this buying guide. Brazil Property is in our opinion one of the best investments available. Tourism is a new industry in Brazil, increasing by 30 per cent in the last year alone, and the property market is hot on its heels. However despite being rather new on the international property-buying radar, this South American country seems to be ticking all of the right boxes for investors, holiday home owners and Retirees alike. With a diverse landscape, rich culture, idyllic climate and true affordability (the cost of living in Brazil is just 20 per cent of the UK) this is why British buyers have started flocking here.

The best investment potential lies in the northern beach resorts. The natural beauty of these areas has been complimented by a range of high-quality developments and inward investment, meaning that capital growth is showing a strong upward trend. In addition the area boasts some of the purest water and cleanest air in the continent, while the city of Natal boasts the highest quality of life (and the lowest crime rate) in the nation.

Today Brazil ranks as the 13th largest economy in the world, following a recent boost in GDP. Such growth is set to continue, with the nation’s economy predicted to become the fifth biggest on the planet by 2035. These figures bode well for investors and, when coupled with the fact that rental yields in tourist destinations range from between 6 and 12 per cent, Brazil looks like a sure bet.

In addition, investment syndicates are well provided for – as up to ten names are allowed to be registered on the title deeds – meaning that you may be able to get on the Brazilian property ladder for even less than you bargained for.

10 good reasons to buy a Brazillian property in the NorthEast of Brazil - Natal area

Brazil Property Investment reason number 1

Sunny and stable weather all year around with very little rain. The annual average temperature is 27oC in the northeast of Brazil which means that there is no “off-season”.

Brazil Property Investment reason number 2

Under priced real estate market, due to continuous years of recession and lack of purchase power during the 80’s and 90’s. The price level for real estate is extremely attractive (there are many similarities to how Spain was 30 years ago) = a chance to get in early

Brazil Property Investment reason number 3

Lower interest rates and inflation under control. Several economists believe that by late 2007, Brazil should have become an investment magnet country. It is believed that the steadily fiscal reforms and economic stability should allow Brazilian interest rates to drop significantly. Today Brazil’s mortgage lending is almost non-existent, but with the decrease of interest rates, a mortgage lending boom is expected and consequently, an increase in value of its Real Estate. Moreover, the potential demand for mortgage-backed securities forpension funds, insurance groups and annuity companies reinforces the huge potential for this emerging market.

Brazil Property Investment reason number 4

Growing economy; Brazil is not a “Banana Republic”, but one of the world’s economic giants with an annual growth rate in the region of 7%. According to Goldman Sachs, by 2050 Brazil will be the world’s 5th biggest economy. Brazil has a population of approx. 180 million that includes more than 1 million multi-millionaires that are naturally attracted by European styled holiday homes situated far away from Brazil’s vast mega-cities: a realistic guarantee of long term future market stability and existing demand (for sales and rentals), which provides security for foreign investors.

Brazil Property Investment reason number 5

The exchange rate is exceptionally favorable at the moment making it very economical for Europeans (Sterling or Euros) to buy property. In the past, the Brazilian currency was artificially linked 1:1 to the US$ (nowit’s 3:1, one dollar buys 3 reais, the currency in Brazil), and most prices still reflect these old price levels.

Brazil Property Investment reason number 6

Foreign investment is encouraged in Brazil, there are no restrictions for foreigners buying property and ownership is solid and secure; you own 100 % of land and property.

Brazil Property Investment reason number 7

Comparable low flying times; The northeast is closer than similar tropical destinations, approx 7-8 hours from central Europe and 6hours from the USA. Direct connections with Europe have increased and charter flights are proliferating. Currently there are direct flights from several Europeans cities such as Madrid, Lisbon, Barcelona,Frankfurt, Milan, London and several Scandinavian cities.

Brazil Property Investment reason number 8

Low cost of living;only about 20% of the cost of living in the UK. Every year an increasing number of foreigners are attracted to the northeast of Brazil, all at a fraction of the price of similar holidays in the more traditional Caribbean destinations. In Brazil you can afford a far more relaxed and luxurious life than anywhere else.

Brazil Property Investment reason number 9

Brazil is a safe country:notropical hurricanes, no tsunamis nor is it affected by any political wars or terrorism.

Brazil Property Investment reason number 10

Various attractions; In addition the beautiful beaches Brazil offers so much more; the nature away from the coastline is truly breathtaking, the culture is vibrant and colorful, the music and dancing is fascinating, historical cities, a huge racial diversity, a varied gastronomy which is delicious and extremely affordable and last but not least, Brazilians are among the most friendly people in the world which makes anyone feeling welcome. In conclusion, all indicators show a huge potential for this sector in Brazil and if you are an investor or just someone looking for a second home, Brazil is the place to look for it and the time is now.

some thoughts of other investors in property in Brazil


Thoughts of some previous buyers

“Personally, I chose to buy a house in Maracajaú. I had been looking at
properties in other places such as South Africa, among other places. From
an investment point of view, South Africa was a great idea 3-4 years ago, but
prices have rocketed and now it is probably too late to make a good bargain
there. Brazil seems to be at a far earlier development stage and here you will
get much better value for your money. Brazil is also undergoing rapid
economic developments, something which will stabilize the country even
more as time goes.”

“We have been coming to Spain for short and longer periods since the
1980s. – Spain is all well and good, but we were beginning to feel it was a bit
too crowded and expensive. In addition the winter months in Spain are not
exactly for enjoying the beach and the sea. In Maracajaú, it is warm all year
around and the climate is excellent. Cost of living as well is very low which is
definitely a plus. You can really spoil yourself without feeling bad about it
afterwards.”

“We both have very stressful jobs back in Europe, and when we go on
holidays we really want to forget everything related to work. We have been
going to Spain and France for many years, but we were really looking for a
place where we could have a warm tropical climate to really get away from
the European winter. Brazil offers a tropical climate in an exotic environment,
and the pleasant daily pace of peace and tranquility in Maracajaú is exactly
what we were looking for. As well, it is so easily accessible from Europe and
the flight prices have come down considerably the last years. We rather
spend a few hours more on the plane and arrive in the tropics instead of
being stuck in the winter chilly Spain or France. For us the investment side
was not the most important factor, but even so, it feels great knowing that this
is the best price we will probably ever pay for a property in our lifetime.”

“For us it was really more a question of investment. We want to maximize
capital growth and with the current price level, the growth in tourism, the
future development of golf courses next to the project, makes us feel very
comfortable with this investment. The location as well is absolutely fabulous,
and we could really see ourselves coming here on holidays in the future,
even though we are doing it more for investment. If we however would decide
to keep the property, nothing is nicer than knowing that you got the property
for a bargain price.”

“For us the idea of waking up early in the morning and being able to walk on
nearly deserted beaches for miles sounds exactly as the way we would like
to start every day on our holidays. The beaches were absolutely stunning
and the food as well was delicious. For a sun-loving Northern-European
couple as us, it almost seems like a near perfect place in the world.”

“We wanted a little more exotic location than the typical European locations
for holiday homes. Brazil is definitely the most exotic country we have ever
been to. Everything from the mix of different races, the food and the exciting
music coming from all corners, were true eye openers. What really surprised
us was that the Brazilian people are so incredibly happy and smiling and it
seems they really want everyone to have a good time. We have never been
so well treated before and neither have we ever seen so much dancing
before!!”

“We had been thinking of buying in the Caribbean for some time, but were a
bit worried about hurricanes so we never did anything about it. When we
found out about Brazil and discovered that Brazil is never affected by
hurricanes, we immediately got interested. The price level for property in
Brazil as well is a fraction of the Caribbean, so we are very happy we had a
chance to get early in and see our investment grow over time.”

“I have been traveling around the world and I have seen many beautiful
places. However beautiful a place might be, I am not a big fan of artificial
resorts without getting any real contact with the locals. What I like about
Brazil, besides the stunning natural beauty, is that you can always get
contact with the Brazilians and you actually feel like you are abroad. There
are always more Brazilians around than foreign tourists, and that will never
change due to the big population of the country. The people in Brazil is what
makes it such a unique place and as a holiday experience, it is
unforgettable.”

Enquire today to discuss what you would like to see from a Brazilian property investment.

 

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