Saturday, July 11, 2009
is Brazil the final market to profit from?
Property opportunities - Is Brazil the final market to profit from?
3/30/2009 12:34:00 PM
With a population of 180 million, Brazil's domestic market is huge and its wealth is rocketing as it remains largely unaffected by the credit crunch, making it a property investment hotspot...
One of the BRIC economies (Brazil-Russia-India-China) - which Goldman Sachs says will become superpowers - Brazil currently has the tenth biggest economy in the world ahead.
As well as boasting excellent natural resources, making it one of the most self-sufficient countries in world, Brazil is also the only region on the planet that is free of earthquakes, twisters, tsunamis, ethnic conflicts or terrorism.
It also has a temperate year-round climate of around 27 degrees with many days of sunshine and is a hugely popular holiday spot.
The country is extremely popular with foreign buyers due to its political and economic stability, and freedom to return profits and return of capital to the investor's native country. The Bank of Brazil has been voted one of the best for investment.
The British Embassy predict that there will be over 50,000 UK residents buying property in Brazil by 2011 and investors can also expect to see high levels of capital growth.
Nick Cates, Global Business Development Manager at BRIC Group, says, "Foreign investment in Brazil is quickly gaining momentum.
"The area of Fortaleza is already one of the biggest domestic tourist destinations in Brazil and, with news that it may well be a host city when the World Cup comes to the country in 2014, interest looks set to sky-rocket.
"Millions of pounds are already being spent on infrastructure projects all across the country and, with direct access flights from the USA opening up, along with the domestic mortgage market, all the signs point towards Brazil being a fantastic location in which to invest.
"There is currently a lot of interest from Arab property investors due to an increasing number of direct flights between Abu Dhabi and São Paulo and the growing availability of funds generated by crude oil in the Arab world.
"Condo prices are up by more than 20 per cent since last April and continue to rise and the short-term rental market is running at close to 100 per cent occupancy for the next three months.
"Brazil's policy of seeking stability over rapid, unsustainable growth is helping it to better weather the credit crunch.
"Indeed, while the economies of most of the western nations have shrunk in the past year, Brazil's economy is expected to grow by 2.1 per cent, according to the United Nations Economic Commission for Latin America and the Caribbean," added Mr Cates.
full article: http://brazil.themovechannel.com/news/0ad04d80-168a/
3/30/2009 12:34:00 PM
With a population of 180 million, Brazil's domestic market is huge and its wealth is rocketing as it remains largely unaffected by the credit crunch, making it a property investment hotspot...
One of the BRIC economies (Brazil-Russia-India-China) - which Goldman Sachs says will become superpowers - Brazil currently has the tenth biggest economy in the world ahead.
As well as boasting excellent natural resources, making it one of the most self-sufficient countries in world, Brazil is also the only region on the planet that is free of earthquakes, twisters, tsunamis, ethnic conflicts or terrorism.
It also has a temperate year-round climate of around 27 degrees with many days of sunshine and is a hugely popular holiday spot.
The country is extremely popular with foreign buyers due to its political and economic stability, and freedom to return profits and return of capital to the investor's native country. The Bank of Brazil has been voted one of the best for investment.
The British Embassy predict that there will be over 50,000 UK residents buying property in Brazil by 2011 and investors can also expect to see high levels of capital growth.
Nick Cates, Global Business Development Manager at BRIC Group, says, "Foreign investment in Brazil is quickly gaining momentum.
"The area of Fortaleza is already one of the biggest domestic tourist destinations in Brazil and, with news that it may well be a host city when the World Cup comes to the country in 2014, interest looks set to sky-rocket.
"Millions of pounds are already being spent on infrastructure projects all across the country and, with direct access flights from the USA opening up, along with the domestic mortgage market, all the signs point towards Brazil being a fantastic location in which to invest.
"There is currently a lot of interest from Arab property investors due to an increasing number of direct flights between Abu Dhabi and São Paulo and the growing availability of funds generated by crude oil in the Arab world.
"Condo prices are up by more than 20 per cent since last April and continue to rise and the short-term rental market is running at close to 100 per cent occupancy for the next three months.
"Brazil's policy of seeking stability over rapid, unsustainable growth is helping it to better weather the credit crunch.
"Indeed, while the economies of most of the western nations have shrunk in the past year, Brazil's economy is expected to grow by 2.1 per cent, according to the United Nations Economic Commission for Latin America and the Caribbean," added Mr Cates.
full article: http://brazil.themovechannel.com/news/0ad04d80-168a/
Kicking off Brazilian dream
The 12 host cities for the highly anticipated 2014 World Cup have been officially unveiled from the long list of 17 in Brazil - causing international property investors to start pinpointing these cities as the next investment hotpots...
Football's ruling body, FIFA, has selected 12 Brazilian cities to host matches at the 2014 World Cup finals.
The cities were announced at FIFA's annual congress in the Bahamas by FIFA President Sepp Blatter and it was agreed to up the number of host cities from 10 to 12 due to the sheer size of Brazil.
Blatter said, "It was a very difficult decision to choose just 12 venues from the initial list of 17. We want to make this World Cup a sporting success and this is the most important thing."
Natal, Fortaleza, Belo Horizonte, Brasilia, Cuaiba, Curitiba, Manaus, Porto Alegre, Recife, Rio de Janeiro, Salvador and Sao Paulo were all selected.
Manaus won the battle between Amazon basin cities Rio Branco and Belem, while Cuiabá was chosen ahead of Campo Grande from the Pantanal zone - an area of outstanding natural beauty and resource.
Belem, Campo Grande, Goiania, Rio Branco and Florianopolis were the cities that missed out.
The football tournament is the world's biggest single code sporting event in terms of audience - including billions of television viewers. The power of publicity generated from the tournament has led to property investors looking to Brazil for money spinning opportunities.
All the stadiums are required to hold at least 40,000 spectators, with the final to be staged in the famous Maracana Stadium which was refurbished in 2006 and reopened in January 2007 with an all-seated capacity of 88,992.
James Gonzalez, Market Analyst at Obelisk Investment Property, had the final word, saying that the Brazilian property sector has ‘everything going for it' at the moment.
Picture by xenia antunes
Top 5 Long Term International Property Investment Destinations
Full article: News Brazil Updates Brazil - Top 5 Long Term International Property Investment Destinations
Top 5 Long Term International Property Investment Destinations
Overseas Property Mall, Jul 01, 2009
When it comes to overseas property investment there are several choices to be made. What type of investment a person makes depends on what they want from the property, and the type of investment they are making also affects the destinations they will consider.
If a person wants a holiday home that will pay for itself in rental income when the buyer is not using it, then that person is a holiday home investor. They must choose a property suitable to accommodate them and those they holiday with, in a destination that they would like to spend their holidays in, which also has a strong rental market.
Then there are pure-investors, which are then split into short-term investors and long-term investors.
Short-term investors must choose a property that is going to appreciate rapidly in value, in a location where there will be plenty of people to sell to 2-3 years down the line. For this they will probably be looking for a strong and/or growing internal housing market.
Long-term investors have a much wider choice; because, failing some catastrophic event, practically every property is going to appreciate in value over the long-term. The question is by how much?
For long-term investors it is primarily about economic growth and stability. It is growth in the economy that really pushes up house prices, and also increases internal demand for housing and second homes, which in turn provide the exit strategy.
Brazil
In Brazil’s case it is simple. Brazil is among the top 5 largest food exporters in the world, with the world’s second largest cattle stocks, and is also the second largest exporter of meat. On top of that Brazil’s services sector is growing rapidly as are the hospitality, construction, tourism and health tourism sectors
The world’s leading analysts have predicted that Brazil will be the fifth largest economy in the world in the next 5-10 years. Yet property is currently a lot less expensive than in the world’s other leading economies — especially if you look at houses on the internal market. As Brazil grows into one of the largest economies, property will grow in value till prices are similar to those in the other major economies, at which point growth will slow to the established market average of 10% per annum.
Walmart plans to invest $809 million in Brazil in 2009
Wal-Mart plans $809 mln Brazil investments in 2009
Reuters, Jun 23, 2009
Wal-Mart raises Brazil investment by a third to open 90 new stores
SAO PAULO, June 23 (Reuters) - Wal-Mart Stores Inc plans to invest 1.6 billion reais ($809 million) in Brazil in 2009, betting an economic recovery in Latin America's largest economy will stoke consumer demand.
"The worst is over and from here on we will have a rebound in Brazil's economy," said Hector Nunez, chief executive of the U.S. retailer in Brazil.
Wal-Mart's investment this year, a third more than last year and its largest since entering the country 14 years ago, will go partly towards opening 90 new stores as well as to the 348 it now operates, he said.
Nunez said he expected Brazil's economy to grow by 1.5 percent to 1.8 percent in the second quarter after a first quarter in which he said the company had felt no retraction in consumer spending despite the economic slowdown.
Brazil's economy shrank 0.8 percent in the first three months of the year, officially putting it in recession. But the economy surprized economists who had expected a sharper contraction after a 3.6 percent plunge in the fourth quarter of 2008.
"We will have a good year. Our growth in the first five months of the year has been quite positive in real terms," Nunez said, without giving details. "For the second quarter we have a good performance, if not as good as the first." ($1=1.978 reais)
Buying Property in Brazil
Full article - Buying Process Buy Brazil Property Brazil Property Agent
Buying property in Brazil is refreshingly straightforward...
Appointing a Lawyer
As with any legal transaction, the first step in your land purchase is to appoint a reputable lawyer to act on your behalf. Your lawyer will carry out all necessary checks on the property or land in Brazil and fulfill the legal requirements of the purchase.
We recommend you appoint a lawyer who is fluent in your language so that you fully understand all the legalities and proceedings.
(Legal costs are generally between £500 and £1,000 depending on the value of the land purchased.)
Your lawyer will:
Check the current owners have the correct title to the property
Check for any charges and liabilities still owed on the property
Check your contract and advise you on the obligations for both parties
Help you through the payment/funds transfer
Ensure the property is registered in your name
Registration
The property registry system in Brazil is well developed and safe and real estate registration in Brazil is carried out by private notary publics. All land and property is registered at one single registry, which records details of the entire commercial history and the physical identification of each property. It is obviously very important to ensure that any land or property you buy has a clear title and your lawyer will ensure this is the case.
Brazilian CPF
You will need a Brazilian ID called a CPF. This is the UK equivalent of a national insurance number and can be obtained fairly simply by submitting a copy of your passport with a request for a CPF signature card. Once you receive the signature card you simply sign it and send it back with a small fee, and your CPF number is assigned to you at the Receita Federal. This can then be included in any purchase agreement. A formal copy of the CPF card will be posted out to you at an address in Brazil – usually your lawyer´s address for ease.
Costs
Transaction costs, including stamp duty, fees etc. are on average between 3% and 8% of the purchase price. Costs vary according to location, type of property and the State you buy in.
Breakdown:
A down-payment for your chosen property
Property transfer fees of approximately 4%-5% of the purchase price.
Balance payment (or installments if financed)
1% import tax on the transfer of funds from abroad.
Money Transfer
Funds are sent via the official route of the Central Bank of Brazil. The bank records your funds entering the country and in order to release the funds, Purchase Brazil must present the contract to the bank. We strongly recommend you use only this official route, or you may have problems transferring funds out of Brazil when you sell your property in the future.
There are generally no limitations to returning funds overseas provided they were originally registered with the Central Bank at the time of purchase.
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