Buying a property in Rio de Janeiro is a hot topic with property investors and holiday home purchasers. Never has it been a better time to invest in Brazil real estate, with return on investment the highest in the world. At Rio Exclusive Imobiliaria LTDA we pride ourselves in bringing you the most luxurious properties and the best investment opportunities across Brazil. Unlike traditional investment companies, we are an imobiliaria (real estate company) and so our properties are comprehensively reviewed, visited by our professional real estate sales team and handpicked to make sure you get the best investment and quality for your money.
There are numerous excellent and justified reasons on why Brazilian property investment is at the forefront of international real estate. Below you will find 10 of the best reasons why you should invest in Brazil;
Since 2003, when Brazil had a new government sworn in, they have succeeded in creating an economy ripe for foreign investor interest and promoting a fiscal and political environment conducive to growth. Local and international confidence in the Brazilian administration has grown rapidly the last years and this confidence has been based upon the government’s sustained and successful policies to create a far more resilient economy with reduced inflation, a stable currency and strong export performance. According to Goldman Sachs, by 2050 Brazil will be the world’s 5th biggest economy.
Many of us have seen the growth in property markets and wished we had invested earlier or had bought more properties when prices were low and you could get the perfect property investment balance, of strong growth and strong income returns. Brazil now offers the astute investor the perfect opportunity to enter at the early stages of the market, before prices start to reflect its growing status as one of the world’s most promising economies and tourist destinations.
According to Forbes Magazine ‘Brazil is the most interesting international opportunity for investor’s right now’. There are no restrictions imposed by the government for foreigners buying property in Brazil. Brazilian law gives the same protection and guarantees to foreign capital investments that it gives to investments made by Brazilian nationals. Property ownership is 100% freehold and secure. As well, Brazil has very low building costs when compared to other holiday destinations, and especially when compared to European and North American costs.
Before 1994, mortgage lending was pretty impossible in Brazil by reason of high rates of interest. Of late the Brazilian government has introduced several policies to make mortgage financing efficient. The main intention is to minimize the insolvency risk and costs. The government is allowing liquidity in the mortgage loans. Therefore, a robust and mortgage backed security market is now growing slowly in Brazil. Currently total mortgage values represent only 2% of the Brazilian GDP, however the Brazilian government expects the Brazilian mortgage market to grow 600% by 2014, with total mortgage value reaching 12% of GDP. As a result, an increase in value of Brazilian real estate will take place across the nation for the foreseeable future
The steady fiscal reforms and economic stability have pushed down the Brazilian interest rates and inflation significantly. With inflation currently at approx. 5%, Brazil is becoming an investment magnet country and has received several investment upgrades from leading economic institutions.
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 of Brazil. 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).
Until a few years ago, the tourism sector was jeopardized by the limited development of infrastructure and the lack of foreign promotion policy. However things have changed the last years and the authorities realized the importance of tourism as a source of foreign currency and as a sector generating employment and income. When the new government took office in 2003, they created the Ministry of Tourism (which did not exist before) and they have already more than doubled the number of international events and fairs promoting tourism in Brazil. With the upcoming World Cup of football in 2014 and the Olympic summer games in 2016, the money and planning the government is putting into infrastructure is extremely strong.
The cost of living in Brazil is low for those who have an overseas income or earn foreign currency. Your dollar or euro will stretch further than other Caribbean or Mediterranean locales, which allows you to more easily enjoy the luxuries that abound in Brazil.
Restaurant meals are usually good value, and the service and food are generally good, whether you opt for local or international cuisine, and maids and other domestic help are also available at very low cost.
Brazil is a model country for the rest of the world, with having now experienced decades of successful democratic governments, and peaceful living for its citizens, with no enemies or threats of terror.
Brazil truly is one of the most beautiful, exotic and diverse countries in the world. From the world class cities of Rio de Janeiro and Sao Paolo, to the amazon, the beaches of the north east and the African influences of the state of Bahia, Brazil is a country that you could take a lifetime to explore to appreciate it's full beauty. What better place to make your holiday home, or real estate investment.