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Brazil Real Estate Investment – Why Invest in Latin America’s Largest Country?
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Posted On :
Aug-04-2010
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Article Word Count :
517
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A short article on the benefits of Brazil real estate investment.
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Brazil Real Estate Investment – Why Invest in Latin America’s Largest Country?
The effects of the economic downturn on the global housing industry have bought into light the importance of analysing real estate investment destinations from a broader and more detailed perspective. Despite the difficulties in marketplaces across the world, Brazil has continued to be publicised as a so-called ‘emerging’ country that offers investors solid and stable returns. Please see some advantages that we view as the benefits of investing in Brazil:
1) The currency (Real) is very stable and no longer pegged to the US dollar – real estate investment professionals are confident that this trend will continue as the economy grows;
2) Brazil has a financial environment very conducive to undertaking very lucrative property business including low prices, solid yields, credit rating upgrades, controlled inflation and a healthy banking system;
3) The mortgage market is comparatively lowly leveraged (secured lending represents just 3% of the country's GDP) – this puts the Brazil real estate investment industry in a very strong position in terms of growth compared to many other countries, particularly after the effects of the global economic crisis;
4) Brazil is witnessing an increase in the number of prolific global business leaders looking to expand throughout the country whilst touting its importance as a future economic superpower – the most notable being Sam Zell of Equity International who, in recent years, has acquired large equity stakes in Gafisa (one of Brazil’s most prominent homebuilders); BR Shopping Malls; Bracor (large-scale rental property developments); AGV Logistica (distribution centres) and Brazilian Finance & Real Estate (financial products);
5) Tourism continues to increase which has resulted in a rising level of hotel and holiday home real estate activity which is widely expected to continue heading towards the World Cup 2014, the Olympic Games 2016 and beyond;
6) Brazil’s increasingly stable political system is actively encouraging foreign real estate investment and other international trading activities;
7) The government is encouraging Brazil real estate investment and leasing in the form of increasingly relaxed laws favouring the rights of landlords;
8) Brazil has a largely self sufficient economy that relies little on exports;
9) The country has leading renewable energy sectors (including biofuels, wind and hydro-electricity) which have long been excellent alternative investments in Brazil;
10) With the discovery of oil fields amounting to conservative estimates of over 50 million barrels, the country looks set to become a global petroleum superpower;
11) Social housing projects are encouraging Brazil’s real estate investment industry and having the unprecedented effect of getting millions people on the housing ladder who previously would not have been able to;
12) Brazil has ever decreasing unemployment levels and the country’s Ministry of Employment has confidently estimated for 1 million new jobs to be created in 2010;
13) The housing deficit currently stands at over 7 million which is expected to have long term positive repercussions for the long term growth of the Brazil real estate investment industry;
14) A visible and evidentially rising middle class with increased spending power has resulted in existing homeowners looking for bigger places to live and an increase on second property ownership.
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Article Source :
http://www.articleseen.com/Article_Brazil Real Estate Investment – Why Invest in Latin America’s Largest Country?_28088.aspx
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Author Resource :
Please click on the following link for more information on Brazil real estate investment and subscribe for free access to detailed reports, state guides, up-to-date statistics, strategies, interviews, articles, weekly broadcasts and more: http://www.brazilinvestmentguide.com/brazil-property-real-estate-land/
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Keywords :
brazil real estate investment, investments in brazil, brazilian investments, overseas investment property, investment propert,
Category :
Finance
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Real Estate
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