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Brazil
Brazil covers nearly half of South America, is the continent's largest nation and the only South American country whose language and culture is derived from Portugal. A portuguese explorer, Pedro Alvares Cabral first claimed Brazil in 1500 and its colonization began in 1532.
In its early days, Brazil’s wealth was built on sugar exports but this was replaced in the late 17th century by the discovery of gold. In 1808, the Portuguese royal family, fleeing the troops of Napoleon, established the seat of their empire in Rio de Janeiro. The King returned to Portugal in 1820. His son stayed in Brazil and declared it independent on September 7, 1822. In 1889 Brazil was proclaimed a Republic and in the ensuing years was ruled by a series of military dictatorships, before it returned to stability under civilian rule. Massive social reforms in the early years of the last decade helped raise many millions of Brazilians out of deep poverty.
Today, Brazil is the largest national economy in Latin America, and the world’s tenth largest economy based on its activities in the agricultural, mining, manufacturing and service sectors. It is self sufficient in oil and gas, a world leader in alternative energy, and has massive untapped agricultural resources.
Brazil is the fifth largest country in the world with 4,500 miles of coastline, and it has a very diverse topography – hills, mountains, highlands and plains with much of the land between 600ft and 2600ft above sea level. As you would expect, this gives rise to a variety of weather conditions and ecosystems. The Amazon rainforest is recognized as having the greatestbiological diversity in the world, and the rich wildlife of Brazil reflects the variety of natural habitats. Larger mammals include pumas, jaguars, tapirs, anteaters, and sloths. Many species of New World monkeys are found in the northern rain forests.
But what of Brazil’s real estate market? Brazil has inexpensive beachfront property, a low cost of living and glorious weather making it an attractive option for tourism, or those looking to purchase second homes and enjoy another culture. However, Brazil also has a healthy economy to support a growing population that needs housing. This makes it an opportunity for investment in building or renting homes for Brazilians to occupy.
As far as tourism is concerned, North-eastern Brazil offers excellent transportation links to Europe and USA. New and resale properties are available for purchase, including condo-hotels. Now could also be a good time to buy into smaller hotel properties - boutique hotels catering to specific market sectors such as eco-tourism.
Those seeking to purchase a second home may consider buying pre-construction from the many local and European builders active throughout the country. However, there are some things to be aware of if this is your chosen path. For instance, you may be required to pay an extra fee during construction, known as an INCC. This takes inflationary costs into account and may be added to the final cost of the property at closing. There are consumer laws in place to protect those who invest in pre-construction purchases, but early consultation with a local attorney may afford the best protection.
Brazil’s rapidly growing population means there is a need for more housing to be built quickly. There are opportunities to invest with companies on a project-by-project basis. They use investor funds to quickly build low cost housing for rent to locals. Funds must be invested for a fixed period of time, and investors enjoy a rental return as well as capital growth when the project is sold at a later date.
Whether you are looking for a destination to enjoy for vacations, or an opportunity to invest in real estate for a financial return, Brazil should be on your list for consideration. |
