PROPERTY IN BRAZIL
Why Buy Property In Brazil?
Brazil has a $796 billion economy which is currently the world’s 11th largest and it accounts for over 50% of South America’s total GDP. Manufacturing industries in Brazil are thriving, and the recent oil discovery was the world’s second-largest ever of its type, securing Brazil’s aim of self-sufficiency for oil usage.
With the promise of achieving Investment Grade in 2008, Brazil is widely predicted to be amongst the economic leaders of the future, along with Russia, India and China. The government is dedicated to foreign tourism and annual tourist numbers have risen by almost 100% since 2005. Direct flights from Europe and the US are expanding continuously which further increases Brazil’s popularity, especially in the North East region where there are some fantastic property deals to be made.
Foreign investment is actively encouraged and the low currency exchange rate is making it cheaper than ever for foreigners to invest in real estate. Annual property price increases are running at 20% in many areas of the North East while property maintenance costs remain low and the cost of living remains a mere 20% of the equivalent in the UK and Europe. Returns on land are generally equal to or higher than returns on bricks and mortar, but the entry level is much lower.
By the time bricks and mortar are in place, the land-owner, the developer and the constructor have all enjoyed their share of the profit. Investment in land at the pre-building stage (off plan) enables you to retain a larger slice of the cake, whether you choose to construct a home on your plot or simply enjoy the financial returns from selling your land on at a later date.
To buy land or a property in Brazil you need to have a CPF number before you can purchase. This CPF number must be renewed every year by an accountant or by anyone that understands Portuguese.
As with any property or land purchase, using a good lawyer is key, so you can do all the necessary checks on the land and property.