Why Brazil? Why specifically the northeast region? Why now? Who hasn’t, at some time in their lives, looked at the value of property in a given area (think Spain, Portugal, France) and thought, “If only I had bought a piece of property back then when prices were low, I’d be sitting on a goldmine right now”? Well, now is that time in northeast Brazil! The reasons are numerous, but let me quickly tell you why.As savvy investors know, Brazil is starting to make headlines. Not only does it offer stability, revenue, and high income jobs due to offshore oil opportunities, but Brazil is on the verge of becoming the #1 domestic tourist destinations in South America. It was recently awarded the honour of hosting not only the soccer Confederations Cup 2013, but also the World Cup 2014. This has created massive infrastructure improvements and tourism investments. The Brazilian state of Ceara alone (capital city Fortaleza) will see an impressive 9.8 billion BRL ($5.6 billion USD) investment in the lead up to 2014.For property investors, timing is everything, and this couldn’t be a better scenario. Brazil currently has some of the best property values in the world, combined with some of the highest forecasted growth. Market analysts are predicting a price increase of over 20% per annum in the ‘hot zones’ of Natal and Fortaleza. There is a hotel and condo shortage in the most popular tourist area – namely, the Boardwalk. There is practically no more development land. It just doesn’t get much better than this.Just have a look at our photo gallery of Natal and Fortaleza here, and tell me your breath isn’t taken away!There are three options we’ve identified as the best ways to invest in Brazil right now, specifically in or near the soon-to-explode markets of Fortaleza and Natal. Here they are and here’s why.Option 1: Purchase an existing resort condo • The resort condo market in these two areas yield 80% occupancy year round. There is no real ‘off season’ in this perpetual weather paradise.
• You can expect an immediate rental yield from 15-20%.
• While the generally forecasted price increase in this area is a fantastic 20% or more per annum, some analysts are predicting a price increase in the next 18 months of approximately 50%!Option 2: Purchase an off-plan / pre-construction condo In addition to the points above, there are a number of additional benefits to this route.
• You can take advantage of financing terms offered by most developers.
• Buying off-plan means you purchase a property at today’s prices, but it will appreciate by at least 20% by the time construction is completed.
• As an investor group, larger discounts can be negotiated on off-plan properties.Option 3: Purchase a plot of land As Mark Twain so poignantly quipped, “Buy land, they’re not making it anymore”. • Brazilian land bought in quantity is going for next to nothing and offers a fantastic low entry opportunity.
• Prices for inland or ocean view acre lots are $10,000 – $20,000 USD or less.
• Prices for single acre oceanfront lots are $60,000 USD or less.(Compare this to a beachfront acre in Florida ($10 million USD), an accessible acre in the Bahamas ($2 million USD),
or a beachfront acre in Costa Rica ($200,000 USD), and I’m sure you will understand the incredible potential)If this article sparked your interest, come see more at investinbrasil.wordpress.com or contact me at: