Should You Invest?
Returns on investment are considered superb and investors are
becoming increasingly aware of the high growth potential that
Brazil offers as a stable though fresh, new investment market.
- Active encouragement and incentives for foreign investment -
you can own 100% of land and property.
- Cost of living is only 20% of that in the UK/Europe and
property maintenance costs are also extremely low.
- Some of the lowest property prices in the world.
- Increasingly, thriving manufacturing industries are relocating
to Brazil and boosting the economy.
- Year-round sunshine, with average summer temperatures of
21°C.
- Great natural beauty with fantastic scenery and 7,000km of
beaches.
- Easy access via direct flights from many international
airports.
- Pro-landlord rental markets- with high rental yields in major
city centres.
- Large tourist industry also increases the demand for short-term
rental.
Rental Yields
A 50 sq.m. apartment in Sao Paolo can be expected to yield 9.6%
per annum. Larger sized units generally have lower yields, from
5.4% to 7.2%. Yields for apartments in the suburbs of Sao Paolo are
between 4% and 8%.
Properties in Rio de Jainero are slightly more expensive than in
Sao Paolo, but they also fetch higher rents and return higher
yields; from 7.5% to 9.6%. Yields for apartments in other cities
such as Fortaleza, Bahia and Brasilia are around 4% to 7%. Smaller
units generally have higher yields.
Price History
Prices in Brazil have been relatively unstable over the past few
years, and Brazil experienced a decrease in property prices after
the devaluation of its currency in 1999. In the four years leading
up to 2005, property which had previously been sold for R$150,000
(£38,000/$65,000) went down to less than R$100,000
(£25,000/$42,000). Prices are therefore still relatively cheap but
with the economy now stable there is a strong basis for property
prices to climb again. Prices for a detached villa start at around
£15,000, although a significant premium will be added to property
close to Rio. Prices are also higher in the popular regions of
North-East Brazil.
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