Brazil “in the investment spotlight”
It appears that with many planning to leave UK shores to set up a new home elsewhere in the coming years, Brazilian property could be their ideal choice with a number of organisations and individuals recognising the positive aspects of the country.
Over a third (34 per cent) of Brits are planning on emigrating by 2020, according to a survey of 1,682 people from www.Intotheblue.co.uk. The majority (86 per cent) of those who want to leave the UK said they wanted to move to a warmer climate, something that a Brazilian property could certainly offer them.
But there is more to the South American country than its pleasant climate and glorious beaches. Hamilton Moreira, senior analyst at BB Investimentos, recently told Reuters that "Brazil is in the investment spotlight". Mr Moreira added that foreigners are pouring significant sums of money into Brazil.
Speaking to the news agency, he asserted that the nation’s economy could grow by six per cent this year as the benchmark interest rate, known as the Selic, is at a record low of 8.75 per cent. He also pointed to the fact that the worldwide economy is expected to continue recovering this year, which will most likely lead to a rebound in demand for commodities. All of this may provide further impetus for people to invest in Brazilian property so they can one day make a return on their purchase.
He was speaking after the Bovespa index rose above 70,000 and there have been another of other recent positive signs for the economy of late. The Brazilian Stock Exchange recently said that it registered a record net inflow of 20.45 billion Brazilian reals from foreign investment last year. This was ahead of the previous record set in 2003, when the volume of net inflow from foreign investors reached 7.5 billion Brazilian reals.
In other recent developments, the largest retailer in Brazil, Companhia Brasileira de Distribuicao has announced that it is to put five billion Brazilian reals into its operations in the country between 2010 and 2012. It plans to open 300 stores during that time and the budget for this investment is 70 per cent bigger than what the company spent between 2007 and 2009.
Bloomberg reported the chairman of the company Abilio Diniz talking up Brazil’s prospects: "We are in a great moment and will see an even more robust economy in the coming years."
Despite all this good news for the Brazilian economy, those who do opt for property investment in the country should be mindful of a number of factors affecting how well their venture will turn out. In an article for NuWire Investor, Alexander Wasastjerna, senior partner at Brazilian Homes, said that location is key when it comes to Brazilian real estate investment.
"In order to make a profit on any property, the property has to offer the buyer the qualities and experiences he is willing to spend his hard earned money on," Mr Wasastjerna commented.
He asserted that this can be done in two ways. Firstly, by ensuring the location is right for the buyer and secondly by guaranteeing that the property appeals as well.
"Brazil real estate can provide excellent and solid long-term investment potential, but it is imperative to base a purchase decision based on an understanding of the real market dynamics in Brazil," Mr Wasastjerna added.
By taking on such recommendations, those who buy Brazilian property with a view to selling on could see significant monetary gains. With so much positive being said of the country and its future prospects, now could be the ideal time to venture into the market.
