Published on 19 June 2008 at 05:47 pm
Filed in Property News for Brazil » Alternative Property Investment in Brazil
Everyone is being told that Brazil and Natal in particular are the next big thing in terms of property investment success – “it’s the place to invest, and if you don’t believe us, believe the Beckhams!” property developers are saying. Well, yes the Beckhams are reputedly putting money into ventures there, but commercial ventures of the football academy kind! And what a ridiculous reason to invest in a place anyway, it’s not as if David Beckham is a global real estate genius.
Okay, okay, so we admit there is much to delight in in terms of the Brazilian real estate market and also in terms of what’s happening in Natal, but the be all and end all is not tourism property and it is not just a tiny pocket of the Brazilian property market. There are alternative property investment opportunities in Brazil you know…
For example, have you thought about commercial property in Brazil? With a rapidly advancing economy and strong levels of foreign direct investment being received, this is a country with an expanding business environment where in certain cities there is extreme upside pressure putting ridiculous stress on commercial rental rates. You could cash in on this if you thought about office property in say Sao Paulo.
What about residential stock in the most urbanised areas instead? After all Brazil has a massive housing deficit – you could cash in on local demand and buy affordable units in bulk in Rio de Janeiro for example and hold these for long term appreciation whilst enjoying rental income in the shorter term.
Going back to Sao Paulo, this is a place to buy to let to professionals from overseas whose companies send them to work in the city – all expenses paid. It is also the place to look if you want to target affluent local demand as well because it really is the city of dreams for many young, professional Brazilians seeking their fortunes in jobs in Sao Paulo.
Brazil is a nation of massive opportunity – there are no two ways about it – but rather than targeting a rather untried and untested tourism market with fly-to-lets which are dependent on many a European making a long haul flight to Brazil, look at the local market and what it is demanding and what it can afford. If you want to make money in property in Brazil think about current and future demand and which pockets of the country and also the property market are the strongest contenders for long term success.
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