V Winner Post #23- Real Estate In Brazil

'Ten Top reasons to invest in real estate in Brazil today'"Brazil Property continues to be hot, but it has never reached the critical mass to produce rampant growth, as in Costa Rica, Florida or Las Vegas. This is about to change. Brazil for the first time is emerging from a status it hasn’t had since the 1960’s. Growth is picking up, foreign direct investment is up year after year, and the Brazilian stock market is as high as ever.Reasons why Brazil Property has not increased in value as much as Costa Rica, for example, may be traced to investors' unfamiliarity with Brazil and the Brazilian market. Brazil is still seen as unstable by some, though the truth is the opposite. If you have title insurance buying property in Brazil, safety is not at issue. Once a person owns property State and federal laws makes lawsuits and foreclosures nearly impossible. Another myth is that foreigners cannot own property in Brazil" False. Property in Brazil is freehold. But it is worth being cautious with companies offering options other than freehold ownership or when an accredited title company refuses to issue full title insurance.For the top ten reasons to buy property in Brazil today:1/ New mortgage laws:A. These laws create a better environment for banks to loan moneyB. The banks are able to make a safer investment when lendingC. In countries without sustainable mortgage products, there is very little domestic demand for property because purchasers are forced to pay in cash for property. This creates low property pricesD. By the end of 2008, wide-open mortgage packages will be availableE. Right now falling interest rates are making mortgages more commonF. Due to the availability of mortgages domestic demand for property is increasing2/ New ownership laws protect the buyer:A. These laws are some of the best in the Americas, designed to make ownership more appealingB. Ownership is far more secure in Brazil than many other popular Latin American destinationsC. This creates new international demand3/ Easy access from Europe and North America due to new infrastructure:A. The Government is supporting tourism projects all across the coast by increasing the availability or utilities and infrastructureB. Government is financing the renovation of old airports and building new airports to meet the demandC. The government has come to realize that tourism and property is a new form of economic growthD. Currently Brazil is the 5th best infrastructure in the AmericasE. Infrastructure and access adds value to property and creates domestic and international demand4/ Outstanding currency appreciation:A. Currency appreciation that has taken place with the Brazilian currency is outstanding. In 2002, Brazil’s currency was almost 4 to 1 to the US dollar. Today it is 2 to 1. Its low was approximately 1.85 to 1 dollar July of 2007B. If a person bought property in 2002, that person would have doubled their money with currency appreciationC. In April 2007, the Brazilian reserve sat at $101 billion. As Brazil becomes more stable and builds up currency reserves, this appreciation will continue5/ Undervalued Beach property compared to the rest of the Americas:A. An acre of Beach Property in Florida goes for $10 millionB. In the Bahamas, an acre in accessible areas sells for $2 millionC. An acre of Beach property in Costa Rica sells for $100,000D. In Brazil, acres bought in quantity are as low as $5,000 to $15,000 or single acres on the ocean for less than $55,000E. This creates international demand and domestic demand6/ Brazil has a large domestic population of almost 200 Million people:A. This domestic population will embrace credit and mortgages and start buying houses and propertyB. This will create domestic demand, demand forces property prices to riseC. Costa Rica and Nicaragua have populations of roughly 5 million. These countries' real estate booms are not homegrown, but due to international speculation. This situation lacks long-term stability. Why buy a half acre on the ocean in Costa Rica for $1 million when you can buy it in Brazil for $35,0007/ Currently the 10th largest economy in the world, Brazil will be the 5th largest in 2050 as ranked by Goldman Sachs:A. When Brazil reaches its paramount in 2050, the beach property prices will be the same anywhere in the worldB. It is expected that beach property will continue to increase in value rapidly until 2050C. This economic growth and stability creates international demand. It solidifies Brazil as a great place for real estate investors8/ Pay little, get a lot:A. In Brazil, construction costs are half what they are in the United States and EuropeB. Currency is also 2 to 1 to the dollar and almost 3 to 1 to the Euro. This money goes a long way on everyday purchasesC. This bonus can lure property buyers seeking an affordable standard of living, will create international demand9/ Interest rates in Brazil are dropping fast:A. If you look at rates 18 months ago they were at 18%. Today they are under 12% and falling every few monthsB. These rates are falling because Brazil has a huge trade surplus and account balance due to its raw material export driven economy. This surplus has assisted in Brazil have sufficient currency reserves and eliminate deficit spendingC. Further exports of sugarcane ethanol to Japan, United States and Europe will further Brazil’s trade surplus and create a more stable economy allowing for interest rates to fall even lower10/ Beautiful beaches:A. Brazil is ranked for having some of the best beaches in the world. They feature white sand, warm water, warm climate and beautiful tall palm treesB. Brazil has one of the longest tropical coast lines in the world.

- A. Jonathan Buhalis