Investing In Brazilian Land

Whether you already have a full portfolio, or are considering your first property investment, we aim to provide you with insightful information on various aspects of the overseas real estate markets.

In this issue we have looked at land investing in Brazil, a market that continues to steadily increase in demand, interest, tourism and economy. Brazil has been attracting a wealth of interest in recent years and remains one of the strongest emerging markets throughout the world.

Overview of Brazilian Land Investing

Land investing is growing in popularity in Brazil due to various factors including the growing property market, location, improvements to the local economy, variety of exit strategies and low entry levels, all benefitting land investors.

The Brazilian property market has not been affected in the same manner as some other overseas markets due to the current world economic factors seen in recent times. With the low purchase costs, especially found in land investing, many people are viewing the Brazilian market as a viable location for holding their savings as opposed to markets such as stocks, shares and even banks.

The low cost of land investments in Brazil are as beneficial as the exit strategies are varied, offering greater options for potential capital growth, and returns from investments possible in shorter periods of time.

The variety of exit strategies available to land investors include land banking, re-selling the land undeveloped, acquiring permission for single homes, apartments, hotels etc and of course, building on the land and selling the finished product, producing the largest potential returns.

The tourism market in Brazil is on the increase, with the government actively promoting and improving the infrastructure facilities, with aims to reach 9 million foreign visitors by the year 2010. The boost to the year-round touristic market assisted by the fantastic climate and stunning natural beauty, further assists those who consider Brazilian land investments in touristic regions, such as the north-east. Entering the market now, while the prices are still low in sought-after areas, the demand is increasing and the market is growing, provide incredible opportunities for maximum potential gain for all investment entry levels, with a wide choice of re-sale options.

News Highlight - Fantastic Affordability

Why are so many people suddenly interested in Brazilian land investments? The answer is quite straight forward – it’s fantastically affordable with potentially amazing returns!

For people finding it difficult to get onto the property ladder in their home countries, the idea of investing in an overseas market becomes more and more appealing. Sadly the price of an average home continues to be out of reach for many buyers, especially when the cost of living continues to rise and wages remain stagnant year after year.

Stepping onto the property ladder and making a profit from only a small cash outlay might seem too good to be true to some, however looking closely into land investments, especially in emerging markets, there are many benefits to be found.

Carefully considering the right type of purchase, with the assistance of a professional investment advisor, can give the buyer a great deal of insight into this market. Many people are reluctant to enter into land investing, as they view overseas markets in the same manner as they view the market in their homeland. People have become accustomed to viewing land prices as incredibly high, unless the land itself has no planning permission and no possibility of receiving any in the coming years.

This is why many investors overlook the potential of land investing in places such as the north-east of Brazil, leaving ample opportunity for the early-bird who receives sound advice to make the most of the knowledge and opportunities available to them.

As many people are aware, the north-east of Brazil is in the early stages of a significant boom, it is also one of the few areas on the planet where the current real estate market has not been affected by the doom and gloom of other established areas, and the outlook appears that things will continue to grow steadily for sunny Brazil.

Land investing in Brazil can be achieved with a very small outlay of capital, depending on the size of the land to be purchased and the stage the process is in to be developed. It is advisable to purchase land that either has planning permission or has the possibility of obtaining it, as although land can never be completely useless, planning permission will provide the buyer with a greater range of options and higher potential financial gain when the time comes to re-sell.

Holding onto the land, or ‘Banking’ as it is otherwise known, can be very much the same as placing your money into the bank and leaving it there for a period of time. Land banking does not have the same risks attached to it as placing your savings into financial institutions that tend to dwindle from endless inevitable fees. Instead, the land will continue to increase in value, while having little or no maintenance costs and no mortgage repayments.

After a period of time the land increases in value, making an easy profit for the savvy investor. This is not to say there are no risks associated with land investing, which is why it is always advisable to use a professional company who will offer products with the right background knowledge, advice and follow-up services. Land investments provide a fantastic opportunity for any investor, from a few thousand pounds to many millions, depending upon preferences, and in the north east of Brazil, there has never been a better time to consider land investments than now.

Why Invest in Brazilian Land?

• Safe and Secure investment option
• Sought after location for investments
• Strong investment growth potential
• Minimal outlay of costs
• High capital return potential
• Minimal, if any, maintenance requirements
• Various investment options
• Variety of exit strategies
• Physical product, unlike stocks and shares
• Early entry opportunities
• Brazilian investment remain strong in current market

Latest news in Investment Markets - Dubai

Many people have heard recent news about the big names in the Dubai real estate market making cut-backs on staff, leading to numerous rumours that tend to spin out of control. While it is not surprising that a market which springs out of nowhere in such a short period of time will eventually come to a stand-still at one moment or another, timing of these cut-backs has been quite predictable when looking at the real estate market on a worldwide scale.

The Dubai market has initially been developed as a market for innovative architecture with excessive price tags, aimed at specific types of investors. The creation of the outer areas such as Dubailand, with more affordable property prices and an appeal to a larger spectrum of buyers, has provided some indication that while Dubai wishes to remain spectacular, the market needed to be adapted to appeal to the greater public.

The excessive laying off of staff from companies such as DAMAC and Nakheel does not automatically imply that the Dubai market has crashed it simply means that the high end developers are feeling the effect of the current world market and are taking steps to counteract their losses.

The Dubai government and banks have long been aware of the situation the market is currently experiencing, however many developers have ignored the warning signs and are now forced to face reality. The good news for many potential investors is that for the market to continue to thrive, it will need to focus it’s appeal towards constructing more reasonably priced properties. Many people still hold a great interest in entering the Dubai market, and soon they may have more opportunity than ever before.
Property Investing Dubai Homepage

Property Market Focus - December 12, 2008

Coming Next Month!

The Investment Market in Cyprus

In the next focus we will be looking at the real estate market in Cyprus, an area presenting one of the strongest growth markets in Europe.

Cyprus is currently presenting one of the strongest growth markets in Europe, as the country is developing from being a renowned holiday destination to a growing investment location, especially amongst buy-to-let investors. Having been popular for many years amongst the UK tourists, many buyers are now considering Cyprus for the ease of accessibility and the familiarity. The strong and steady growth in the tourism market is an appealing factor, along with the country’s recent entry into the EU.

The investment opportunities provide large levels of financial return on capital gains and are expected to continue to increase in the coming years, as the available land in the touristic hotspots becomes more in demand. It’s not only the rental market providing opportunities for investors, but also the increasing numbers of Europeans planning to move to the growing market in Cyprus for the fantastic weather, low cost and high standards of living.
Property Investing Cyprus Homepage

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