New economic world order
What seems clear is that the financial crisis is
forcing out a new economic world order in the sense
that countries with strongly growing economies, like
China, India and Brazil now enjoy greater influence in
the World Bank and the International Monetary Fund.
In contrast to shares, and trends in financial markets
is often property a safe investment. You know exactly
what money is spent on.
Below are some of the most important factors you
should know to have the best investment foundation
when purchasing property in Natal in Brazil.
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Capital growth
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Low living costs
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Boom in real
estate market
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Currency Exchange
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Inflation
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Economic growth
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Housing shortage
1. Capital growth
Brazil is classified as a new emerging property
market, this means that the potential growth rate is
at its highest level today. Over the past five years
property in Brazil has seen price rises with increases
of over 20%. Last year had some areas in northeast
Brazil a return of 20% and this is not something
unusual.
Now is the perfect time for a property investment in
Brazil. Property prices are still low and it seems to
rise as the Brazilian property market is getting known
and the infrastructure continues to develop at a very
steady pace. Experts around the property market have
the clear perception and tipping Brazil as a
forward-growing country with clear predictions about
the value increase of property is on the way.
2. Low living costs
The cost of living in many areas of Brazil is much
lower than in most European destinations, and
currently lies at 30% of Norwegian living cost. As a
result of lower costs of maintaining and managing
property, it is no wonder that Brazil is also
increasingly popular among senior citizens and people
who withdraw from the otherwise so noisy and expensive
life in the home country.
3. Boom in real
estate market
Property in Brazil is currently on the brink of a boom
period. An investment growth is inevitable in Brazil,
especially in areas close to the sea in the northeast
Brazil.
Many areas are converted to top destinations with good
infrastructure to boost tourism industry in Brazil.
The country's success in tourism is to create a large
demand for lodging in the areas where tourism is
natural. Smart property investors are acting early
with their purchases, which they aim to invest in
projects that have good rental conditions with good
location.
At the same time the market today is very fast and
property prices are constantly driven upwards because
the common brasilian which now, the last 2 years, is
starting to get the capital to purchase their first
house, and the upper middle class purchases their
second home. Like the the outlook show, eventually
will many of Brazil's 190 million citizens establish
capital for the purchase of property beyond the
current standard. This will entail a major housing
shortage in the most sought after areas, and this
applies largely for north east Brazil, where the
stable climate attracts the common brasilian.
4. Currency Exchange
The exchange rate is very favorable in Brazil today,
making the property investment at an attractive option
for foreign investors to avoid losing large amounts of
money in their exchanges to the Brazilian Real.
Brazilian currency has recently stabilized and are now
far more competitive with other international
currencies such as U.S. dollars. This has of course
increased purchasing power for foreign investors to
Brazil. Competitiveness of foreign exchange also means
that international companies from USA and Europe is
established in Brazil, where they are able to operate
with far lower costs and therefore increase
productivity and profits.
5. Inflation
In the year when President Lula was elected (2003),
inflation was reduced to 16% while inflation today is
the lowest ever which is around 5.7%, this indicates a
secure and safe economy to invest in.
Brazil's economic growth and low Inflation levels have
so far resulted in making central banks in Brazil to
cut their lending rates, which in turn has resulted in
a lot of movement in the property market.
6. Economic growth
Brazil has the last five years built up substantial
reserves. The country has over U.S. $ 200 billion in
foreign reserves, and has no net foreign debt.
The increase in profitability of some large Brazilian
companies are large, this applies for example for
Unibanco from the private bank sector, Eletropaulo,
which is a power distributor, and the successful
merger of international companies in Brazil (eg Arclor
and InBev is the world's largest beer producer ). The
good economic prospects in the country brings with it
a further positive effect on real estate investments.
Moreover, the Spanish and Portuguese developers as
well as major hotel and resort companies come to
Brazil to invest millions of euros in tourism, which
is addressed to the European market.
According to experts, Brazil is expected to be
self-sufficient in oil reserves during the next year,
and it is believed by some economists that Brazil will
be among the global superpower in the future, together
with Russia, India and China. (BRIC).
7. Housing shortage
As written, Brazil will have a shortage of housing,
and investors are looking for development
opportunities for good investments in this emerging
property market. By investing in projects like Sol do
Atlantico Resort & Spa with the facilities the project
holds, the revenue from sale/rent will be good in
short term, and in long-term even bigger.
Because of these facts and the prospect that Brazil
shows, SOL will have their future projects first
launched in the Brazilian market. Existing buyers from
Europe will gain of already owning property in the
area. If they want to sell their property invested in
the Brazilian market, it will be very possible. The
house will be well exposed in the market, so a sale to
the highest bidder becomes a reality. By being exposed
in a market like Brazil it will also meet many
potential buyers of large parts of the world, which
will lead to good opportunities for the best returns
on the selected property.
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