Investment in Real estate - Brasil
The prices of
real estate in Brazilare, outside the southern Zone of
Rio de Janeiroand some upmarket areas in
Sao Paulo, still very attractive. The real estate market in Brazil is in its infancy, but will be booming soon.
Something in this field has already begun in Natal in North-East Brazil for instance, which is engaged in the construction of a new international airport.
When fully completed, it is planned to be the largest airport complex in Latin America. Operations are expected to start in April 2014.
An extensive network of charter flights and low cost companies that fly to Natal, Fortaleza, Salvador and many other destinations, make northeastern Brazil easily connected to major European cities and therefore an attractive location for a
second home in Brazil.
Finally, the Brazilian hospitality is a determining factor for over 90% of foreign investors in real estate. All these assets mean that international real estate agents are beginning to discover the quality of life and the incredible prices in Brazil. In some tourist cities, already 30% of the properties are in foreign hands.
If you just want to have a
return on investment, then an investment in real estate in Brazil is an obvious possibility. Bear in mind the location of the property is of great importance. Owning a small house or an apartment by the sea may be tempting, it is useless when it is not adequately accessible. A flat in a developing tourist area is better, because it offers more opportunities to let.
Another important factor while buying real estate in Brazil, is trust.
It is not uncommon for property on sale which ownership documents (‘escritoria’) are not in order.
In these cases, the seller often exasperatedly tries to show you invoices to prove that the property was paid for or remodeled by the seller, but best you hire a local specialized lawyer.
He will verify if the ownership administration is entirely in order or not. The expenses of hiring a lawyer do not outweigh the costs that it may subsequently have to certify ownership.
In Brazil, extreme caution should be taken in case of projects that are still in the start-up phase (‘lançamentos’). It is not uncommon in Brazil when property development plans are put suddenly on the longer finger or even cancelled entirely, after you paid your share.
The same goes for construction sites: be entirely certain that the legal status of your lot is in order to be build on. Like elsewhere, also in friendly Brazil there is always a risk that you do business with dishonest people. Let yourself be assisted by recognized real estate professionals or a Brazilian counsellor.