Brazil is one of the four largest developing economies in the world. Goldman Sachs predicts that the country will be the 5th biggest global economy by 2050. It is also tipped as the next big investment hotspot when it comes to property.

Why Invest in Brazilian Property?

There are many reasons why property investors should invest in Brazil. Investment is encouraged in Brazil, and there are no restrictions for foreigners buying property and ownership is 100% freehold. Brazil has a large population of more than 180 million, with a small number of home-owners, therefore the rental market remains strong, offering good returns on Brazilian property investments. As the economy expands buying power among a growing middle class is likely to increase, causing property prices to rise: the exchange rate is also currently favourable for British buyers.

Popular places to buy include the major cities such as Rio de Janeiro and Sao Paulo – where some developers claim 18% rental yields are achievable – and beach resorts such as Natal, where a new International Airport and numerous new developments are attracting investors from around the world. One bedroom flats are listed on www.justoverseas.co.uk from as little as £20,000.

Search hundreds of Brazilian Properties & more Latin America at www.justoverseas.co.uk/brazilianproperty

Ten Top Tips for Property Investing in Brazil

Samantha Gore, Head of Sales and Marketing for Brazil experts www.uv10.com, tells us ten things you probably didn’t, but definitely should, know about investing in property in Brazil.

Brazil Property Investment

1. Brazil Property Investment: Cheap is not always cheerful.

Talented graphic designers are able to make the proverbial silk purse out of a sow’s ear but constructors on the other hand cannot make a good quality product using low-grade building materials, which is what will be used if the list prices are bargain basement. Cheap land could be another reason for low prices, so where exactly is it? A property in near-isolation is never going to be a good investment. Brazil is unimaginably big, occupying nearly half of the South American continent, so amenities could be far away, and when we say far away, on a scale many European’s would struggle to perceive.

2. Brazil Property Investments: Beachfront is not always blissful.

We know Brazil is a large country and it has a mammoth 7,400km of coastline to match, so you could end up in near-isolation again. Where’s the nearest shop, bar, restaurant? If you cannot answer that question then how are you going to sell your property on to a subsequent end-user? A good rule of thumb is that if Brazilians have bought in the area then it has something going for it, for this is a nation with famously good taste. Property in popular towns with laws protecting them from overdevelopment are the most lucrative option, beachfront or not, particularly if there are plenty of local activities to attract and occupy the tourists.

3. Brazil Property Investments: Estate agents do tell the occasional lie.

Has your chosen estate agent ever been to Brazil or are they simply regurgitating a mixture of the developer's marketing material and Wikipedia? Be wary of the latter. It’s much better for you, the customer, if your agent has been on site, cast a critical eye over the location and qualities and is able to offer their considered opinion.

4. Brazil Property Investments: Build your own is rarely a smart move.

If all you want is a holiday villa don’t be tempted to source a plot and build your own. Brazilian red tape can be a real nightmare and finding reliable contractors even worse. While prices are so good buy though a developer who has put in the hard yards for you and can offer security and rental returns, some even guaranteed.

5. Brazil Property Investments: Safety first.

Common sense dictates that even in the very safest parts of Brazil, such as in and around Natal, in a country where there is a marked disparity between rich and poor a detached villa on its own plot is vulnerable if left unoccupied for months on end. Stick to multiple-dwelling resorts, many are gated with security for absolute peace of mind and as a bonus they’ll also maintain the gardens so you don’t come back to a wilderness.

6. Brazil Property Investments: License to Build.

Those peddling cheap building plots may well truthfully tell you that they have ‘permission to build.’ However, what they may fail to add is that this is usually just outline planning permission and not an actual building license. Getting your license may prove extremely time consuming and there are also different types of land title in Brazil so you need to make sure that yours has the right one for the job.

7. Brazil Property Investments: Legal Eagles.

Enlist the services of an independent lawyer licensed to practice in the State in which you’re buying. Finding reliable and efficient lawyers in Brazil can be tricky so don’t hesitate to ask your estate agent to recommend someone who has done good work for its clients in the past. You can decide at the end of the day who will do the best job for you.

8. Brazil Property Investments: Keep a paper trail.

Is your money going into Brazil? Aside from marketing costs which may be treated separately and be payable in Europe, funds transferred to Brazil will be automatically registered by the Banco Central to conform with money laundering regulations. This paper trail is important when it comes to reselling and getting your money back out and something you should take seriously.

9. Brazil Property Investments: Guaranteed rental isn’t the be-all-and-end-all.

Is the ‘guaranteed’ rent gross or net of condo fees and bills? How long is the income guaranteed for? How much private use of your property does the rental contract entitle you to? Is the ‘guaranteed rental’ actually funded by you as you’ve paid an artificially inflated purchase price? Read rental contracts carefully and do your research. Better to buy in an area with an active rental market or great facilities to attract tourists, then, whether the rental is guaranteed or not, you stand to make good money regardless.

10. Brazil Property Investments: Ask, ask and ask again.

Your estate agent is there for advice, guidance and information and should have thorough product knowledge. You are entitled to have sight of all information such as licenses, contracts, plans and so on once it becomes available. Buying off-plan involves a lot of research and a sprinkling of faith so get your facts straight.

For more information on Brazil property investment and to find out about uv10’s latest projects visit www.uv10.com or telephone 0845 643 1036