15. The Country of Brazil is Beautiful Diverse and Stable: There is a growing demand from people who want to have their second homes in Brazil because it is such an attractive country. It is economically and politically stable, and it is developing important infrastructure projects in its ports, airports, highways and railroads. This fact, along with the current level of international confidence in the country, is attracting a lot of foreign investors.
14. The Middle Class: The Brazilian middle class is going through a prosperous period, with growing indexes of income and employment. One sign of that is in recent data from the Caixa Economica Federal (CAIXA), a government bank, showing that those people who are younger than 30 accounted for 36% of the real estate financing deals provided by that institution in 2007. A young dynamic prosperous population ensures long term future growth in property and development generally.
13. Access to Credit: For years, Brazil's poor had little access to credit. And even if they could get credit, they could not hope to maintain payments on interest rates that were frequently among the highest in the world. That, combined with unemployment, low pay and the instability brought on by a struggling economy, led to an explosion in the number of people living in favelas (shanty-towns) scattered in and around Brazil's urban areas. But the economy has definitely turned - Brazil has had a GDP per capita increase of 8.32% for the last five years, which is currently growing slower than its Latin neighbors. However, the country has a well-maintained GDP per capita, which is estimated at US$5,518 for 2007 (mortgage loans still only occupy a very small part of Brazil's GDP, around 1.7 percent), and has also been very successful in fighting inflation, decreasing it from 14.8% in 2002 to less than 5% in 2007.
12. Favorable Interest Rates: Interest rates in Brazil have tumbled, falling from 25 percent in 2003 to 11.5 percent in 2007, thanks to a huge trade surplus and account balance from a raw material export-driven economy. Some banks are forecasting that standard lending rates will fall to 9.25 percent by the end of 2008. Both the minimum wage and workers' salaries are rising at levels that exceed the cost of living - allowing employees more disposable income - leaving households with more money for housing costs, something that can only serve to invigorate more interest in Brazil's property market.
11. Equality in Real Estate Purchases with Brazilians: In some of the world's most desirable countries foreigners are not legally permitted to purchase land or houses. In Brazil, foreigners have the same legal rights as Brazilians when it comes to Brazilian real estate. Brazil has abundant land resources, the largest economy in Central and South America and a very large labor force. Brazil has almost anything any international investor might want. The economy is on the upswing and is diversified.
10. Taxes: Associated property costs in Brazil such as taxes and maintenance costs are also low and this adds to the attraction for the investor. For a foreign investor to buy real estate in Brazil the only requirement is that they have a CPF number - which is like a social security number. And the number can be obtained within a couple of days. This number is a legal requirement as it enables the investor to be uniquely identified for taxation and title purposes. The Brazilian government has sophisticated and well developed real estate laws which protect the property owner whether they are a foreign or local owner and independent legal assistance should be sought for the entire purchase process to ensure the investor's rights are properly looked after.
9. It's the weather! Over 7,000km of breathtaking palm lined semi-virgin coastline. Near-perfect climate with average temperatures of 78 degrees, F. and a pleasant sea breeze with low humidity. Negligible risk from floods, hurricanes, earthquake, tsunami or international terrorism . Perfect for sports and adventure enthusiasts with famous wind and kite-surfing areas, world-class diving & snorkeling and deserted sand dunes for buggy riding. Beaches consistently rated in world's top 10
8. The mortgage market: Mortgages are being provided by big retail banks who retain an ownership stake in them, rather than securitize them as in America. Interest rates have fallen from around 16% three or four years ago; loan periods have grown from 12 to 30 years; and salaries have soared.
7. Oil. Last year, Petrobras, Brazil's partly state-owned oil firm, announced the world's biggest oil discovery since 2000: the Tupi field, which it hopes will produce between 5 billion and 8 billion barrels. Now the head of Brazil's National Petroleum Agency (ANP) says another nearby discovery might hold as much as 33 billion barrels, which would make it the third-largest field ever found in the world. With energy self-sufficiency Brazil is able to avoid the costs of huge swings in the price of oil.
6. Vulnerability: Brazil is less vulnerable to financial shocks than it once was. A large part of this is due to a combination of a central bank that acts independently and transparently, publishing minutes of meetings promptly on its website; and a floating exchange rate, adopted in 1999. Before then, whenever the current account deteriorated, the central bank was forced to hike rates, killing growth.
5. The World Cup. For Brazil, a country with a seemingly endless supply of football players, winning the football World Cup is the national obsession. Hosting the event, which comes round every four years, is going to bring Brazil to the world stage. On October 30th, 2007, FIFA, the world soccer's governing body, confirmed that the competition will take place in Rio de Janeiro, Brazil in 2014.
4. An improving environmental picture: Since the international environmental movement in the 1990s, an awakening of environmental consciousness among Brazilians, and even among some of the country's politicians, means that attitudes are at last starting to change. One aspect of the increased environmental consciousness is an awareness that nature attract tourists (and their dollars).
3. Currently the 10th Largest Economy in the World, Brazil will be the 5th Largest in 2050 as ranked by Goldman Sachs. When Brazil reaches its paramount in 2050, the beach property prices will be the same everywhere in the world. It is expected that beach property will continue to increase in value rapidly until 2050. This economic growth and stability creates international demand. It solidifies Brazil as a great place for real estate investors.
2. Safety: Is Brazil a safe country? One of the urban myths that surround Brazil is the question of safety and security. In fact, Brazil is no more dangerous than the main cities in Europe or North America. Most of the bad press about violence in Brazil relates to the gangs operating in the slums in Rio and Sao Paulo. Even in these mega cities, most of the crime is between the gangs and crime against tourists is extremely rare. Being sensible and streetwise is the key to trouble free and enjoyable stay anywhere in the world, including Brazil. Brazilians are further known to be very friendly people and it is extremely rare to see aggressive behavior from Brazilians. In fact, what you will see more than anywhere else in the world is a lot of smiling and dancing!
1. Brazil offers some of the best values in the world when it comes to buying and developing property.
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