International buyers seeing investment potential in Brazilian property
More international buyers are being attracted to investment property in Brazil with major sporting events encouraging them to see the country as more than just a second home location.
In particular the 2014 FIFA World Cup and the 2016 Olympic Games are focussing attention on the country, according specialist Brazil based agent uv10. The firm is now selling more off plan investor properties than anything else.
‘When we set up almost six years ago, we had a truly international client base including Brits, Americans, Australians, Canadians, Scandinavians and Dutch, who were mainly looking for a Brazilian beachside bolt hole for sunshine holidays,’ said sales manager Samantha Gore.
‘They were the pioneers, the ones who loved Brazil for its culture and cuisine, coastline and Carnival. Today the change is considerable. Ever since Brazil became an economic powerhouse, rich in oil, elevating millions upon millions of people from lower class to middle class and about to host famous global sporting events, the holiday home buyer has been all but replaced by the pure investor,’ she added.
For 2012 moving into 2013, uv10’s most popular product is low entry level priced investment property. They are proving particularly popular with British buyers.
Gore believes this is because British people have seen the positive impact of the London 2012 Games and want to try and reap the rewards from a nation that has far higher to climb in terms of improving its infrastructure and increasing its property values.
‘Nine of out 10 new enquirers refer to the World Cup and the Olympics with a view to taking advantage of the resultant investment potential,’ said Gore. She pointed out that in Natal, a World Cup host city, there will be a new stadium, improved transport networks and a legacy of job creation.
Meanwhile, the private consortium responsible for the construction of Sao Gonçalo do Amarante Airport on the outskirts of the city, the largest airport complex in Latin America, expect it to be ready by the end of 2013, perfect timing for the sporting events.
The firm’s two big sellers this year have been off plan products. They include Golden Fields and Natal Beach Cup, both in the north eastern region of Rio Grande do Norte.
The developer of the 50 unit Golden Fields project, due for completion in 2014, is offering a 6% four year renewable rental guarantee and there are just five units left. Recently launched Natal Beach Cup has the same guaranteed four year 6% rental return or full rental management for those choosing to operate outside of the guarantee.
With prices for the former starting at 167,309 Reals, around £50,000, and the latter starting at 110,059 Reals, around £33,000, with staged payments up to the June 2014 completion, these are described by Gore as an ideal hands free safe property investments.
Natal Beach Cup is a development of 23 one and two bedroom holiday apartments in Ponta Negra, one of Brazil’s most famous beaches just 15 minutes drive south of Natal city centre. Prices start from 110,059 Reais, approx £33,477.