FAQ – Top 10 Most Common Questions About Investing In Brazil

Question 1: Why should I invest in Brazilian properties now? Is there room for further growth?

Brazil has been one of the fastest-growing property markets in the world and we expect this trend to continue for at least the next five years and beyond.

The government is actively encouraging its people to buy their own homes with generous social housing programmes. One particular project – Minha Casa Minha Vida in Natal – also happens to provide investors with an easy route into the Brazil market that will give more than a 100% return on investment inside a year.

 

Question 2: Can a foreign national legally buy real estate in Brazil?

Yes, there are no restrictions on foreign investment in Brazilian property. Foreigners also have the same property rights as Brazilians, which means investors will get free & clear title to any property they choose to invest in.

There are literally millions of foreign nationals who own property in Brazil and all you need to join them is a Cadastro de Pessoas Fisicas (CPF) number. This is a tax registration number which you can apply for via the Brazilian embassy in your home country or in Brazil. As soon as you have received the CPF you can be legally identified as the owner of a property.

 

Question 3: Can I get finance to invest in Brazil Property?

At present, foreigners are unable to get finance to invest in property in Brazil. The opportunity right now is for cash investors and with property prices low the market is still accessible without the aid of finance.

Alternatively it is possible to raise finance in your country of origin or invest via a self- invested personal pension.

 

Question 4: How do I profit from an investment in Brazilian property

  • Social Housing Projects

    Brazil is probably one of the best markets in the world you can invest in for high capital returns. Those investing in Minha Casa Minha Vida projects can enjoy a guaranteed 15% return in the first 12 months of investment. With the scheme underwritten by the Brazilian government the developers are in a position to guarantee a handsome return on your investment e.g. an investment of £46,000 could generate a profit of £6,900 or if you were to increase this investment to £115,000 – the profit would increase to £17,250 inside a year.

  • Invest in Holiday Properties

    Brazil is one of the world’s best holiday locations and with the price of property in popular holiday resorts still less than £70,000 and yields of 5% and more, the opportunity is there for the taking. Keep in mind that although many developments come with guaranteed rental, the returns are unlikely to be as high as with Brazil social housing.

  • City Centre Apartment Developments

    This is the classic pure property investment strategy where you can invest in a property costing less than £55,000 and enjoy rental yields of 8-12% depending on which city you invest in. The rental market in Brazil’s cities is still young and suitable properties are in short supply. This makes it easier to generate positive cash flow from the start of your investment.

  • Hotel Rooms

    Hotel rooms are a low-risk kind of property investment that allows you to buy into an existing hotel and gain a steady profit from income generated by the room. With occupancy rates high in most cities in Brazil this is a particularly attractive option particularly when it is backed by a major hotel brand and the investment is full managed for you.

 

Question 5: Can there be multiple buyers for each home?

If you are thinking of investing in Brazilian real estate with your business partners you will not encounter any problems unless there are more than 10 of you. Up to 10 individual names can appear on a title deed, which means that Brazil is open to fractional ownership.

 

Question 6: What taxes will I need to pay when investing in Brazilian property?

Brazil has a very liberal tax regime and the costs of property ownership are a fraction of what they are in Europe or the United States. Notary fees are charged at approximately 2% of the property value, Deed registration 0.75% and legal fees up to 2%. Property tax in Brazil is currently just 0.6%.

Capital Gains Tax in Brazil is 15% of any declared gains, subject to double taxation treaties in place between Brazil and the investor’s country of origin. It is best to seek advice from a taxation expert before purchasing if you are unsure about any other issue relating to tax.

Average property taxes for a home in Brazil are likely to cost between £100 – £200 annually, depending on the value of the property. It is also good idea to get cover for your investment and this too is relatively inexpensive. Residential insurance to cover everything from fire to theft, will be between £30 to £70 annually, however prices can vary and it is best to check before you invest.

 

Question 7: Which locations in Brazil give you the best return on investment?

The major cities of Sao Paolo and Rio are ideal locations to take advantage of an emerging rental market fuelled by strong demand for property in the best areas. Fortaleza and Natal are extremely popular with foreign investors and locals alike who are attracted by the excellent quality of life.

 

Question 8: How long do you suggest an investor holds on to the property to achieve maximum capital gains?

We suggest holding on to the property for a minimum of five to seven years for maximum appreciation potential. It may be worth hanging on to some investments for longer than this, such as in the case of hotel rooms which sometimes offer a guaranteed buy-back at the end of a 10-year period.

 

Question 9: What is the outlook for the rental market in Brazil?

Rents are expected to remain constant and/or continue to increase as the costs of buying property continues to rise. New construction is currently not enough to satisfy demand for property and is unlikely to be for some years yet.

There is a huge shortage of rental properties in cities such as Rio and Natal and landlords are attempting to double rents, particularly in Rio. When it comes to renewal of contracts landlords often cash in.

 

Question 10: Can I invest in Brazilian properties without visiting the country personally?

In certain cases investors may not have the time to travel to Brazil to view properties. There is no reason why anyone can’t invest in property without visiting the country, however it is advisable unless you can trust an agent to complete the process on your behalf and take care of all the necessary paperwork.

Assuming your agent has expertise in Brazil property, this can be an ideal solution that will allow you to benefit from the lucrative opportunities in the country without needing to take time out of a busy schedule.

 

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Investment Hotspots In Brazil – Timesaving Guide

The property market in Brazil has changed rapidly since 2008 and property price growth in cities such as Sao Paolo, Rio, Fortaleza and Natal has been nothing short of spectacular in this period. However, where once you had several investment options in Brazil, as the market begins to mature in 2014 it is worth looking in more detail at the best cities for cash flow and solid long-term capital growth.

Over the past few months we have carried out an in-depth analysis of the most profitable investment locations in Brazil and shared them with you. If you haven’t had a chance to read about them yet, please use the links below to browse through the articles:

You can also have a look what’s where on the map below:

Brazil Hotspots Map

Should you have any questions or comments, please share them with us in the comments below!

 

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Brazil Investment Hotspots – Bahia

Bahia is located on the north-east coast of Brazil. The area has some stunning beaches and a fantastic year-round tropical climate. Prices have been increasing at around 20% per annum, but the area still remains affordable and is at the centre of Brazil’s tourism push.

Bahia is one of Brazil’s original tourist states and is certainly geared up for investment with some of the best infrastructure in Brazil. The World Bank has given Bahia a $16 billion infrastructure grant, as part of a 15-year initiative to attract tourists. Major developers and hotel operators have been investing heavily in the area as demand from local buyers, foreign investors and those from elsewhere in Brazil rises.

If you are looking for a traditional holiday-let investment, Bahia may be the best opportunity Brazil has to offer, but don’t expect the profits you might make by investing in buy-to-let elsewhere.

 

Key Area: Arraial d’Ajuda

This sought-after Bahia village is located on a plateau overlooking some spectacular coastline. If Bahia is the place for holiday home investors, then this is where the Brazilians are looking to invest in theirs.

Arraial is close to all the facilities you might require from a holiday resort, yet it still retains its village charm. Due to its unique location and popularity with foreign investors and holiday-home investors in Brazil, Arraial d’Ajuda is destined to become one of the most sought-after places to invest in Bahia.

There is an international airport close by, which means Arraial is well connected by air as well as road to the rest of Brazil. The airport is well served by domestic airlines and chartered flights from Europe.

 

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Everything You Need To Know About Purchase Costs In Brazil

Those investing in Brazilian property right now are enjoying a cocktail of high capital growth and solid rental yields. This is attracting the attention of investors from all over the world who are keen to secure their own piece of paradise while conditions remain ripe for investment. Real estate is still cheap by European and US standards and so is labour, so you have the ideal conditions in place for property investment.

In the same way that one person may want a BMW and the other a Ferrari, we are aware that each client will have a different investment objective and also set out from a different starting point. However, regardless of which property type or location you choose, typically similar purchase costs would apply:

Government Purchase Tax
This is between 2% and 7% depending on the cost of the property.

Stamp Duty (also known as Purchase Tax)
This is between 3%-4% of the purchase price.

Notary Office (Title Deed and Registration of the Deed)
Brazil applies a low 2% property transfer tax on real estate property.

Administrative Expenses (CPF Number)
Approximately 1% of the purchase cost.

Legal Fees
Approximately 1%-2% of the purchase cost

 

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10 Good Reasons To Invest In Florida’s Cash Flow Positive Properties

Reason 1: Grab Yourself A Bargain!

We all like a bargain and as property investors we like them even more so. However, there are signs that those huge $150,000 discounts are coming to an end as the market recovers and growth returns. Property remains undervalued, so taking advantage of this window of opportunity should be high on any investor’s agenda.

 

Reason 2: Strong And Growing Tourist Market

Tourism is worth an annual estimated $57 billion to the Florida economy and a 4.1% increase in hotel bookings in 2012 has been greeted as a sign that Florida is well on the road to recovery. The extra jobs this brings to the state will provide an extra boost to the rental market in areas close to tourist hotspots like Orlando.

 

Reason 3: No State Tax

There is no state tax in Florida which has positioned the state as a shelter state for wealth for both individuals and corporations and of course you, the property investor.

 

Reason 4: Unique Combination Of Knowledge And Infrastructure

No other location in the western hemisphere can match Florida’s unique combination of a strategic geographic position, strong knowledge base, state-of-the-art infrastructure, entrepreneurial spirit, and concentration of corporate and financial resources.

 

Reason 5: Industry Growth

The area’s industry growth is focused on the professional medical and business service sector; all these are likely to see significant growth and investment both now and in the near future.

 

Reason 6: Strong Rental Demand For Quality Real Estate

Rental returns on tenanted properties in carefully selected areas can yield approximately $10,000 per annum.

 

Reason 7: Foreign Direct Investment

The state has emerged as a hotspot for foreign direct investment (FDI), where total holdings by non-US companies are valued at $40 billion. Investment brings employment and demand for housing.

 

Reason 8: Fastest Growing U.S. State

Over 350,000 people move to Florida every year, making it the fastest growing US State. The Gulf Coast is particularly popular with second home buyers and investors.

 

Reason 9: Strong Demand

Baby Boomers are retiring in record numbers and flocking to the Sunshine State to invest in second homes. These are joined by investors notably from Canada and other international investors looking for their own piece of the Florida sunshine. This trend is likely to continue for the foreseeable future.

 

Reason 10: Price Growth

Prices are rising in the large metropolitan areas, most notably in Orlando, Tampa and Miami, which have all seen astonishing growth, even before the recovery was underway.

 

Are you ready to invest in Florida? Have a look at our properties here.

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Brazil Investment Hotspots – Maceió

Maceió is a city that has only recently caught the eye of international investors due to its spectacular beauty and competitiveness of prices in comparison with other hotspots in Brazil.

Large multi-national developers are now actively developing in the region. With a high occupancy rate and increasing interest from those looking to buy property in the region, this could be an area to watch – though the market is less well defined than larger cities such as Sao Paolo and Natal.

 

Key Area: Guaxuma

Guaxuma is one of the hottest areas to invest in Maceio property. It is here that you will find luxurious family-owned villas that are currently selling at low prices compared to comparable locations in more fashionable cities.

The many restaurants and bars opening up in Guaxuma are here to serve an expanding population employed in a growing number of local businesses. This is not an area that has suffered from over-development, therefore there are plenty of opportunities to enter into property investment in the city at low prices.

 

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Holiday Home Or Investment Property – What’s Right For You?

For investors looking for positive cash flow, the rental market, particularly in South Florida is seeing strong growth. Rents increased 2.9% year on year to 2012 in Florida as a whole, 5.6% in Miami Fort Lauderdale Metro and 3.8% in Orlando Metro area. On the other hand, if you plan to use the property as a holiday home and regular cash flow is not an issue, then a holiday home will be the perfect choice for you.

Each type has its advantages and disadvantages, especially in the US where land is divided into long-term ‘residential’ zones and short-term ‘holiday’ zones. Before you invest your money, make sure that you’ve found the right property type!

 

Holiday Home

A holiday home investor will crave the excitement Florida has to offer, the beaches, Disneyland and the fantastic climate. The chances are you will make a good return on your investment by renting the property and this is why historically, people are so attracted by the idea of a property in America’s Sunshine State.

Thanks to the great USA real estate downturn, property is now so cheap you can pick up villas in Florida with a pool for less than half the price of a two bedroom apartment in Bolton, UK. However, before we dive into the pool let’s take a closer look at some of the pros and cons, which one unfortunate investor failed to do fully before taking the plunge.

As the story of one UK investor tells us… “I bought a villa in Florida three years ago. I chose a location I knew attracted a fair amount of tourism. I figured that I could enjoy the twin benefits of a rental income in peak season and a place to spend my vacations and get away from the cold grey winter days back in the UK.”

So far so good, however he didn’t consider all the associated costs that he failed to cover due to longer void periods than he would otherwise have had with a Florida tenanted property. If we look beyond the obvious attractions and take off the rose tinted specs, we find there are costs associated with running this particular holiday home that this investor didn’t foresee at the time. Consider the following:

  1. Council Tax
  2. Community Fees
  3. Property Booking Fees
  4. Property Management Fees
  5. Property Cleaning
  6. Building Insurance
  7. Contents Insurance
  8. Furniture
  9. Pool Cleaning
  10. Electric Bills
  11. Water Bills
  12. Telephone Bills
  13. Internet Bills
  14. Lawn Cutting
  15. Annual Hotel Licence

As you can see owning a holiday home in Florida can be an expensive business and you will need deep pockets, even if the property appears to be a bargain. That said, depending on the area and the season, you might also see the benefit of $700 to $1,200 a week for a four-bedroom detached property in Florida.

You will need to rent the property for more than 30 weeks a year in Florida to make a potential return. Outside of peak season it will be more challenging to find regular tenants without you or your management company putting in some hard work on advertising your property and even more work dealing with the needs of multiple tenants during the main holiday season.

However, if you are looking for a lifestyle investment, then a holiday home is the right choice for you, but you must be prepared to accept the higher running cost that comes with such an investment.

 

Investment Property

The most profitable way to make money from Florida property is to choose properties that already have the tenants in place. Like any good investment this will require a degree of sacrifice, you won’t be able to spend your holidays in it, but it will turn the notion of a “holiday home” on its head.

A tenanted property in Florida will fund your holiday and more importantly pay for itself with steady cash flow. Your tenanted property is then your “holiday property” for a few reasons:

  • It will reduce your associated property costs by more than half.
  • It will produce a constant and steady flow of income.
  • You can use the savings and profit to spend on holidays.

A famous economist named Paul Samuelson once said, “Investing should be more like watching paint dry or watching grass grow, if you want excitement take $800 and go to Las Vegas.” 

Before you fly west, the exciting thing about Florida tenanted property is that there are now opportunities to earn a profit of up to $8,000 per annum based on net yields of between 7-10%. This is after you have paid out the following:

  1. Council Tax
  2. Community Fees
  3. Property Management Fees
  4. Building Insurance
  5. Contents Insurance

Now doesn’t that sound more exciting than watching paint dry? Also imagine those extra holidays you could have with that sort of rental profit. So, instead of taking a bet on a holiday rental, I would recommend a more relaxed route to property wealth generation, where the tenant pays your mortgage and costs – allowing you time off to enjoy your holidays.

If you have any questions or comments, please put them in the comments section below and we will get back to you! In the meantime, have a look at the properties we have for sale in Florida.

 

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7 Tips You Should Know Before Investing In Brazil

Tip 1: Register Your Money

The money you bring into Brazil to invest in property should first be registered with Brazil’s Central Bank at the time of purchase. This will avoid problems further down the line when you decide to sell the property and take your cash home.

 

Tip 2: Seek Advice

A foreign national has the same legal rights as a Brazilian when it comes to property ownership and is also subject to the same laws. If you are new to investing in Brazil it is essential that you seek advice from someone who knows the market and the best places to invest.

 

Tip 3: Your Property Type

Decide on your investment strategy. There are many opportunities to invest in coastal holiday property taking advantage of short-term lets. The downside is, Brazil has many miles of coastline and vacancy rates will be higher. Unless you are investing purely as a lifestyle choice, properties in areas close to business districts and regional transport connections are usually best.

 

Tip 4: Find The Right Location

Brazil is a huge country; however the best areas for foreign investors to invest in Brazil at the moment are Natal, Fortaleza, Rio de Janeiro and Sao Paolo. In Natal, properties around beach resorts close to the city are seeing yields of around 10% a year. Units are currently available from £60,000 in the best developments.

 

Tip 5: New Is Better

Invest in new developments – as these will find more tenants attracted by superior amenities. New properties will be better suited to meeting the aspirations of the growing middle classes and young professionals living and working in Brazil’s major cities.

 

Tip 6: Register Yourself

Before investing in Brazilian property you should apply for a tax registration number, known as a CPF – which stands for Cadastro de Pessoas Fisicas. This is a tax registration number that enables investors to be identified for title and taxation purposes.

 

Tip 7: Know The Timescale

The purchasing process is fairly quick in Brazil – however it is recommended that you allow approximately three months from the first down payment, which will include a month for the formal issue of the deed.

 

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Facts and Figures About Florida, The Sunshine State

It’s no wonder that Florida’s combination of temperate climate, outstanding recreational amenities, economic opportunities and no state income tax has consistently made the Sunshine State one of the most desired places to invest. It has beautiful beaches, fabulous weather and a friendly business climate with no state income tax. These are the things that brought people to Florida in the first place, and will continue to attract them.

Have a look below at some of the key figures about the state of Florida, and if you would like to know more, please ask your questions in the comments below.

Nickname: The Sunshine State

Population: 18,000,000

Capital: Tallahassee

Languages: English/Spanish

Time Zone: GMT -6

Climate: Tropical

Commercial Airports: 19

Land Area: 139,697 sq. km

Currency: United States Dollar (USD)

GDP: $38,000 (per capita)

Foreign Direct Investment: US $33.6 billion

Exports: US $45 billion

Imports: US $55 billion

Interest Rate: 25%

Inflation: 27%

Unemployment: 9.4%

 

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Brazil Investment Hotspots – Fortaleza

Fortaleza, the capital of Ceará, has seen property prices rise in double digits in the last 12 months and in excess of 20% per annum before that. It is the wealthiest city in the north-east of Brazil and is currently experiencing a tourism boom. This is because the beaches in the city are second to none, making it one of the most appealing cities in Brazil.

Residents of Rio and Sao Paulo who like a break from the hustle and bustle of the big city believe Fortaleza to be more exotic. This makes it a popular holiday destination for Brazilian people and the middle class who aspire to buy holiday homes there. The business and middle-class community is particularly strong and demand for city-centre apartments is at an all-time high pushing up the value of property to record levels.

The exciting thing about this city for investors, is that it is still seeing development as part of a 15-year plan to improve local transport and infrastructure. President Rousseff has committed a further R$2 billion worth of further investment.

This investment will pay for the ongoing development of the rail system. The next stage of the city’s metro extension will include 12 km of subway line east of Fortaleza, with 12 underground stations and one above-ground. The new railway system will serve the municipalities of Fortaleza, Caucaia, Maracanaú, Maranguape and Pacatuba.

 

Key Area: Meireles

Brazilians love their beaches and the best beach in Fortaleza can be found in Meireles, which has excellent infrastructure including shopping centres, supermarkets, restaurants and schools.

Having easy access to the beach in Fortaleza is what the locals want and aspire to as they take part in a range of activities, including beach volleyball, surfing and chilling out in the beach bars. Meireles Beach is most definitely, the place to be seen in Fortaleza even if you’re just taking a stroll.

This has of course, stimulated demand for property and a number of high-rise apartment developments have been built to serve local-demand.

 

Key Area: Porto das Dunas

Porto das Dunas is an area where wealthy local residents go to relax and unwind from a hard day at the office. It is also well placed for a short commute into the city centre and is a popular weekend destination for Fortaleza’s residents.

The area is also among the most attractive in the city with stunning natural landscapes, white sand dunes, crystal-clear water, lagoons and groves of palm trees, to name but a few of the attractions. It is also home to Beach Park, South America’s largest aquatic park.

With a wealthy population living in Porto das Dunas, investors can expect healthy capital appreciation for years to come.

 

Key Area: Aldeota

Aldeota is Fortaleza’s hub of business and social activity and is largely populated by middle and upper middle class residents. Here you will find several of the city’s major shopping complexes and high-end office buildings, along with a wide choice of great restaurants and nightspots. Again, expect property prices to rise here fast and the rental market to grow strongly.

 

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Brazil World Cup 2014 – Let The Games Begin

The day has finally come and excitement is spreading rapidly across the world – Brazil World Cup is about to kick off.  

We’d love to take this opportunity to wish you all a great month! To those of you who are lucky enough to be travelling to this wonderful country and those who will enjoy the games in front of a TV in a pub or at home! Brazil has won World Cup a record-breaking 5 times, will they succeed again? 

For us, at Colordarcy, this year’s games are truly special as it was Brazil where our property investment journey started, and thanks to beautiful Brazil – we are here today!

It was love at the first sight – we couldn’t resist Brazil’s rich culture, friendly people, beautiful environment or the property market. Of course – much has changed since that time, our investment portfolio covers much of the world right now, but it was Brazil that inspired us in the first place and it shall stay close to our hearts forever.

We believe this will be the greatest World Cup ever…because Brazil knows how to put on a party!

Have a great time everyone!

The Colordarcy Team

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Florida Investment: Economic Snapshot

The Overview

After a long period where there seemed to be no end to falling property prices, there is a positive mood emerging in Florida thanks to stabilisation. It had to come – property prices have fallen dramatically from the peak of the US housing boom.

Investors can be confident that the Florida property market is on a sustainable path to recovery due to a rare combination of low prices, an improving economic picture, low interest rates and media obsession with highlighting how Florida property is such excellent value for money.

We anticipate that the Florida economy will follow a pattern of recovery similar to that of the U.S. as a whole. The state broadly follows the same trend lines with the slow recovery in recent years just beginning to pick up speed after a stuttering start between 2010 and 2012.

 

What’s The Rush??

Prices are at rock bottom which is encouraging domestic and international cash investors to snap up property before prices begin to increase. More upward pressure on prices will come as a consequence of growth in the state population.

With a whole generation of so-called ‘Baby Boomers’ reaching retirement and looking for second homes in areas around the coast, competition for property will force prices higher in the longer term as the market recovers. The baby boom generation now represents 39.7% of Florida’s total population according to Florida Office of Demographic Research.

 

The Green Light

Economic indicators are an important consideration for any property investor and in Florida we have established that recovery is underway; albeit at a slower pace than was the case following previous recessions. There are plenty of green shoots appearing in Florida, but it will take more than sunshine to get it growing to the levels that brought the last housing boom.

To a large extent Florida’s economic recovery will depend on what happens at a national level. The good news for those investing in real estate is that the worst appears to be over and all the indications are that Florida is entering a new growth cycle. This is the time to maximise profit from your investment. Although there are new properties being built, the developers can’t keep up with the increasing demand for accommodation.

For investors looking for positive cash flow, the rental market, particularly in South Florida is seeing strong growth. Rents increased 2.9% year on year to 2012 in Florida as a whole, 5.6% in Miami Fort Lauderdale Metro and 3.8% in Orlando Metro area.

The outlook for rents in Florida overall is positive and if we look more closely at Orlando and Miami in recent months all the evidence points toward significant increases in the medium term. The continuing restrictions on lending will only add to the absorption of good quality rental properties for the foreseeable future restricting supply and increasing rents.

 

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Why Should You Invest In Brazil Property?

Brazil is home not only to the world’s most idyllic beaches and tropical rainforests and of course one of the world’s best football teams; it is also home to the world’s most exciting property market.

Behind the sun, sea and samba dancing, is a country that can now be counted among the giants of world economic powers. Brazil has been one of the runaway success stories of the past decade even with the rude interruption of a major economic slowdown elsewhere.

With the World Cup arriving, followed by the Olympics in 2016 and major off-shore oil discoveries, has there ever been a better time to invest in Brazil?

Brazil offers a unique combination of emerging market conditions backed by a strong economy. You also have very good infrastructure with well-established airports making travel in and out easy. It is just as easy for foreigners to move money in and out of the country, which is crucial.

 

What Can You Count On When Investing In Brazil?

  • Rental yields between 8% and 11% per annum
  • Capital growth of 10% to 15% each year
  • No restrictions on foreign ownership
  • Best yields in Rio, Sao Paulo, Natal and Fortaleza
  • Optimal investment exit point in 5-7 years

 

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Why Do Investors Flock To Florida?

Florida is the home of the Kennedy Space Center, Disneyland and more importantly for us, properties available at heavily discounted prices with the potential to generate high returns on investment. This might be the home of Disney, however this is no fantasy world – there is an exceptional opportunity to invest while property prices are at the bottom of the cycle. Investors should already be taking advantage in an area with outstanding growth and economic prospects.

Apartments, townhouses and villas in select communities and desirable areas are available with prices starting from less than $100,000 and these properties certainly offer high cash flow rental returns and some are offered with tenants already in place. The key to being successful in this market is selecting heavily discounted property in areas with high tenant demand. It really is that simple.

As the US economy slid into recession and property prices fell dramatically, developers and homeowners in Florida faced incredibly tough market conditions. The consequences of which are still being felt today – the good news for investors is that there are now clear signs of a sustainable recovery.

The rental market is also healthy as you might expect, with demand for property high in this recovering market. Many families are also seeking rental property as tight mortgage lending conditions continue. Developers now feel brave enough to begin developing land they have been holding too for the past few years, which is another green light for investors.

We have carried out extensive research into Florida, narrowing down the focus to specific hotspot locations and places of interest that have rock bottom prices. These are already showing signs of an upward trend that will continue to rise throughout 2014 because:

Florida is on course to break the 20 million population mark during 2016. This will make it the third most populated state, surpassing even New York.

Low property prices will continue to attract cash buyers and particularly foreign investors.

The first wave of the baby boom generation will be hitting retirement and many will want to spend that retirement living in Florida as we are already seeing. The U.S. national recovery is already underway.

>>See what you can get in Florida!<<

 

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Brazil Investment Hotspots – Sao Paolo

Even as I am writing this, property prices are still rising in double digits annually in Sao Paulo. The Sao Paulo property market was only just beginning to boom back in 2008 and six years later in 2014 it has still not run out of steam. The city is one of the most sought-after places to live in Brazil and also Brazil’s largest city.

Sao Paolo was once more famous for its slums, however the government is making real attempts to raise the living standards of its population. There remains a lot of work still to be done, but as with any major city there are good areas and not-so-good areas.

The city is continuing to attract many Brazilian and international companies, creating more jobs and supporting the growth of middle-class professionals living and working in the city. An investor in Sao Paulo today can expect a combination of high capital growth and positive cash flow from rental income.

 

Key Area: Higienópolis – The Neighbourhood Of Health

The Neighbourhood of Health is an area that has been developing since the 1970s and is seen as one of the best areas to live in the city and certainly one of the best places to invest.

Transport links are among the best in the city and the arrival of the subway system has helped increase the number of residents who value the ease of access to important areas of the city.

The blue metro line serves the residents through three stations: St. Jude, Health and Place of the Tree, as well as Santa Cruz. Investing in locations close to these stations and the local Bourbon Shopping area is likely to bring good rental income.

Back in In July 2008 the price per square metre was US$3,000 – this has now almost doubled to US$5,997, according ZAP research.

 

Key Area: Vila Romana

Vila Romana is one of the up-and-coming areas of Sao Paolo and is currently seeing its own mini construction boom with a number of bars, restaurants and other retail outlets being built to satisfy the growing number of middle-class residents.

Prices in this area have risen 129.5% in less than four years. The price per square metre is currently US$7,006.

 

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Which Type Of Brazilian Investment Are You?

Social Housing Projects

Brazil is probably one of the best markets in the world you can invest in for high capital returns. Those investing in Minha Casa Minha Vida projects can enjoy a guaranteed 15% return over 12 months of investment. With the scheme underwritten by the Brazilian government the developers are in a position to guarantee a handsome return on your investment e.g. an investment of £46,000 could generate a profit of £6,900 or if you were to increase this investment to £115,000 – the profit would increase to £17,250 inside a year.

Holiday Properties

Brazil is one of the world’s best holiday locations and with the price of property in popular holiday resorts still less than £70,000 and yields of 5% and more, the opportunity is there for the taking. Keep in mind that although many developments come with guaranteed rental, the returns are unlikely to be as high as with Brazil social housing.

City Centre Apartments

This is the classic pure property investment strategy where you can invest in a property costing less than £55,000 and enjoy rental yields of 8-12% depending on which city you invest in. The rental market in Brazil’s cities is still young and suitable properties are in short supply. This makes it easier to generate positive cash flow from the start of your investment.

Hotel Room Investment

Hotel rooms are a low-risk kind of property investment that allows you to buy into an existing hotel and gain a steady profit from income generated by the room. With occupancy rates high in most cities in Brazil this is a particularly attractive option particularly when it is backed by a major hotel brand and the investment is full managed for you.

 

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How To Use Cement To Predict Property Growth

Today, I will explain how you can predict housing markets, just by watching how much cement is being bought. 

My analysis will focus on one of the fastest growing property markets in the world today, Istanbul. We have seen growth of 17% in 2013 and Istanbul ranks 1st in the latest Price Waterhouse Cooper survey, “Emerging Trends in Real Estate Europe 2013.”

There are many reasons for the strong house price growth in Istanbul, spanning from the demographic dynamics of a young and growing population, the growth of income and tourism, the growing foreign investment, through to the domestic real estate market. 

When assessing a property market there are many factors that you can use – most of them you probably know already. However, reviewing data that shows how “the cement” is flowing, is another method that can give you great insight. 

turkey-cement-prices.png

As we look at the chart above, it is logical to conclude that the growth of house prices is accompanied by a strong increase of Cement Domestic Sales, indicating a rising demand in the real estate sector. 

If I reviewed the Cement Domestic Sales in say two years’ time and saw a drastic downward curve, I would keep a closer eye on the market place and probably limit my investment into the region. A slowdown in Cement Domestic Sales, could mean demand is falling – which is never a good ingredient for property growth. 

The vibrancy and forward motion is with Istanbul for sure. The government is undertaking a series of major infrastructure projects, such as; the construction of the third Bosphorus Bridge, the building of an artificial canal connecting the Sea of Marmara to the Black Sea and a new airport is also planned for Istanbul. 

In summary; the Cement Domestic Sales are booming, international investors are pouring in from 183 countries and double digit growth has been achieved every year since 2009… No wonder Istanbul is ranked the number one in emerging market investments today. 

Top Istanbul Opportunity To Add To Your Portfolio 

Inci Palas

Inci Palas

  • Prices from £44,000 / $69,150
  • 12% Rental Guarantee Over Two Years
  • Key-Ready
  • One, Two and Three-Bed Apartments
  • 50% Projected Growth
  • No Finder’s Fee Guarantee

>> See More Details About Inci Palas <<

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Facts and Figures About Brazil

Ever since Brazil declared its independence from Portugal in 1822, it has become one of the fastest growing economies in the world. It is the largest country in Latin America, the 5th largest in the world and its name comes from the name of the tree called ‘Brazil Wood’.

 

There are 13 cities with over 1 million residents in Brazil. It has the second highest number of airports in the world, the tenth largest railway network and the third largest road network on our planet. Following its motto ‘Order and Progress,’ Brazil has indeed reached a very strong position on the global market.

 

Some of the biggest achievements include successful reduction of economic inequality within the Brazilian population and complete energy independence, which is quite an achievement for a country of that size.

 

Below you can find the most recent statistical overview of Brazil:

 

Population: 201,032,714 (5th)

Land Area: 8,514,877 sq. km (5th)

Capital City: Brasilia (2,789,761people, 5,802 sq. km)

Largest City: Sao Paolo (11,316,149 people, 1,522.986 sq. km)

Language: Portuguese

Time Zone: GMT -2 to -5

Climate: Tropical/Temperate

Currency: Real (R$ or BRL)

GDP: US $10,958 (per capita), 2.4%

Foreign Direct Investment: US $50 billion

Exports: $256,041 billion

Imports: $226,251 billion

Interest Rate: 10.5%

Inflation: 2.84%

Unemployment: 4.3%

 

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5 Main Reasons Why Student Accommodation Makes A Perfect Investment

I once lived in a five-bedroom house with four other students in what was known as Cardiff’s student village. The house was furnished with second hand furniture, the kind that most people would throw into the nearest rubbish bin and forget about. My friends and I did not care. As for me, I was riding the crest of a wave at just being given that opportunity to study at one of the UK’s leading universities.

I thought nothing about paying the old landlord £300 a month for my room. Most students don’t. Then soon it began to dawn on me – a house that holds many books is also a good store of wealth. Many things have changed in the decade or so since then, apart from one property investment that has always stood the test of time.

 

5 Reasons Why Student Property Makes A Perfect Investment:

  • Student Property In The UK Is In High Demand
  • Rental Yields Are 8% Plus
  • 68% Of The UK’s Top University Cities Have Seen Student Rents Increase
  • Student Property Offers A Low Cost Entry Into UK Property Investment
  • It Is Easy To Invest In UK Student Property From Anywhere In The World

>> Browse Our Student Properties Now <<

 

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Brazil Investment Hotspots – Rio De Janeiro

Rio is booming, in contrast to Sao Paolo which continues to see steady growth. Rio has exploded in the last five years and some real estate agencies reported a 50% increase in house prices in the space of just nine months following the Olympic Games announcement.

According to real estate analysts Globo, property values in Rio have increased by 100% in the space of five years. A whole industry has sprung up around this growth, where specialists in real estate are in big demand.

“The estate agents and managers need to pay special attention to the customer to keep them. The expertise of brokers is a market trend” said one local realtor this year. This makes it all the more surprising that the rental market is so tiny. One real estate company reported that they receive 40,000 requests a month for rental properties in Rio – one hundred times the amount of real estate offered by the company.

As property prices continue to increase and new homes hit the market, the population of 6.3 million will need to find alternatives to buying and the rental market will continue to keep pace with the rising value of property in the city.

 

Key Area: Recreio

This neighbourhood located to the west of Rio can be translated as “recreation” and this is what this area has been all about for the past two decades. It has the cleanest beaches and the best quality of life in the city – which is why it continues to be one of the most sought-after areas.

Recreio is largely populated by the middle and upper middle classes of Rio and as a result the area is more expensive, with the average price per square metre currently US$5,600.

Infrastructure improvements have made the area even more desirable in recent years and there are a number of large shopping centres, supermarkets, colleges, universities, bars and restaurants as well as offices.

 

Key Area: Jacarepagua

As with Recreio, this area is largely populated by the middle and upper middle classes of Rio and also contains a number of schools and colleges. It also has some spectacular beaches and is a favourite with those who seek green spaces and a quiet residential atmosphere. The beaches here are ideal for surfing and attract a significant number of holidaymakers from Brazil and visitors from abroad.

 

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