Brazil: is it really the promised land?

The North-East region of Brazil continues to capture the imagination of international property investors.



It is no surprise this is happening as returns on land are generally equal to - or higher than - returns on bricks and mortar and come with a much lower entry level price.

Indeed, land prices in Natal are forecast to go up by 15%-25% per annum based on current market trends.

There is plenty of cheap land available in Brazil, some in the middle of nowhere that is being marketed as a good investment. 

Several of these plots are classed as rustic land (not buildable at present) and consequently do not have utilities (power and water) and infrastructure (roads). 

Purchases in such land should be considered as high risk and purely speculative on the basis that one day they might get urbanised and the promoter might actually implement the infrastructure required. 

The actual cost of such land is very inexpensive, which is why the land is marketed cheaply by European standards, even with the very healthy margins build into the sales price.

The location of plots and property is critical to maximising the investment potential.  All regions and locations in North East Brazil are clearly not the same and nor is their investment potential. 

Just because something is cheap doesn't mean it is a good investment or good value for money.  It can a big risk to buy cheap land site unseen based on price alone, as the likelihood is it will always remain just that - cheap land.

And smart investors know that you get what you pay for and that a good location is critical to an investment's potential. 

Muriu Beach Plots

Muriu Beach Plots - http://www.muriu-beach.com/ - enjoy an envious location adjacent to millionaire's row and are directly in the growth area and are priced under the market value. 

Muriu Beach Plots form part of an extensive planned growth of residential tourism in Natal and Rio Grande do Norte. 

The land owner has already sub divided all the plots, so each already has its own clean title deed.

Infrastructure services such as power and water have already been installed and the roads will be complete within the next three-six months.

Key to any successful investment is being able to identify an exit strategy - the ability to realise the investment by selling it on some time in the future. 

It is still early days in Natal in terms of the market growth and securing quality land now at prices under the market value will put you in the best position to make significant gains when the second wave of investors enter the market and then those buying for personal use. 

 Natal ‘making a name for itself'

Anthony Fernandes of SPC Overseas, a company that specializes in investments in Natal, commented: "It is best to invest in a quality location, to minimise risks and maximise your potential return on investment. 

It is also important to ensure that full due diligence has been successfully completed by independent lawyers on land before you buy".

He concluded: "Brazil is enjoying solid economic growth and Natal is making a name for itself as an international and national holiday destination. 

"Buying land at this point in time is sure to prove a good investment in years to come."

For further information and all enquiries:

Email: info@spc-overseas.com

Tel: 0844 5982929 (UK)
Tel: +34 902945780 (international)