Overseas property news - Why invest in real estate in the northeast of brazil state of ceara

Why invest in real estate in the northeast of brazil state of ceara

GENERAL FACTORS

Predictions by leading financiers, Goldman Sachs, are ranking Brazil amongst the top 5 world economies by the year 2050. As one world’s largest countries, with a current population of over 180 million, Brazil’s economic potential is enormous. The current availability of cheap labor and materials, coupled with undervalued real estate, mean the conditions for growth are outstanding

Major investment is ongoing to improve Brazil’s infrastructure and create purpose built tourist facilities. Due to increased efforts by its government, Brazil experienced 48% growth in its tourism industry between 2002 and 2005, with further growth predicted in 2006

Growth is being centered on the coastal destinations of Fortaleza (State of Ceara), Salvador and Natal in particular, which is the closest point of Latin America to Europe and the location of a new airport which shall be the EIGHTH largest in the world. Easy access from North America and Europe is on the increase, with costs of travel reducing each year, giving Brazil a truly global investment and tourism appeal.

With a Tropical stable climate, world-famous, beautiful beaches and a year-round tourist season, Brazil is set to benefit purchasers with buy-to-let investment strategies. The low cost of living (20% of that in the UK) also appeals to investors and tourists looking for a lower cost alternative to the peaking Caribbean market

There are no complications regarding property ownership in Brazil and investments can be purchased as 100% Freehold

We will assume that you already have made up your mind to invest in real estate and to do so in Brazil

CAUSE:

There are three reasons that I think are the most important for this to happen:

1.) Low labor cost and low living expenses.

2.) Government incentives are abundant since the states are looking forward to the economy becoming even stronger through this.

3.) Last but not least the stable climate without earthquakes, hurricanes, tsunami, terrorism or any of the God’s acts that let us know where our place is.

Of course, we cannot forget the friendliness of the locals and lower crime levels than those of the South & Central regions of the country.

EFFECT:

Advantages of Brazil Investment

  • Property capital appreciation of 20% average in the Northeast per annum.
  • Favorable currency exchange rates, making property transactions cheap for foreign investors.
  • President Lula's progressive policies, bringing many improvements to Brazil , including a decrease in inflation to an all-time low at 5.7%.
  • Active encouragement and incentives for foreign investment - you can own 100% of land and property.
  • Cost of living only 20% of that in the UK/Europe and property maintenance costs extremely low.
  • Some of the lowest property prices in the world.
  • Increase of thriving manufacturing industries relocated to Brazil and boosting the economy.
  • Expected self sufficiency in oil reserves within the next year.
  • Some economists believe Brazil is amongst the leaders of the future, along with Russia , India and China .
  • Year-round sunshine, with average summer temperatures of 21°C.
  • Great natural beauty with fantastic scenery and 7,000km of beaches.
  • Friendly nature of the Brazilian people.
  • Vibrant cities with carnivals and music.
  • Low international risk of war, terrorism or SARS in Brazil .
  • Easy access via direct flights from many international airports.
  • Donald Trump invested here very successfully.
  • Billions of U$ Dollars are being poured into the real estate market making it very stable and profitable.
  • Brazilian currency is strong on the Forex markets further lowering risk.

Now, let's discuss why to make investments in the Northeast and more specifically State of Ceara?

 The Northeast region of Brazil is the fastest growing area on the South American continent. This is in regards to economic factors such as export/import, tourism, real estate, natural resources & energy etc….

 We have seen a steady value appreciation of these investments over the last four to five years and especially real estate geared towards tourism and golf.

Numerous developments such as resorts & hotels with beach front condominiums full of villas (in hundreds and sometimes in thousands) including golf courses have been springing up every 100km or so throughout the 2500 km of the Northeast's Coast Line.

State of Ceara , with it's capital City of Fortaleza has been undoubtly attracting the most savvy of the investments in the region. South America's largest water park is located here and the Pinto Martins International Airport is fit to accommodate a large amount of flights and is currently in an expansion stage.

 There are a minimum of four golf course developments under construction at this time and there is THE largest tourism development in this country covering an area of 3100 hectares or 31 Million square meters well on its way. The evaluated grand total of this enormous undertaking is over U$D20 Billion. It's in the construction stage as well. Another pre-approved project has been recently sold to an undisclosed investor in the, not undermining size, of 1020 hectares with licenses for a Marina, 16 resorts, golf course, private airport, convention center & shopping mall, etc…These are just the two largest developments in this state besides many others. Inside the City of Fortaleza buildings are popping up everywhere and the construction trade has received a very significant rise in demand (since 1998 to today 1000% growth). Rentable property is a very interesting factor, however there are a few good managing companies available for to the public.

 This state is very strategically and geographically located in relation to main cities in Europe like Lisbon, Madrid, Paris, Milan, Amsterdam, Brussels, Oslo, London, Copenhagen etc…as well as Miami, New York, Boston,USA.

  The Capital of Fortaleza has the largest population in the Northeast and yet incredible to say the lowest crime rate in the area.

 There are Mountains with waterfalls and European climate 3-6 hours of a drive away, depending of course on which one desires to visit, the world-wide famous beaches like Jericoacoara, Cumbuco, Fleixeiras, Lagoinha, Praia das Fontes etc…..

 There are over 1000 edible fruits here, interesting cuisine, vital to the Brazilian Culture is the nightlife with the various restaurants and Bars which are great investments for the well informed persons with outdoor seating and gardens,

Many clubs and dance events of especially Forro (pronounced Fo-Ho) being a very spicy, local way to entertain, a ratio of women to men is 4-1 and the list goes on…………………………

March 12th 2007
© By: Martin Gajewski Junior
Offshore Investment Consultant&
International Property Broker
55-85-3264-8155
1-708-354-9688
brazilrealestate@yahoo.com

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