Should brazilian property buyers wait until after the world cup?

Photo credit: Vismar Ravagnani

Speaking to Época Negócios, Luís Carlos Ewald - known as "Señor Dinheiro", or "Mr. Money" - said that purchasing real estate or automobiles should be postponed until after the sporting tournament in June.

The Finance Professor of the Getúlio Vargas Foundation said that once the FIFA competition has finished, Brazilian property values will beging to decline, opening up opportunities for those with less capital..

"Everybody is saying that the Cup will be great for Brazil. But, after the event passes there will be no more investors left in the country as many are fearful," he said.

Ewald also said that many of those who had bought off-plan properties were returning them to developers, according to Property Secrets, as they struggled to meet the monthly installments necessary to complete paying the loan off.

"Even if the property value is discounted, constructors will not want to take the units back," he added. "The banks are full of returned properties.” 

“The Brazilian housing crisis is already established – even the construction companies owe money to the banks.  All financial crises start with turbulence in the housing market and there is no point thinking that the situation here will be any different."

In the past 12 months, Brazil has increasingly been one of the most popular real estate markets on TheMoveChannel.com, firmly estabilish its ranking within the five most sought-after countries for international property buyers.