Bright Business Consulting LLP

Monday, May 21, 2018

Real Estate Properties in Brazil

Let’s start thinking of all we have always imagine about Brazil; wonderful coastline, life on the beach, impressive Carnival, crystal blue sea, friendly people: this is nothing else but reality. Brazil is characterized by a diversified economy in fast growth that, beyond being the ninth biggest power in the world – and Goldman Sachs expects it to become among the fifth biggest one by 2030, is also part of the BRIC group of the emerging countries.

Brazil is an incredibly beautiful Country, an agricultural mega power, rich in resources, and it enjoys a climate and a lifestyle unrivalled in the world. Politically, Brazil is a stable democracy that fosters foreign investments, with a high degree of esteem of International investment credit, a firm law system, a tourism industry not yet developed and in quick evolution.

The property market in the Country is characterized by a firm situation with growth high strength: the profits are really high. In some areas of Brazil the profits reach about 40% of the property price (on average 25%).

The exchange rates are favourable on the economic aspect because they foster advantageous investment and also the decrease of the inflation rates actively encourage the foreign investors to make here their investments.

In order to understand the logic and the reasons for investing in Brazil, it is of great importance to breathe the right atmosphere, the position, the politics, the economy and the favourable conditions for the foreign investors. If you step back and compare it to Brazil’s recent economic performances, it is clear that not only Brazil is going forward a further economic welfare but it also regards the property market.

It is necessary to point out that the foreign investor acquires the same rights of Brazilian citizens that benefit from remarkable tax concessions.

The possibilities of property investments are anyway many-sided:

  • Civil low-cost property investments: often project financed by the Federal Government with the aim of giving opportunities to first-time buyers belonging to middle-law classes of the population. They aren’t meant at all for foreign investors.
  • Residential property investments: aimed at middle classes that last year represented more than 50% population (199 million). It is concentrated in the large urban areas.
  • Residential and tourist property investment: for the National demand (middle-upper classes) and international as second or third homes. Preferred areas: North-East of Brazil where the climate is mild throughout all the 12 months.
  • Commercial and productive property investment: it regards many states of Brazil, that record a strong economic growth.

In the last years prices have well re-valued, sometimes doubled, and a large rate of increase in still expected in the next years. Another important element, we might say "essential" is for a foreign investor being aware of the stability that Brazilian laws offer him, as the purchase takes place with lawfully well-written contracts.

For some years Brazil has become for many a dream.

For many people it has always been like this, but for other people, also due to the economic crisis, Brazil has become an ideal destination. Brazil offers surely a lot of job opportunities, the unemployment rate is very low, the consumptions are sustainable and the Government and the Municipalities are investing a lot on great works (stadiums, airports, harbours, transport, accommodation); as a consequence of such a phenomenon the demand for housing increases, both to let or to sell.

Beyond the great lack of infrastructures, they are trying to cope with, they have also scarcity of skilled labour force in many fields. Brazil is investing a lot on the technical education of youth in order to meet the demands of the market, but the process is long and the effects will be evident just on the middle or long run. They also need skilled staff: Europeans are important in Brazil for their competences, skills and their earnestness. Wages for professional men with a high degree of qualification are really high, while less skilled tasks are not highly regarded.

Bright Business Consulting LLP, thanks to firm contact within the Country is able to provide the selected solutions suitable to every kind of investment.

Considered that the "players" in the property market are not always trustworthy and in less popular regions there may be frauds as concerns the cadastral registration of the properties, Bright Business Consulting LLP is able to warrant its customers:

  • The origin of the property.
  • The full assistance in every step of the technical, legal and bureaucratic transaction.
  • The high potential of revaluation of the investment.

The collaboration of our company with the most important building and property agencies present on the Brazilian market allows us to:

  • To submit properties suitable to every needs.
  • To purchase and then to sell again in short time.
  • To invest in order to make a profit on rent sums.

WHAT YOU CAN INVEST ON

According to the needs, the customer can take into consideration:

  • Very short time limits (1-6 months) flats/offices whose building has just been authorized by the local authorities and works are still to begin.
  • Short time limits (1-3 years) flats or houses, better if under construction and in luxury locations.
  • Medium time limits (3-5 years) sites in areas of great building expansion better if with a sea view, commercial properties (pousadas, shops).
  • Long time limits (5-10 years) sites in places surrounding the areas of current building expansion.

In conclusion you need to know that the revaluation in the property market in Europe and in the USA has by now reached the top of the expansion process in the latest years with very high quotations. In Brazil, on the other hand, the property market is at the beginning of the expansion cycle, the quotations are low and future predictions are of great amount.

The low costs of transaction allow to give the greatest amount of the invested capital to the real value of the property. Thanks to the opening to foreign investments (to carry out following specific procedures), in Brazil the purchase of a property is easier. Therefore it in not necessary a residence certificate or opening a current account in the same place. A Brazilian fiscal paper is enough.(CPF).

Considered all the peculiarities regarding the purchase of a property it is possible that the buyer doesn’t know anything about the charges to pay, of the law limitations (regarding properties in maritime , rural or National security area) and about the problems loaded on the property he intends to purchase. So it is extremely necessary an accurate investigation on the situation of the property and of the seller. Hence the importance of having the support of professional staff.

Given that Bright Business Consulting LLP does not work in the field of "Real Estate Properties" in the first person, but it is rather involved in this sector through consolidated and calcified synergies in the "PEE Project", useful to the accompaniment of the companies interested in this market. However, in this scenario the analysis through a " Consulting for Company Investigations & Commercial Information" is a right suggestion, especially for those businesses that want to operate in the field of "Real Estate Properties in Brazil".

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LONDON - UK - W8 4DB 

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