Anthony Fernandes founded
SPC - smart property consulting
and is a renowned industry
expert on property in NE Brazil.
He leads a team of property
professionals and is referenced in:
The Move Channel

FREE DOWNLOAD

SPC Overseas is a proud member of the AIPP (Association of Independent Property Professionals), the international property market industry regulatory body.

AIPP is not-for-profit organisation that is improving standards of professionalism in this market. In a largely unregulated industry, AIPP Members voluntarily agree to follow a strict professional Code of Conduct and Dispute Resolution Procedures, which offer protection to our clients.

As a member of AIPP, SPC Overseas is duty-bound to act with honesty, transparency and integrity in all dealings with the public and with its peers. For more information please visit www.aipp.org.uk

Why Invest in Brazil?

20 great reasons to invest in property in Natal and NE Brasil

1) Growing economy

Brazil is one of the four largest developing economies in the world (the three others being China, India and Russia) with an annual GDP growth of approx 6%. According to Goldman Sachs, by 2050 Brazil will be the world's 5th biggest economy.

2) Foreign investment is encouraged

There are no restrictions imposed by the government for foreigners buying land and property in Brazil. This ensures the respect of the terms of contracts and the rights of foreign investors. Property ownership is 100% freehold and secure.

3) Lowering interest rates and inflation is under control

Brazil is becoming an investment magnet country. The steady fiscal reforms and economic stability are pushing the Brazilian interest rates down significantly. Due to historically high interest rates, Brazil's mortgage lending is still very low by compared to that of UK and USA. Total mortgage values in Brazil equate to only to 4% of the Gross National Product.

4) Underpriced Real Estate Market

Due to continuous years of lack of purchase power during the 80's and 90's, the price level for real estate is still extremely attractive. Now that the economy is growing and inflation is low, the 186 million Brazilian population is starting to purchase property with bank financing just like the populations in all western countries. It is expected that property prices in Brazil will increase steadily for the foreseeable future.

5) Shortage of local property

There is a shortage of quality accommodation and first homes all across Brazil. The national deficit is currently estimated to be between 8-10 million properties. As an investor, this means that there is a clear exit strategy for such investment purchases.

6) Local access to finance

Brazilians now have access to controlled mortgage finance. However, with the decreasing interest rates, a mortgage lending boom has recently begun and consequently an increase in value of Brazilian Real Estate will take place across the nation. The Brazilian government expects the Brazilian mortgage market to grow 600% by 2014, with total mortgage values reaching 12% of the Gross National Product.

7) Investment grade status:

Brazil has an AA credit rating by all the main agencies: Moody's Investors Service, Standard & Poor's and Fitch Ratings. Latin America's largest economy has built record foreign reserves and averted a prolonged recession amid the global financial crisis.

8) Long term future market stability and existing demand

Brazil has a population of 186 million that includes more than 1 million multi-millionaires who are naturally attracted by European styled holiday homes situated far away from Brazil's vast mega-cities. Along with future domestic economic growth and increasing spending powers of the Brazilian population, this trend is set to increase.

9) Economic outlook

The days of economic instability are long gone and Brazil is now a safe country to invest in, offering high returns in a huge emerging market with almost 200 million consumers, that will be the 5th economy worldwide according to Goldman Sachs. Because of its strong domestic economy, huge oil reserves and growing GDP and prosperity levels, Brazil is one of very few countries left in the world for safe and profitable investments that are not affected by the international credit crisis.

10) Growing domestic tourist market

When Brazilians plan their holidays they usually head to the northeast due to the incredible climate. Along with economic growth and increased spending power of the Brazilian population, this market will continue to grow and will have a positive impact on coastal property prices over the years to come.

11) Active promotion of international tourism

The Ministry of Tourism's top priority is to increase tourism and the National Tourism Plan is clearly working. Brazil has seen a 75% increase in foreign tourism between 2002 and 2007 as a direct result of the National Tourism Plan (developed in 2003).

12) 175% increase in tourism in Natal between 2000 and 2007

The increase of foreign tourism in the whole of Brazil during this time period was an impressive 75%, but the staggering figure of 175% clearly shows that Natal is the leading area for international tourism.

13) New Natal airport due for completion by end of 2012

Due to the growth in tourism and enormous potential of the local area the local government has committed to build a new airport in Natal which will have the potential to be the biggest airport in South America when it is at capacity (8th biggest in the world). The airport will be specifically designed to be able to cater for the new Airbus A-380, which will further confirm Natal's position as one of Brazil's top tourist destinations.

14) Natal benefits from the best climate in the country

Located only 5 degrees from the Equator, the seasonal variations are minimal with an annual average temperature of 27C and the weather is stable and sunny most of the year. As a result, Natal has established itself as the leading beach tourism destination in Brazil and its coastline is famous for its stunning tropical never ending beaches lined with coconut trees, lagoons and sand dunes.

15) Several operators have routes into Natal

Natal is one of the fastest growing tropical holiday destinations in the world. The area has a wide market appeal and is already attracting tourists from all over the world.

16) Natal is Brazil's closest point to Europe

Normal flight time to Natal is only approx. 6 ½ - 8 hours from most European cities. As a result, tourists from Spain, Portugal, Italy, France, England, Holland, Sweden, Norway, Denmark, Finland, Germany, USA, Japan, Switzerland, Argentina and recently Eastern European countries are all finding their way to this tropical paradise.

17) Brazil is a peaceful country

Although Brazil is one of the world's largest countries is it is not considered a target for terrorism. The nation has also enjoyed decades of democratic government and is considered a very peaceful country without political tensions.

18) Unbelievably friendly people

Studies carried out by Ministry of Tourism indicate that 75% of the tourists who seek Brazil as their vacation destination do so first of all because of the natural beauty. Once in Brazil they soon become enchanted with the mixture of colors, races and cultures of the hospitable people as well. In a recent survey of tourists who visited Brazil, 96% stated that definitely intend to return.

19) The North East benefits from a lack of natural disasters

Compared to many tropical destinations, NE Brazil benefits from a lack of natural phenomena such as hurricanes, tropical storms, flooding, tsunamis, nor is it affected by earthquakes.

20) NE Brazil enjoys a cost of living of about 20% of that in the UK.

Compared to other more traditional destinations (Spain, France, Caribbean etc.), in Natal you can afford a far more relaxed and luxurious lifestyle at a fraction of the price.