Brazil specialist agent SPC Overseas (www.spc-overseas.com) has won the coveted AIPP award for Best Small Agent 2011 by warning potential clients not to buy property in the South American country.

Anthony Fernandes, director of SPC Overseas says: “Brazil Buyers Beware! There are a huge number of projects springing up in Brazil and many simply don’t make the investment grade”.

“For every 15 developments that we are asked to promote by developers, just one makes it into our property portfolio. Before we promote any development, it has to go through our thorough due diligence process to ensure that it will meet and satisfy the objectives of our clients and that our clients’ best interests are protected.”

“Buying property in Brazil and investing in Brazil is not right for everyone. We try to assist clients to work this out for themselves early on in the process. If a bank guarantee or a mortgage is important to them then they won’t want to invest in Brazil. Similarly, potential buyers mustn’t be wooed by pie in the sky plans, visions and exaggerated projected growth. It’s all very much in the detail. “

The AIPP (Association for International Property Professionals) Award for Best Agent 2011 recognises outstanding customer service at all stages of the buying process: before, during and after sales. AIPP felt that SPC Overseas stood out from the crowd due to the care it takes to guide potential investors through what can be perceived as a high risk market that it knows extremely well.
The AIPP judges said: “The winner demonstrated a thorough understanding of the entire buying process. They have a clear process in place to help their buyers negotiate an emerging market, and they really stress the need for external and independent advisors”.

Anthony Fernandes continues: “We deal with serious investors looking to make real returns. If we feel we are not right for each other, we will say so. We will always try to point clients in the direction of someone who is better placed to assist them. We are also acutely aware that clients might be able to buy the same product through other agents, but we are told that our local market knowledge, attention to detail and customer service set us apart.”

This straightforward approach cutting out ‘the fluff’ has earned SPC Overseas an unrivalled reputation. Andy Rhead living in The Netherlands is just one of scores of people who liked SPC Overseas’ style. He says: “I found SPC Overseas to be honest and professional and his free 30 minute introductory call was particularly useful. I wasn’t looking to invest a great deal of money as I didn’t have a large amount so Anthony tailored the call to my financial position. I didn’t find him to be a ‘pushy salesman’ just gave me the facts and let me make my own mind up, but whenever I needed to ask for his advice, he was always happy to help. I found his personal touch reassuring and I liked the fact he had met the developers on the Brazil side.”

www.spc-overseas.com – smart property consulting

For further information please contact:
Martine James, SPC Overseas on +34 952 781 000 or 0844 598 2929 (UK local rate) martine@spc-overseas.com

Brazil property investments have been getting more than their fair share of positive press over the past, well it seems like ages now!  

Seldom is a bad word written about property in Brazil, unless it is followed up with words of potential and encouragement on facing the challenges ahead.

It is expected that the economy will be recorded to have grown by some 7.5% in 2010, impressive stuff when much of the western world is struggling with huge budget deficits and struggling economies.  

Brazil of course has it own challenges: education, infrastructure, corruption, crime, strong currency just to name a few –“here comes the but!”, but these are challenges that are envied worldwide, as the sleeping giant seems to have finally awoken. With the foundations of the package of economic policy reforms in the “Real Plan” put in place by twice President Cardoso (1995 -2002) and largely continued by the popular Lula da Silva, President Dilma Rouseff couldn’t have taken control at a better time. Some politicians comment that the train is moving too fast now, for anyone to derail regardless of their political slant.

With a housing deficit of some eight million properties, Brazil’s housing market is expected to continue to grow until at least 2025, when based on current market trends supply of Brazil property will finally catch up with demand. (Source FGV) The government’s popular Minha Casa Minha Vida initiative implemented under Lula regime, well financed and underwritten by State Bank Caixa Economica is planned to make a dent in the deficit by three million homes by 2014. C-Class housing projects for the booming middle class are being developed across the country to and are closely being eyed by investors.

Unlike high profile property markets that have been fuelled by speculators, the demand in Brazil is almost entirely local. That has to be a positive thing for investors as there is clear local demand across the country and that means an exit strategy – key for any successful property investment.

Brazil’s Central Bank increased interest rate by 50 base points for the second time this year, in a bid to curb inflation. With the Selic rate now at 11.75%, Brazil has the highest interest rates of the world’s largest economies, something that President Rouseff said she wants to tackle.

However, with rising inflation (2% over the Central Bank’s 4.5% target) due to rising consumer credit and investment, the measure has been taken to steady the economic growth.

Rising foreign investment has strengthened the Reais – Brazil’s currency. In an effort to slow down the economy, President Rouseff anounced a decrease in government budget of 50 Bn Reais, but in real terms government spending will still grow.

The Brazilian economy is estimated to have grown 7.5% in 2010.

SPC comment:
Increasing interest rates usually have a negitive impact on house sales, or at least that is the way it is in Europe.  However, with a shortage of property in Brazil, specifically first homes and easy access to finance for locals which is still viewed as affordable, this is likely to have little impact on residential sales. The local residential housing sector in Brazil is booming and this is the focus for many investors interested in Brazil property.

Source: FT.com

Brazil Property investors look to capitalise on the local housing shortage in Natal in North-East of Brazil

Despite all the obvious allure of the tropical beach resorts, it is Brazil’s less glamorous local first residence market that is currently catching the eyes of the savvy investors examining property in Brazil. » Read more

In 2007, for the first time in 25 years mortgages became available to residents buying property in Brazil. Before then, Brazil’s poor and lower middle class had little access to credit and the astronomical interest rates made repayments almost impossible.

Along with the shortage of homes across the country, access to mortgage finance has fuelled consumer demand and has created the construction boom.  Massive growth in this sector means that domestic mortgages are predicted to increase by up to 600% by 2014. Banco do Brazil recently announced that it will double their loan book in 2011 from 3 billion Reais to 6 billion Reais!

The prospect of buying a small home is now a reality for millions of Brazilians, but mortgages are only available to Brazilian residents on ‘key ready’ property.  

As an investor, this means there is an opportunity to invest in well located off plan property in Brazil that has a well defined target market and exit strategy, by selling to middle class local residents on completion, who can get access to finance. » Read more

Banco Brasil will double the credit line offered to clients buying property in Brazil, according to the bank’s chairman, Aldemir Bendine on Tuesday 25th January. The amount will rise from $Br 3 billion to $Br 6 billion! » Read more

As Dilma Rouseff took over power of Latin America’s economic powerhouse from her potitical mentor Luiz Inácio Lula da Silva, she announced in her inaugural speach, “To ensure the continuation of the current economic growth cycle we need to ensure stability, especially price stability”.

She continued, “Many things have improved in Brazil, but this is just the beginning of a new era,”

She also expressed the need to simplify the countries tax system and invest in modernising infrastructure ahead of the upcoming 2014 FIFA World Cup and 2116 Olymics.

With rising price inflation and continued strengthening of the currency, Brazil has it’s own challenges, but these are of course very different from those in the US and in UK for example at the present time. Brazil’s economy is anticipated to have grown by 7-8% in 2010.

The daughter of a Bulgarian immigrant, Rouseff was jailed for 3 years for her part in the resistance to Brazil’s 1964-85 dictatorship run by army chief of staff, Marshal Humberto Castelo Branco and tortured by her military captors. Several of her former cellmates were present at her inauguration.

Source: ft.com

SPC Comment:
With outgoing President Lula da Silva having enjoyed all time high popularity ratings for a President, Rouseff has a difficult act to follow. However, she seems intent to build on the progress and economic policies that Lula has made, which themselves were based on the solid foundations put in place by his predicessor Fernando Henrique Cardoso. This ongoing stability is viewed as good news for international investors looking into property in Brazil and land in Brazil.

The investments into infrastructure which are planned for the world cup 2014 have been announced in more detail in the “Tribuna do Norte” newspaper.

Back in September the Secretary of Infrastructure of the State of Rio Grande do Norte and the Secretary of Urban Mobility of Natal had requested funds from the federal government for the construction of new and improved roads and bus routes connecting the new airport of Sao Gonçalo de Amarante, the airport of Augusto Severo, the hotels of Ponta Negra and the Via Costeira to the area where the new stadium is to be built in preparation for the 2014 FIFA world cup. Yesterday this was unofficially confirmed to be approved.
» Read more