Brazil is the largest populated country in South America with over 190 million people (5th in the world). The economy ranks 8th overall and is expected to be one of the leading economies within the next 10 to 15 years. These details along with the fact that they have a government that is actively encouraging foreign investors, makes this real estate market one of the most appealing in the world.

Brazil is a net exporter, which means it’s average value of exported goods is higher than imported goods. Their currency is the real (rey-ahl), which is worth about 0.57 U.S. dollars. Unlike other South American Counties the national language is Portuguese.

Reasons to Look

Many people say that Brazil is the true melting pot in the world because the many cultures and ethnicity’s that exist are truly integrated. Brazilian women have been very much publicized for their beauty and this integration of European settlers and natives probably has much to do with that. Brazil truly has it all, from the Amazon Rain Forest, to an active nightlife, endless beaches and picturesque views.

The 2016 Summer Olympic Games will be played in Rio, the largest and arguably most beautiful city in Brazil.

The real estate market is in great shape for potential investors. It is truly a buyers market because there are more homes for sale than there are buyers. The demand for property in Brazil is expected to increase by 900,000 units annually. Many people that are just now getting into researching the market are shocked at how cheap beachfront property costs.

The economy is in great shape to grow in the future with oil, airplanes and automobiles among the popular exports. Agriculturally the lead the way in exporting soybeans, orange juice, coffee, beef, chicken and ethanol. According to Jim O’Neil of Goldman Sachs, Brazil will eventually contain 39 percent of the world’s population and will be the 5th largest economy by 2050.

Best of all the future energy crisis is something that Brazil will be able to avoid for awhile due to a discovery of a new oil field discovered 155 miles off the coast of southern Brazil, the biggest oil find since 2000 (Business Week).

With the full production of this oil field Brazil will become one of the main oil exporters and along with biofuels and hydroelectric power generation they will have the energy production to sustain their fast economic growth. Additionally, Brazil has the world’s richest supply of freshwater resources (World Wildlife Fund website).

Market Rates

Interests rates have fallen recently to the 10 percent range and more Brazilians now have access to funds. The lowering of interest rates has increased the demands of homes and the housing market has risen over the past few years as a result. With demand increasing within Brazil itself more and more international investors have become interested in buying, mostly through North Americans but also with a growing number of Europeans as well.

Bigger more populated cities seem to be safe investments in places like Rio de janeiro and Sao Paulo because appreciation is higher and renting is easier. It helps when investing that you have someone there who speaks the language and knows how to buy and invest because some area’s can be problematic and dangerous.

Purchasing Details

Finding a local Lawyer to help with the process is a good idea. You have to apply for a Cadastro de Pessoa Fisica (CPF) number, which is like a Social Security Number in the United States. Before you buys property or open up a bank account in Brazil you need that number. This is where a Brazilian attorney can really help out. You also need special clauses in a contract and other details so it’s best to have a professional look over this.

All transferred funds pass through Banco do Brasil, in order to check where they are going and where they are coming from. Again, before transferring make sure you consult with an attorney first because of the various rules and regulations.

When investing you should allow around 7 percent of the purchase prices for the variety of taxes and fees and this all may depend on the properties location.