Nigel,
My 2 cents:
1. Property in Brazil is bought or sold in Reals, and all the price rises that have happened have been a rise in the Real price. The 35% you quote here is just a bonus on top of the Real price increase an investor would get when converting back to pounds if they invested 2 years ago.
2. The currency was really bad as the economy was crud (inflation of up to 43%) and to top it off Lula threatened to default on Brazil's IMF loans. Then Lula got inflation under control and paid off some major loans to the IMF so the currency went up.
Now the economy is stable and growth is good, and unless Lula screws up the economy most analysts don't think you will see any serious declines in the currency. Most long term predictions say the Real will keep going up but not at the same rate as the last couple of years.
Anyway why are you building a development if you think the market is that bad and your customers will make a loss when they buy?
Regards,
Rob.
Quote:
Originally Posted by nigelallen
I have not seen it discussed much on this board but i think it is an important thing to think about when buying abroad,
It was only just over a couple of years ago i was getting over 5 reals to a UK pound, today it is 3.69 to a pound,
2 years back a house costing $R200,000 Would cost £40k that same house today would cost £54k an increase of 35% in 2 years,
Some on here would like us to think that the increase in prices in brazil is down to the mad rush of people buying property, when in fact the real rise in real estate is down to the exchange rate.
worth discussing surely? just remember in 6 months the Real could be back to over 5 to the pound and anything bought today would be worth 35% less. ouch.
Cheers
Nigel
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