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Originally Posted by Golfingworld
Here's a conundrum for you, interested to hear the views. Clearly the US sub prime debacle has triggered a stagnation or drop in world property markets. Perhaps this is more due to the credit squeeze associated with this problem, but either way there now seems to be a correction here or coming. It seems that many of these property markets have been falsely stimulated by cheap loans but now the confidence element is eroding..where are all the new buyers and consequent price increases going to come from? In terms of Brazil there are no loans (not for foreigners anyway) so that may be an advantage but in effect many buying off plan see their staged payments as a form of borrowing. More importantly, why is Brazil going to buck the world trend?
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property values have increased here for a foreign investor over the last two years simply because of the valuation of the currency. As far as brazil increasing while the world decreases....would be difficult for me to justify that one.
The key to investing here, like anywhere, is to get in early and know what's going on in the area. We purchased a large, beachfront property 4 years ago when we first got word of brazil's largest tourism company, CVC, was negotiating to buy a huge tract of land to build a resort a few kilometers from where we had an opportunity to buy. We negotiated a price that was actually 60% of the current market value at that time, and since we bought CVC has gotten their building permissions within the last 90 days and numerous other condominiums have sprung up in the area. Our land since our purchase has appreciated 260%, but with the strengthening of the real it is much more than that! We bought when the pound was 5.3:1...it's now 3.6.