World Property Values Dropping..why will Brazil increase?

[beenthere]

Originally Posted by JMBroad

Wooosh right over my head. What are you talking about 1.1% growth? Did I miss some figures somewhere lol

Nationwide posted their figures today.

[beenthere]

Originally Posted by RalphJ

GW, in my experience here in Brazil, unfortunately for we gringo's, the property we're sold is normally sold for a price well above current market value for that area. Another reason why people need to do their own due diligence and find local people they can trust....it's not easy.

The project I am developing at the moment, 3 beachfront condominiums, are being sold for exactly what their current market values are here in Brazil. Another condominium right down the street which is being built by the ex-governors son, and have sold 95% of their units in the first 4 months of sales, have identical sized lots, building space, etc, and were sold at the very figures we're asking for today. And 97% of the units to this point have been sold to brazilians.

Out of curiousity...where did you buy? Don't tell me Fortaleza/Natal. The onrush of gringo's have pushed prices there through the roof ridiculously.

I should have guessed you were a developer. I suppose you are the local person we can trust?

[Golfingworld]

Speaking of Brazil, if demand is increasing, why are prices dropping? Why, because the advertised prices are not real..the real prices are the ones you pay. So when you are told the next phase is x+10% or whatever it is a fictional value not a real one. Consequently, investors like to think they are making money so are happy to believe the fictional prices, not the real ones...there is evidence of this all over the place in Brazil. I don't think Brazil prices will crash as yes there is demand and it is developing but I don't think the potential gains are anything like what people are hoping for...plus 25% increase on a £50k property is not very much money really. In Europe particularly Uk and Spain/Portugal I think the crash is coming if not here already.

[RalphJ]

Originally Posted by beenthere

I should have guessed you were a developer. I suppose you are the local person we can trust?

No...don't "trust" anyone. Do your due diligence. Come to Brazil, meet our team. See our land titles, architectural plans, approvals, investments and assets. Get your own brazilian lawyer, do research. You'll find that my partners and myself are not crooks...a rare comodity in the brazil foreign investment marketplace.

[davros909]

hello there im just wondering what members on this site think about the current crisis affecting the economy i can see in my job people are cutting back on expenses i felt it back in september and its got muc h worse does anyone think brazilian house prices will be affected for gringos and locals? the thomson flight pull out has made me think twice of buying in the short term plus the weak pound of course thou brazil is so great how do recent purchasers feel i understand not everyone is out to make a quick buck cause we all know brazil is a special place etc any advice will be helpful are most people happy with there off plan? il probably pop back in november hope then some new direct routes will come about have a\ nice day. any info i get il put it up cheers davros

[JMBroad]

From an agents point of view we just had a record month of February - best since the company started four years ago. People seem to be wary of banks, stocks and shares and other investment vehicles. Property seems to be more popular than ever.

[ady1231]

Dear All;

This would be a good opportunity for all of us to discuss the current Real estate situation.

Europe, NA, South East Asia, Japan prices are all dropping, and thats due to the credit crunch. These markets have ALWAYS been mutually connected to eachother by away or another.

I personally think Brazil is a safe heaven in these stormy conditions, investors are grabbing a properties with a good prices, and waiting for em to appreciate, why have they gone to Brazil? Because everyother market in the world is saturated with some few exceptions. Look at Spain, France, Germany, UK , America, Japan, HK, China, Singapore, Montenegro, Ireland, Bulgaria, Estonia, Latvia, Portugal, Greece .. and the list goes on, all of these markets are coming down badly and not to be touched until mid 2009 In My opinion.

So, why do people go to Brazil? well some people will always have a cash to invest, even in a difficult financial period like this, so Brazil is still undervalued, and alot of properties start for under 7K Pounds, so it's not a bad time to invest.

I beleive the credit crunch will benefit Brazil further, where investors have very few options to invest in. Other options in My own choice are: Ras al Khiema, UAE and Malaysia!

[RalphJ]

Originally Posted by ady1231

Dear All;

This would be a good opportunity for all of us to discuss the current Real estate situation.

Europe, NA, South East Asia, Japan prices are all dropping, and thats due to the credit crunch. These markets have ALWAYS been mutually connected to eachother by away or another.

I personally think Brazil is a safe heaven in these stormy conditions, investors are grabbing a properties with a good prices, and waiting for em to appreciate, why have they gone to Brazil? Because everyother market in the world is saturated with some few exceptions. Look at Spain, France, Germany, UK , America, Japan, HK, China, Singapore, Montenegro, Ireland, Bulgaria, Estonia, Latvia, Portugal, Greece .. and the list goes on, all of these markets are coming down badly and not to be touched until mid 2009 In My opinion.

So, why do people go to Brazil? well some people will always have a cash to invest, even in a difficult financial period like this, so Brazil is still undervalued, and alot of properties start for under 7K Pounds, so it's not a bad time to invest.

I beleive the credit crunch will benefit Brazil further, where investors have very few options to invest in. Other options in My own choice are: Ras al Khiema, UAE and Malaysia!

7K GBP? I'm sorry Ady, but I live in Aracaju, which has property prices that arrive nowhere near the likes of Salvador, Natal, Fortaleza, Recife, Rio de Janeiro, Sao Paulo, etc, and for 20,000 reais (that's 7K GBP basically), you can't buy a used Fiat Uno, let alone a decent lot. Now if you're talking about a 500 meter squared lot in the middle of nowhere with no basic infrastructure whatsover......I can sell you thousands of those for 20,000 reais, but that's a different matter alltogether as far as investments, or building a house with running water and electricity are concerned.

[robh]

Originally Posted by JMBroad

From an agents point of view we just had a record month of February - best since the company started four years ago. People seem to be wary of banks, stocks and shares and other investment vehicles. Property seems to be more popular than ever.

In terms of numbers of sales uv10 has also had a record month in February, but March is already better.

[robh]

Originally Posted by davros909

hello there im just wondering what members on this site think about the current crisis affecting the economy i can see in my job people are cutting back on expenses i felt it back in september and its got muc h worse does anyone think brazilian house prices will be affected for gringos and locals? the thomson flight pull out has made me think twice of buying in the short term plus the weak pound of course thou brazil is so great how do recent purchasers feel i understand not everyone is out to make a quick buck cause we all know brazil is a special place etc any advice will be helpful are most people happy with there off plan? il probably pop back in november hope then some new direct routes will come about have a\ nice day. any info i get il put it up cheers davros

This might answer some of your questions regarding the affect of the credit crisis on Brazil:

Mortgage reform key to Brazil property boom : Brazil Property News

Brazil poised to weather credit storm, says finance minister : Brazil Property News

Regarding the thomson pullout, I still only hear the same thing from their head office, mainly that first choice will most likely fly to Natal instead.