Brazil Enjoying a Growing Number of Potential Housing Buyers
Experts are predicting that real estate investors in Brazil will no longer have to depend upon foreign buyers over the next several years, as the country’s growing middle class will be ready and able to purchase the properties they are trying to sale. This is largely due to the fact that the Brazilian government has implemented innovative programs that are designed to make it easier for lower income families to obtain a mortgage as well as to the fact that the country has been experiencing a significant amount of economic growth. In fact, mortgage interest rates have fallen into the single figures in 2010, resulting in a 77 percent increase in mortgage lending when comparing the first half of 2010 to the first half of 2009.
Due to the significant increase in lending, the construction industry has actually outpaced the country’s GDP. Still, experts do not believe the growth is just the beginning of a bubble of unsustainable growth. This is largely because experts believe the country has learned from the mistakes that have been made by other countries throughout the world.
“Brazil is not the US and neither is Bulgaria, Spain or Dubai. Whilst US banks granted up to 130% loan to value, in Brazil these rates are being curbed to a far more sensible average of 60%. Meanwhile, whilst the booms of Bulgaria, Spain and Dubai were fueled by, and dependent on, foreign speculators and holiday home hunters, the future of Brazil’s property market is assured by its own population,” said Samantha Gore, who is the sales manager for uv10, in a Property Wire article. “Brazil’s Real Estate Developer’s Association states that eight million families, or 30 million people, do not have their own house to live in and are currently renting sub-standard accommodation. This need, along with subsidized mortgages for Brazilians, will generate demand for new homes for at least the next 15 years.”
Experts go on to report that the growing middle class is enjoying greater access to mortgages, which has resulted in an unprecedented amount of house buying in the area. As such, experts believe this demographic provides the best profit potential.
“We work with a 20 year established developer who offers off plan properties well under market value to foreign investors as they pay in full more quickly,” continued Gore. “This enables the developer to seamlessly roll funds into his new project. They will also, with the help of a network of local agents, either organize the resale of your property to the local market or rent it out with or without a rental guarantee. As we’re talking about city center locations, neither the market price nor rental income is speculative but instead reflect thorough market studies.”
Currently, the company is offered units in Edificio Dr Geraldo Furtado in Petropolis, which is in northeast Brazil, at 20% below market value prices with an optional four year 5 percent rental guarantee.
Autore: Brian Kinkade
Pubblicato il 10 ottobre 2010, in Stampa Internazionale - International Press con tag 2009, 2010, banks, Brazil, Bulgaria, buyers, Dubai, housing, morgage, property, Real Estate, Spain, Us. Aggiungi il permalink ai segnalibri. 1 Commento.