Sunday 26 August 2012

Land Investing Advice

Land Investing Advice

Brazil has grown in popularity amongst investors at an incredible pace over the past 5 years, inevitably leading to huge price increases on what was previously ‘dime a dozen’ real estate. As the appeal of the region continues, increasing numbers of investors are searching for different ways of making huge capital growth at rock bottom prices.

Land investing in Brazil offers speculators an opportunity to enter the market and build on existing portfolios, at the lowest entry level prices with a greater selection of exit strategies. Land Investing Brazil has compiled a list of the most frequently asked questions from clients keen to enter the Brazilian market and make the most from their investment.

Why is it so cheap? The northeast of Brazil offers everything a person could want for a dream lifestyle, yet the local population have until recently been unable to develop the local resources. The lack of capital, high interest rates, low wages and lack of foreign investment have resulted in prime unspoilt land in a stunning destination. Government incentives to promote tourism for the development of this region has opened the doors to foreign investors, bringing in capital and benefitting from huge growth at the lowest prices.

What constitutes good land for investment? Prime land for investment in the northeast of Brazil is that which comprises of features in demand. Stunning visual surrounds offering the ‘wow factor’ is something that buyers will always want. Close proximity to established towns with good road connections will drive prices up faster. The areas that are being developed offer excellent connections with good infrastructure and within easy reach of international airports. It is advisable to avoid agricultural land, even though the prices are cheaper, as limited exit strategies will apply. The connection of utility services to the land, or the possibility to have them connected in the near future will enable even greater returns in a shorter period of time.

What are the exit strategies? Land offers a greater variety of exit strategies to a typical apartment or villa purchase, with little or no maintenance costs. Many land investors in Brazil opt for Land Banking, holding onto prime plots for a period of time while the demand grows, the infrastructure develops and the value increases dramatically. If a land is purchased prior to obtaining permission for construction, the price is often much lower and will offer substantial gains once the permission is obtained. Land purchased with permission to construct can present the buyer with the option to build, selling the finished product at prices that are often double the seller’s outlay. Developers are snapping up large plots for hotels and multiple units, knowing the demand from European and North American buyers is growing at an incredible pace.

What are the restrictions on foreign ownership? Throughout Brazil, for the purchase of land, apartments, villas and other real estate, there are no restrictions on foreign ownership. The Brazilian government are actively promoting development to foreign nationals, fully understanding the growth of the economy is greatly assisted by foreign investment.

What types of properties can be built? Some land purchases will have set parameters relating to the planning consent. Pre-purchasing research should include a full understanding of what the buyer intends to do with their Brazilian land plot, to ensure the type of land being purchased fits the buyer’s requirements. Restrictions on plots should be explained during the search process to ensure correct advice for finding the ideal plot of land. The types of properties to be built can include a villas blocks of apartments, hotels; the choices are only restricted by the buyers intended cash outlay.

How can I buy it? Buying land in Brazil is a simple, straight forward procedure offering fantastic opportunities to all investors. Contact Land Investing Brazil to discuss personal preferences, requirements and availability for a fantastic addition to you investment portfolio.

www.globalpropertyguide.com  provides extensive experience dealing with and on behalf of investors throughout the world, offering unbiased information on portfolios and international markets. Our experience within the global property sector enables us a prime position for identifying professional agents and developers, ensuring our clients receive full knowledge prior to entering any property investment purchase with our collaborators.

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