Coming on the back of 20 years of unprecedented political stability in the country, Brazil is investing US$86 billion towards infrastructure in the lead-up to the World Cup.
As such, Brazilian property looms as a fantastic commodity, with 20% capital gain per annum not uncommon across regional hotspots.
Compare this to stagnating or even regressing property values – and prohibitive buy-in prices – in the USA, UK, Australia and other traditional investment sectors. Compared to most English-speaking countries where rent pays off your home over a 30-year-plus period, in Uruguay the rent meets your outlay at 14 years.
Global Property Guide lists Brazil as a four-star investment location, with neighbouring (and often overlooked) Uruguay rated a full five stars.
Consider these factors:
- Brazil and Uruguay have over 8000km of combined tropical coastline.
- Brazil is only marginally larger than Australia, yet boasts almost 10 times as many people.
- The number of cities in Brazil with more than one million inhabitants is 17. Sao Paulo vies for the title as the world’s largest city. Over 84% of Brazilians live in a city.
- The average purchase price in Brazil is $3836 per sqm. In Uruguay the cost is lower – $1959 per sqm. Compare these with the average for the same quantity in the UK ($25,087), France ($14,696), USA ($13,377), Australia ($8774), Canada ($8288), Spain ($6151) and China ($6932). *All prices $USD
- Rental yields (amount of rent received as a percent of capital outlay on property) in Brazil and Uruguay is also superior to major westernised countries.Compared to most English-speaking countries where rent pays off your home over a 30-year-plus period, in Uruguay the rent meets your outlay at 14 years. In Brazil the average is 20 years.
- From Jan 2008-Jul 2012 house prices in Rio de Janeiro rose 118%. In Sao Paulo the figure was 92%.
- Uruguay is famed as the most stable of South American nations, has a progressive government and is a tourism gem that, although largely unknown in the English-speaking world, attracts hordes of visitors from the Mediterranean nations.
- Direct flights from Europe to northern Brazilian cities Recife, Fortaleza and Natal are exponentially increasing their tourist appeal.
- Aside from hosting global sporting events, Brazil is a founding member of the United Nations, the G20 and is among a select band of countries recognised as ‘Megadiverse’ by Conservation International.
- Brazil and Uruguay boast pro-landlord realty legislation and offer favourable residency requirements to foreign investors.