Brazilian Real Estate – The Property Investors Dream?
A guide for British Investors looking to acquire property in Brazil
Why buy property in Brazil?
Over the past 12 months, Brazil has really established itself on the international property investment radar, with the nation meeting all the right qualities that tend to attract property investors. Offering a diverse landscape, tranquil settings, a well-renowned culture, a beautiful climate and of course affordable housing, it's no wonder that British buyers have flocked to the South American country in their droves. However, the reason behind their extended stay is down to property prices.
Much of the original interest in Brazilian property was generated by the investment market, but buyers are now also purchasing property with a view to using them as holiday homes and even as a potential retirement investment. This comes as a result of improving flight connections from the UK to Brazil; however, the flight does take 11 hours so it's certainly not a place to invest in should you be after a weekend retreat.
Property Hotspots
The carnival destination, Rio de Janeiro, is a proven Brazilian property hotspot, boasting approximately 45 miles of white beaches, including the famous Copacabana. Sao Paolo is the government and financial epicentre of the country and provides good potential investment in commercial property as opposed to residential property.
Yet, in recent months, northern beach resorts appear to have become the investor's property hotspot of choice. With a number of quality housing development projects taking place and with government investment also playing an integral role, capital growth is on the increase. Furthermore, many of these developments are also favoured because of the backdrop which they are set against, with locations offering breath-taking scenery that will attract buyers.
For many investors, purchasing in such prime locations is not actually about the money, as many of these resorts benefit from the cleanest air on the South American continent. One city in particular that is currently catching the eye of investors is Natal, which boasts a high quality of life and the lowest crime rate in Brazil.
Better still is the Bahia resort, which has seen substantial UK interest due to a fantastic blend of well-preserved beaches and homes that represent excellent value for money, a cocktail that many investors find hugely appealing and will ultimately reap huge rewards from a financial perspective over the long haul.
The property buying procedure
Purchasing property in Brazil is fairly straightforward once you have acquired what's known as a CPF (Cadastro de Pessoa Fsica) number. However, it's still strongly recommended that you obtain guidance from an expert independent lawyer, before embarking on purchasing property in Brazil. This is particularly important if you're looking to purchase a resale home, as checking for €clean title' can be a drawn-out, complicated process.
Once many of the initial formalities have taken place, you will need to open a local bank account in order to provide evidence that the necessary purchase funds are in place and can be traced between a buyer's bank account and a vendor's account. Furthermore, all financial transactions must be lodged as a foreign investment with the bank of Brazil, with the cost of this covered in any legal fees.
Investors will be expected to submit a deposit of 10% once an offer has been accepted €" although you can opt to pay between 5% - 20% depending on your own personal circumstances. However, the balance must be paid on completion and the entire procedure is monitored by a notary.
On a final note, although contracts are drawn up in both English and Portuguese, it is advised to seek the help of a translator, should your solicitor not be fluent in both languages.
Legal Information
Brazil is potentially one of the limited numbers of emerging markets that permits foreign investors to acquire both land and property in their own names on a 100% freehold basis. This makes the buying process much simpler when compared with other nations. Yet, before being able to purchase a property in Brazil, a CPF number needs to be obtained and this can be done through the Brazilian embassy in the UK (incurring a small cost of approximately 10). Once you have acquired a CPF number, this acts as your tax registration and allows you to open a bank account in Brazil and apply for utilities. Predominantly however, it serves to provide evidence as to the amount of capital you will bring to Brazil. It also permits you to reclaim funds should an investor decide to sell-up.
If an investor is looking to purchase a property built after 1973, it will come complete with a legal document known as a Matricula. This is the equivalent to title deeds in the UK and gives a detailed property overview, a record of all previous owners, boundary details, a record of outstanding debts associated with the property/land and any further legal, financial and judicial transactions attributed to the property.
Why buy property in Brazil?
Over the past 12 months, Brazil has really established itself on the international property investment radar, with the nation meeting all the right qualities that tend to attract property investors. Offering a diverse landscape, tranquil settings, a well-renowned culture, a beautiful climate and of course affordable housing, it's no wonder that British buyers have flocked to the South American country in their droves. However, the reason behind their extended stay is down to property prices.
Much of the original interest in Brazilian property was generated by the investment market, but buyers are now also purchasing property with a view to using them as holiday homes and even as a potential retirement investment. This comes as a result of improving flight connections from the UK to Brazil; however, the flight does take 11 hours so it's certainly not a place to invest in should you be after a weekend retreat.
Property Hotspots
The carnival destination, Rio de Janeiro, is a proven Brazilian property hotspot, boasting approximately 45 miles of white beaches, including the famous Copacabana. Sao Paolo is the government and financial epicentre of the country and provides good potential investment in commercial property as opposed to residential property.
Yet, in recent months, northern beach resorts appear to have become the investor's property hotspot of choice. With a number of quality housing development projects taking place and with government investment also playing an integral role, capital growth is on the increase. Furthermore, many of these developments are also favoured because of the backdrop which they are set against, with locations offering breath-taking scenery that will attract buyers.
For many investors, purchasing in such prime locations is not actually about the money, as many of these resorts benefit from the cleanest air on the South American continent. One city in particular that is currently catching the eye of investors is Natal, which boasts a high quality of life and the lowest crime rate in Brazil.
Better still is the Bahia resort, which has seen substantial UK interest due to a fantastic blend of well-preserved beaches and homes that represent excellent value for money, a cocktail that many investors find hugely appealing and will ultimately reap huge rewards from a financial perspective over the long haul.
The property buying procedure
Purchasing property in Brazil is fairly straightforward once you have acquired what's known as a CPF (Cadastro de Pessoa Fsica) number. However, it's still strongly recommended that you obtain guidance from an expert independent lawyer, before embarking on purchasing property in Brazil. This is particularly important if you're looking to purchase a resale home, as checking for €clean title' can be a drawn-out, complicated process.
Once many of the initial formalities have taken place, you will need to open a local bank account in order to provide evidence that the necessary purchase funds are in place and can be traced between a buyer's bank account and a vendor's account. Furthermore, all financial transactions must be lodged as a foreign investment with the bank of Brazil, with the cost of this covered in any legal fees.
Investors will be expected to submit a deposit of 10% once an offer has been accepted €" although you can opt to pay between 5% - 20% depending on your own personal circumstances. However, the balance must be paid on completion and the entire procedure is monitored by a notary.
On a final note, although contracts are drawn up in both English and Portuguese, it is advised to seek the help of a translator, should your solicitor not be fluent in both languages.
Legal Information
Brazil is potentially one of the limited numbers of emerging markets that permits foreign investors to acquire both land and property in their own names on a 100% freehold basis. This makes the buying process much simpler when compared with other nations. Yet, before being able to purchase a property in Brazil, a CPF number needs to be obtained and this can be done through the Brazilian embassy in the UK (incurring a small cost of approximately 10). Once you have acquired a CPF number, this acts as your tax registration and allows you to open a bank account in Brazil and apply for utilities. Predominantly however, it serves to provide evidence as to the amount of capital you will bring to Brazil. It also permits you to reclaim funds should an investor decide to sell-up.
If an investor is looking to purchase a property built after 1973, it will come complete with a legal document known as a Matricula. This is the equivalent to title deeds in the UK and gives a detailed property overview, a record of all previous owners, boundary details, a record of outstanding debts associated with the property/land and any further legal, financial and judicial transactions attributed to the property.
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