Foreign Buyers Are Waiting For Mortgages In Brazil
The property investment market in Brazil is a hot topic and has been predicted for very good capital growth and rental income potential in fact some properties in the northeast have increased in value by one hundred percent in the past 3 years. This is due to the strong economic growth and increased exposure, investment and development of the touristic investment real estate industry.
Brazil also offers superb holiday homes and second homes for people looking for a place in the sun or to enjoy the superb carnival culture.
This is just a few of the many reason why Brazil property is increasing in popularity with foreign buyers and investors.
A growing number of international property developers are now building a range of superb touristic residential resorts in the northeast of the country and especially near Natal the capital city of Rio Grande do Norte.
A lot of foreign property buyers are already buying Brazil investment property already but in our opinion the only thing holding the market back is the fact that mortgages for foreign buyers is non-existent , however because of the potential of the Brazil property market we believe that mortgages will be available soon.
In our opinion the shrewd property investors with the cash available are getting in early and are set to make good returns as soon as the mortgages are available
Brazil has a very young mortgage market. Some mortgages products were introduced and around 50,000 mortgages were granted for Brazilians in 2005, however these had high interest rates. Housing is a major issue for the majority of the Brazilian population and the government and banks know they need to make mortgages available to help economic growth and the quality of living for Brazilian people.
As well as mortgages for Brazilians we predict that the banks will also start to introduce mortgage products for foreign investors as well because of the growth demand and quality Brazil investment property being built and targeted towards the international buyers.
At present (Sep 2008) the only option for foreign nationals looking to buy Brazil properties is to arrange alternative finance like equity release for there property in the UK for example.
We predict that as soon as mortgages become available for foreign investors buying in Brazil the real estate market is bound to become more accessible and attractive and an increasing number of people will be investing meaning the value of property will increase and the investors who have already purchased should see good capital growth.