Devalued Brazilian real: is it time to buy property in Brazil?

Nata Ri Grande do Norte buildings skylineDespite the uncertainties about the direction of the economy and rising interest rates for housing loans, a question reocurs: is it time to buy property in Brazil? For those who are long in RN market, “yes,” there has never been a time so favorable to the client as now. First, the stocks of construction companies, still high; the second offered offerings; third by the deceleration of prices.

Today considered a barometer of the national real estate market, the FipeZap Index shows that in the first seven months of the year, the average value per square meter in the 20 cities surveyed, lost rout for inflation. While real estate increased by 1.51% in the period, inflation measured by the IPCA (IBGE) rose 6.79%.

In the three capitals of the Northeast of Brazil monitored by the survey – Fortaleza, Recife and Salvador – the average increase in real estate was only 2.06%. Over the past 12 months, the ratio was 9.52% inflation against 4.28% increase per square meter.

“To buy the property ready, we call used property, the applicant must have 50% of the capital, because Caixa Economica Federal – and most banks – only fund now 50%. But for those who want to finance a property off-plan it was much better than it was before. The rate of 9% per annum is world first rate in the case of Brazil, it’s fantastic, is still very low,” says Caio Fernandes, director of one of the largest real estate agencies of Rio Grande do Norte.

He cites another advantage, pro-buyer, that exists today and that didn’t exist in the past. “Before, we only had Caixa to finance real estate. The Bank of Brazil financed agricultural credit and other banks were other banks. No one was interested in investing in real estate. Today, even as a law requirement you have Caixa, Banco do Brasil, and the Banco do Brasil is acting in every sphere of real estate financing; Bradesco is very strong, Itaú is strong and Santander is also active in the sector. Banks are willing to lend. We also have the portability of credit, which is another advantage for the customer. ”

Caio Fernandes think the overly negative news about the moment in Brazil end up scaring away buyers. “People lose more time touting a bad point in an ocean of good things.”

Investments
A year ago, nine out of ten market analysts said that the time was not good to invest in property in Brazil. But this orientation began to change after the fact that the buildings are having value below inflation and the real lost value against other currencies. “It may not be the best investment, but for those who pay rent, the timing is favorable,” recognizes a financial planner.

With information from http://tribunadonorte.com.br/noticia/o-momento-a-do-comprador/324819

Price per built square meter at the brazilian capitals

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Joe Cloud
Dutch, American, Brazilian... lived there for 5 years and owns property in Brazil. Out of the country for a few years now and would like to go back, however current circumstances tell me it's not the right time.

Published by Joe Cloud

Dutch, American, Brazilian... lived there for 5 years and owns property in Brazil. Out of the country for a few years now and would like to go back, however current circumstances tell me it's not the right time.