Three interesting Brazilian real estate news

Brazilian government creates unified record for buying and selling property

The Ministry of Finance explained that the Provisional Measure 656, published on Wednesday, October 8, in the Diário Oficial, created the concentration of the acts of enrollment for homeowners.
According to the Executive Secretary of the Brazilian Ministry of Finance, all property buying and selling information will have a single registration, similar to the National Registry of Motor Vehicles known as Renavam. With the measure, the Brazilian government hopes to increase the legal certainty for business, less red tape for buying and selling and to facilitate the provision of credit in the country.

Guaranteed Real Estate Letter
The MP 656 also created the Real Estate Letter Guarantee (LIG), an instrument that is issued by a financial institution in the form of a title deed. The LIG is a (título de crédito nominativo, transferível e de livre negociação), a title of verbal credit, transferable and of free negotiation.
It will be linked to the guarantees, which may contain mortgage loans and securities issued by the National Treasury, derivatives and other asset portfolio.
The Ministry of Finance explained that the instrument benefits the investor who does not want to risk the bankruptcy of the banking issuing institution, since the assets are separated from the assets of the institution, and there is still exemption from income tax on income for individuals resident in Brazil and foreign individuals and corporations.

The measure has been discussed in Brazil since around 2007, but even though it has been approved, it still does not have a defined starting date.

Property prices show real decrease in São Paulo and Rio de Janeiro

An interesting factor for those looking to invest in property in Brazil: the average price per square meter of real estate in Rio de Janeiro and São Paulo had real drop in September.
The two cities had a high of 0.40% in the month, lower than the expected inflation for the period of 0.43%. The information is part of FipeZap Index, which tracks the behavior of the housing market in 20 Brazilian cities.
When the change in value is lower than the general high prices, measured by inflation rates, it is said that there was a real decline. Although the absolute price did not fall, the real drop means that there was a loss of purchasing power.
Even with the real fall, Rio and São Paulo are still the most expensive real estate cities among municipalities accompanied by FipeZap. In September, the average price per square meter in Rio de Janeiro was 10,793 R$ and 8277 R$ in São Paulo.

Tecnisa’s accepts bitcoins for payment of real estate

Who wants to buy property from the builders Tecnisa will be able to pay the down payment in bitcoins. The limited-time promotion, will accept an equivalent of 5% of the amount of the property paid with this cryptographic currency.
The construction company has partnered with the broker Bitinvest to receive bitcoins. Initially, the virtual currency will be accepted only on payment of the first installment of the apartments, and the maximum value will be 100 thousand reais.
Although there are physical coins and banknotes in bitcoin, this coin is basically a code generated by a mathematical algorithm. It is stored in a virtual wallet in the cloud, protected by encryption.
The bitcoin is not regulated by any central bank or similar institution but their use is expanding.
The Construtora Tecnisa, based in São Paulo has a history of adopting emerging technologies as part of their marketing strategy and sales. They began selling real estate on the internet in 2001 then sold apartments over Twitter and through its mobile app.

Source: Revista Exame.

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Max Francisco
Max Francisco has been involved with the Internet in Brazil and has been doing digital projects in the country for the last 15 years.

Published by Max Francisco

Max Francisco has been involved with the Internet in Brazil and has been doing digital projects in the country for the last 15 years.