Posted by: davidgarnerconsulting | September 4, 2009

Mortgages in Brazil for Brazil Property and Real Estate

Download your FREE GUIDE TO REAL ESTATE INVESTMENT IN 2009 – Authored by David Garner – Managing Partner of David Garner Consulting – The What, Where, When, How, and Why of investing in property in 2009 – Please give the site a chance to load.

This is, in my opinion, one of the most exciting capital drivers for the potential of growth on the value of Brazillian real estate, land in Brazil and Brazil property in general.

Brazillian mortgages are now available for nationals, and so what? well, when you take into account a few key factors this fact is and always has been a massive capital driver. Very similar in principal to the case for Istanbul, all of a sudden mortages became available and some 500,000 people who could not afford to pay cash for a property were on the market looking for their 1st home pushing the balance of supply and demand in favour of those holding real estate assets and hence prices rose by 20% per annum for three years straight and is one area of the world where residential real estate holdings in general have held firm during the crisis.

Take into account the size of the population of Brazil, some 183 million people and all the factors are multiplied, leading me to firmly believe in Brazillian land and real estate and property in Brazil in general as a sound investment for growth.

Download your FREE GUIDE TO REAL ESTATE INVESTMENT IN 2009 – Authored by David Garner – Managing Partner of David Garner Consulting – The What, Where, When, How, and Why of investing in property in 2009 – Please give the site a chance to load.

I have laid out the factors relating specifically to mortgages that will, and are driving up demand for Brazillian property, and as we know, an increase in demand and limited supply means capital growth and a bouyant market:

  • Introduction of mortgages for nationals – million of people unable to pay cash for theor home can now buy.
  • Government will subsidise a 1st time buyers mortgage by 50%.
  • 6 million Brazillians left poverty last year – these people will continue on to become 1st time buyers andthat figure represents 23% of Brazillians poor.
  • The national minimum wage increased by 50% in 2008 – millions more moving towards the property market

All in all I feel this increase in demand for property will have two distinct effects; small outlying city apartments will be in high demand, as will luxury 2nd homes in beautiful locations for the emerging middle classes.

Happy investing.

DG

Download your FREE GUIDE TO REAL ESTATE INVESTMENT IN 2009 – Authored by David Garner – Managing Partner of David Garner Consulting – The What, Where, When, How, and Why of investing in property in 2009 – Please give the site a chance to load.

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