Mortgages Predicted Soon for Brazil Property Investors
As you may already know if you are reading this that the property investment market in Brazil is a hot topic. Brazil investment properties are predicted to achieve very good capital growth and rental income potential. In fact some properties in the northeast have increased in value by around 100% in the past 3 years.
The positive growth is due to strong economic growth and increased exposure of the Brazil property market as well as increased investment and development of the touristic investment property industry, both public and private investment.
Brazil offers an excellent range of holiday homes for people looking for a place in the sun or to enjoy the excellent culture and carnival celebrations.
These are just a couple of the many reasons that Brazil property is increasing in popularity with foreign buyers and investors.
In fact an increasing number of international property developers are now building a selection of different superb touristic residential resorts targeted towards foreign investors 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 and have been doing so for the past few years. However in our opinion the only thing holding the market back is the lack, or shall I say non-existent mortgages for foreigners.
With the massive potential of the Brazil investment property market we believe that mortgages will be available soon and in our opinion it is the clever property investors with available funds that are getting in on the market early which are set to make good amounts of capital gains as soon as the mortgages do become available.
The Brazil mortgage market is very young and under developed. A few mortgage products were introduced for Brazilian's in 2005 with around 50,000 mortgages granted but they had high interest rates.
It is quite common knowledge that quality housing and accommodation is a major issue for the majority of the Brazilian population. We believe that the Brazilian government and banks know that there is a need to make mortgages more readily available both for the Brazilian people to improve the quality of living and also for foreign national to invest.
Because of the growth in demand for quality property and the many quality Brazil properties and new real estate developments both residential and touristic resorts being built with the foreign buyer in mind we are predicting that the Banks in Brazil will increase the availability of mortgage products to both the Brazilian people and foreign nationals very soon.
At the time of writing this article (Sep 2008) the only option for foreign nationals looking to purchase a property in Brazil is to arrange alternative finance like equity release or a remortgage of there property in the UK for example. This is preventing a good number of potential property buyers from investing in Brazil property because of the lack of funds.
Therefore we predict that as soon as mortgages do become available for foreign investors buying in Brazil the property market will of course become more accessible and an increasing number of foreign people will start to purchase property which will in turn have a positive impact on the market and the value of real estate will increase. Therefore investors who have already purchased should see good capital growth when mortgage products for foreign nationals become readily available.
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