News: Brits shun France and Spain for Brazil

Tue, 27 Nov 07

As the British property market begins to cool, Brits are moving away fom traditional destinations such as France and Spain...

Dale Lovell, Editor of JustOverseas.co.uk explains;  “While property enquiries for traditional countries usually targeted by British buyers, such as France, Italy and Spain, are still proving popular among our users, we are also seeing considerable interest for properties in other destinations such as Latin America and Germany.”

JustOverseas.co.uk argues that the increased interest in these destinations can be attributed to British buy-to-let investors moving away from the British market, where rental yields are now typically as low as 2-3%, in favour of more lucrative returns overseas.

Real bargains available

Many emerging markets typically see rental yields above 10%, as well as increase in equity value, something that is unlikely to continue in the UK after more than a decade of property price rises.

Continues Mr. Lovell; “There are some real bargains available in the emerging property markets if investors choose wisely. As with any property purchase, location is key, but other factors to consider should be the economic outlook for that particular country and the overall rental market. If these factors are good then the chances are your investment will grow and you will not be left with an expensive property you can’t find a tenant for.”

To help Buy-to-Let investors find their ideal investment property abroad, JustOverseas.co.uk argues that Brazil will prove to be an excellent investment opportunity in the coming years.

Brazil rental Markey ‘strong’

Brazil is one of the four largest developing economies in the world and Goldman Sachs predicts that the country will be the 5th biggest global economy by 2050. Also, foreign investment is encouraged in Brazil, and there are no restrictions for foreigners buying property and ownership is 100% freehold.

Brazil has a large population of more than 180 million, with a small number of home-owners, therefore the rental market remains strong. As the economy expands buying power is likely to increase, causing property prices to rise: the exchange rate is also currently favourable for British buyers.

Popular places to buy include the major cities such as Rio de Janeiro and Sao Paulo – where some developers claim 18% rental yields are achievable – and beach resorts such as Natal, where a new International Airport and numerous new developments are attracting investors from around the world.

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