Brazil property is having its 40 seconds of fame at the moment, but is it all hype and no trousers? The answer to that question is always going to be primarily based on opinion, unless you know any authentic psychics that is.
I don't, but what I do know is that a blind man in the dark can see the potential gains to be made in the next decade, from a carefully chosen Brazil property investment.
Let me start at the beginning, with the massive potential for growth in the Brazilian economy:
Brazil has a massive agricultural sector; with the second largest head of cattle it is the second largest exporter of meat products, and is in the top 5 exporters of many other agriculturally produced food products.
Taking that into context; the largest contributor to Brazil's GDP before 1997 was its industrial sector, with the manufacturing sub-sector the largest contributor in the sector. Between 1987 and 97 the industrial sector was replaced by the massively growing services sector as largest contributor to GDP. The industrial sector regained some ground between then and 2006, but the services sector made up for 64% of GDP in 2007 (figures courtesy of World Bank).
This is mainly because of massive growth in tourism -- including medical tourism -- and because of the outsourcing boom that spread growth to the four corners of the developing world, as developed nations took advantage of their developing neighbours for cheap labour and everybody benefited (okay some more than others, but it's a capitalist world in which we live).
It is often asked why it is so common that the services sector has become the largest contributor to so many countries' GDP. Tourism is always mentioned as a reason, but sometimes it seems implausible that tourism would have grown sufficiently in such a short space of time to have become the main contributor to GDP.
However, tourism is not the only thing that grows, in recent years the advent of the budget airlines has generated billions in revenues for almost every country in the world. So it is growth in tourism as well as massive growth in the airline industry that combines with other elements of the services sector to put it on top.
This potential for growth went off the scale, when on top of all the above Brazil discovered a sizeable oil field lying below the sea and rock of its territorial waters. Everyone knows that oil is a massive revenue generator, and the find will certainly make Brazil one of the largest economies in the world.
Its massive potential for economic growth is enough to make Brazil property a favourite with property investors. So the fact that Brazil won the honour of hosting the World Cup in 2014, and Rio de Janeiro the Olympics two years later was simply the icing on the cake of Brazil property's popularity with overseas buyers.
Brazil property is currently being looked at very closely by almost every property investment fund currently operating, and is also the focus of millions of private investors who can see the massive potential profit from a buy to let investment in the country, which will also grow significantly in terms of capital value as well.
Like this post? Subscribe by email or RSS and don’t miss the next.
No comments:
Post a Comment