Brazil gets tough on land ownership

The Brazilian government is to toughen up an existing law in a bid to prevent overseas investors from acquiring agricultural land. It will mean that they will be unable to buy controlling shares in companies that own large amounts of land in the country.

A law was passed in 1971 which severely limited the outright purchase of rural farmland by foreigners or overseas companies, and under it no one was able to own more than one fourth of a county, and no more than 10% nationally which was meant to protect food security.

In fact this new law is to be passed due to fears that foreign governments such as China were likely to be interested in purchasing agricultural land in emerging markets to increase their own food security, especially with the worry of increasing food prices throughout the world. World food prices hit an all time high in February.

The Brazilian government has watched China, Korea and the Gulf States buy up land in Africa and does not want to allow this to happen here.

While Brazil is interested in attracting capital investment in order to increase its world exports it does not wish to relinquish control to other countries and views this as being a sovereign risk. It is estimated that foreigners currently own 4.5 million acres of land in Brazil, and this has grown by 11.5% since just 2008.

It is not yet known when this law will be implemented as the process has been ongoing since President Lula da Silva asked ministers to tighten it up last year.

Making your money go further in Ecuador

Ecuador is not somewhere that is widely considered by investors, but has much to offer, not least a lifestyle that has been compared to California in the fifties.

Ecuador coastlines are some of the world’s most unspoiled and affordable, yet they still offer all the modern amenities such as shopping malls, good restaurants and medical clinics.

Little wonder then, that Ecuador is fast being discovered by overseas buyers, many of whom are from the US, lured in by the cheap cost of living and low priced property. In Ecuador it is possible to buy a retirement residency on an income of just $800 a month. This status has a long list of discounts attached, some of which can be as much as 50%, including reduced air fares, goods and services.

The city of Salinas -- Ecuador’s biggest city -- is 90 miles from Guayaquil, and is a popular holiday spot with native Ecuadorians. It has great facilities for boating including  a yacht club, as well as surfing, sunbathing and fishing, and ample opportunities for fine dining in the evenings.

It has a mixture of neighbourhoods, with the north being more vibrant, while the south is quieter and more family oriented. It’s possible to buy an apartment close to the beach and an exclusive yacht club for $124,0000 which is just over $100 per square foot.  The same price will buy a three bedroom, three bathroom hilltop house with ocean views in nearby Ballenita.

For just a little more ($170,000), it’s possible to buy a 3410 square feet home with five bedrooms and access to a pool, not to mention gorgeous ocean views. With prices like these it is easy to see why this place has such appeal for retirees.

Overseas Property Investors Returning to Market Says Lloyds TSB

Lloyds TSB International research reports that overseas property investors sat out some during the recession, but with property prices falling and falling, many of them are now beginning to re-enter the market having much more confidence and finding some amazing deals.

Some British investors have held off during the last three years, watching as some property prices have fallen up to 40 percent. Research reveals that sales are still sluggish in some areas, but optimism remains that sales will pick up as more investors enter the market.

According to the National Federation of Estate Agents in France, property prices in France increased in 2010, which is the first time since 2007 that values have gone up. Additionally, the Germany real estate group, IVG, reports from the latest research that Spain’s property market is expected to recover at a quicker pace than the rest of the economy.

Barry Luhmann, head of lending at Lloyds TSB International, states that some of the markets that were hot in 2007, such as Spain and the US, are now full of deeply discounted deals.

Spain’s average housing prices have decreased 23 percent since the 2007 peak, although key tourist destinations such as Ibiza and Costa Blanca have seen as much as a 40 percent decrease. Such declines in prices have British buyers evaluating their finances and the market much more seriously.

As the economy improves, investment interest will increase not just in Spain, but all around the world. As the economy shows more signs of stability, the real estate sector will see noticeable, positive changes as well.

American Economy Showing Signs of Recovery

According to the Federal Reserve, America’s labor market is showing improvement this year due largely to increasing retail sales and a strong growth in manufacturing.

In its Beige Book report, the Federal Reserve reported that all Districts are reporting some improvement, as labor market conditions improve and are growing considerably. This news beats the last survey, which was January 12^th, which stated that the job market was “firming somewhat.”

The central bank in Washington has reported that the economy has continued to expand moderately. Many regional banks, including San Francisco and Philadelphia, are describing their regions and economies as growing stronger and experiencing moderate growth. In fact, eleven of the Federal Reserve’s 12 regional banks have reported a good amount of growth, with only Chicago reporting a slight decline in growth.

The last meeting in January among policy makers saw optimistic views on the economy, but still there was some dissatisfaction with job growth. A plan to purchase $600 billion in Treasuries through June was proposed, with hopes of increasing economic growth.

According to Michael Moran, Chief Economist at Daiwa Securities America, Inc, the manufacturing sector is strong and growing well. Cities such as Boston, Cleveland, Minneapolis, and Dallas reported “noticeable improvements” and have high expectations for continued growth and recovery.

Regarding the Labor Department, it is reported that the world’s largest economy added 190,000 jobs in February, which is the most jobs added since May of 2010.

Regarding the real estate sector, the Beige Book reports that it is varied and overall it is not growing nor digressing, but optimism remains for a year of growth and recovery for 2011.

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Brazil Property Attracts Increasing Investment

If you’ve been keeping up with Brazil the past year or so then you’ll already know that with a booming and growing economy, the property market has been the source of great interest in overseas property investors.

Recently, it has been reported that Brazil’s government is ensuring that the growth of the economy will remain stable by taking steps to keep it sustainable. It has also been reported that the government is planning on $30 billion in cuts, which will result in a reduction in defense spending as well as the hiring of civil servants coming to a halt.

With Brazil’s exploding and excessive growth, cuts are necessary to keep the country at a sustainable level. Guido Mantego, Brazil’s Finance minister, stated that the cuts are aimed at slowing down the growth but not too much as to stop the growth completely.

Brazil’s economy grew by 7.5 percent in 2010 and inflation is rising. The country has been very popular globally, with property investors taking notice and investing in the country hoping to increase the value of their investment portfolios significantly.

Experts anticipate that the expanding economy and property market will continue to be favorable for the next five to ten years. Additionally, the Property Price Index will soon be out, which will compare different types of properties in Brazil, such as residential and commercial. Experts believe that this index will be key to monitoring the market and help avoid bubbles and property crashes in the future.

Romania Property Market Seeing Increased Foreign Interest

Romania is seeing more and more interest from overseas property investors, as the property market works towards recovery. Investors seem to have a good deal of confidence that the property market in Romania will be worth the investment over the long haul, as property values are expected to increase over the years. According to Vission House, overseas property investors are “quicker and more determined” to sign sales contracts than residents of Romania.

With the property market beginning to show more signs of life in certain regions of the world, Romania is no exception. Plenty of foreigners who work in Romania, who normally rent homes, are purchasing homes due to the low prices and affordability. They are looking at it as an investment opportunity or perhaps they may end up staying in Romania. Either way, the decision to purchase saves them money when compared to renting.

The northern part of the capital city, Bucharest, is seeing a pick up in the purchase of apartments, as the prices are thought to be at their lowest sales prices. Rental vacancies are quite low so property investors believe investing in apartments is a safe and wise investment.

Just recently, the Bucharest Stock exchange listed one of central and Eastern Europe’s largest property restitution funds and experts hope that this will give an added boost to the property market, as this may draw even more foreign investors to the area.

Within the next two to three years, property experts believe that they will see Romania’s economy and property market strengthen and grow.

German Property Offers Excellent Value for Money

It seems as if you get a lot more house for your money in Germany these days, as home prices set at more affordable prices have peaked the interest of a rather large number of people.

The general consensus as to the reason German property seems to be such a bargain is that there is a steady growth in supply of homes. You can get a very nice four bedroom, three bath with a garage, sauna, pool, and garden in the suburbs of Berlin for under $600,000 Euros. This price has peaked the interest of foreign investors looking to purchase in the area.

When compared with similar properties in Britain, Australia, and New Zealand, Germany’s prices are quite the bargain.

Why have German house prices been able to remain stable and more affordable? According to an analysis by the German property market, the reason is because Germany’s property market has never had a big boom or crash.

Before the global financial crisis, when property markets in other countries soared, Germany’s prices actually fell. In the 7 years between 2000 and 2007, Spain’s home prices soared 94 percent, New Zealand 80 percent, and Britain’s increased 80 percent, while Germany’s home prices actually decreased by 18 percent.

Germany’s property market has been marked with stability over the years.

What distinguishes Germany from other countries is that it has built more houses and flats then other countries and has zoned more land for development to be sure that there is a continual and steady supply of housing. Additionally, German builders and developers are able and willing to make sure that the building process is smooth sailing, taking into consideration supply versus demand.

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