Good News if You’re Thinking of Buying in Brazil
When
I was in Brazil last month with some Real Estate Trend Alert members, I met a young Brazilian/American couple in Fortaleza.
They explained to me that as soon as someone from southern Brazil can afford
to, he visits the beaches of Ceara (the state which Fortaleza is in). This
is a common trend throughout the world--when incomes rise, people begin
buying things like cars and vacations. The emergence of a new middle class
drives consumer spending.
This is good news for us because Fortaleza is one of Brazil’s biggest domestic tourism destinations, and visitor numbers increase every year. Last year it attracted 3.25 million visitors. Three million were Brazilian--mostly from congested areas of the south like Sao Paulo.
No country has seen a new middle class emerge as quickly and as strongly as Brazil. If you have a job in the formal economy, access to credit, and you own a car…in Brazil you're considered middle class. In the past six years the percentage of the population that fits these criteria has increased from 44% to 52%. Brazil is now considered a middle class country…with a relatively weak currency.
When I first visited Fortaleza last year, $1 bought you R1.7…today a dollar gets you R2.3, a third more of the Brazilian currency. Foreign vacations are now much more expensive for Brazilians. And trips to Brazil are much cheaper if you are spending dollars.
That's why short-term rentals have been running at pretty much 100% occupancy
since early December. Official hotel figures are the same--indeed, the hotel
I stayed in was fully booked. This trend makes small condos on Fortaleza’s
boardwalk (like the ones I recommended to Real Estate Trend Alert members)
look even more appealing. These units will be perfect for short-term rental.
Limited developable land nearby means that new supply will be limited…and
therefore more desirable.
If you've yet to invest in this part of Brazil, my advice is: Don't wait
too long.
Ronan McMahon
Executive Director, Pathfinder Ltd.
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Mexico: The World’s Best Retirement Haven
For the second year running, Mexico wins our annual Global Retirement Index.
With rapidly rising fuel, health care, food, and travel costs, it’s nice to know there are still places where you can live well without burning through your retirement nest-egg. And Mexico is one of those special places. In Mexico, you can still enjoy a lifestyle that’s probably all but unaffordable for most people in the U.S. and Canada.
Find out more about this and other retirement havens here.