CHAPTER SEVEN: PROPERTY INVESTING IN BRAZIL

The fifth-largest country in the world, Brazil borders every country in South America except for Ecuador and Chile and straddles four time zones. Thirty-five times the size of the United Kingdom, the country boasts a huge variety of landscapes, from the dense jungle of the Amazon rainforest, to the beautiful white beaches of the 7,250-kilometre coastline, to the mountains, valleys and waterfalls of the interior. Such diversity, along with the climate, the rich cultural life and the hospitality and passion of the Brazilian people, has made Brazil one of the biggest tourist destinations in the world, with something for everyone.

Historically, Brazil’s economic fortunes have been mixed. However, it is now keen to assure the world that it is a country on the way up. In 2002, whilst America was focusing on security and on a potential war against Iraq, Brazil became part of the BRIC alliance, signing a trade and cooperation agreement with Russia, India and China and securing an agreement to supply these countries with raw materials and natural resources. Following this, the country’s GDP grew by 5.3%, its fastest rate since 1996.

Since 2003, President Lula’s administration has steadied exchange rates and aided social stability, and today Brazil ranks as the 13th largest economy on the planet. Goldman Sachs has predicted that it will become the fifth largest by 2035, making it one of the most compelling equity investment cases among the world’s large countries.

Is This a Good Place to Buy?

Brazil is classified as a…