Saturday, October 30, 2010
The beaches here are long sweeping stretches of powder sand
Dear Reader,
Brazilians head to the polls tomorrow, to vote for a new president, in election runoffs (no candidate achieved the required 50% of the votes on October 3 to win outright). Pundits reckon that outgoing president Lula da Silva's chosen successor, Dilma Rousseff, should win. Regardless, the winner takes on a country, and an economy, that is the envy of many other countries across the globe.
In stark contrast to the US, and the UK, (and even my home country, Ireland) there's no talk of austerity measures or the need for mega-cutbacks in Brazil. The concern isn't how to shore up a weak currency...but how to keep a strong currency reined in.
Indeed, The Economist predicts that Brazil should overtake Italy next year, becoming the seventh world economy, based on the demand for commodities and raw materials from Brazil, the strength of the real, and domestic demand fuelling the economy. The economy should grow 7.5% this year and 5.9% on average between 2010 and 2014, according to the country's finance ministry. Unemployment (6.2%) is at the lowest level since 2002.
Bradesco, Brazil's second-largest private bank, posted a larger than expected third-quarter profit this week. Brazil's growing middle class took on loans for new appliances, cars, and houses, boosting the bank's profits. Companies borrowed to fund the cost of new equipment, and factory expansions, to meet rising consumer demand. Bradesco reports that consumer credit rose 23% year on year in the third quarter.
The middle classes in Brazil are growing in numbers and income level. Many can now afford to buy their own home. That domestic demand drives the property market here. In the northeast of the country, less than 2% of property sales are to foreign buyers.
One of our on-the-ground contacts in Brazil's northeast brings us news of his own this week. He has one unit left in a small beachfront development thirty minutes from Fortaleza.
Set alongside one of the area's nicest beaches (you can see the beach in the photo above), all the condos have ocean views and direct beach access. The development has luxury spa and pool areas, a gym and a Jacuzzi. It's complete, and ready to move into.
You won't have to look too hard to find gourmet food; new restaurants in a neighboring village offer fine dining, courtesy of international chefs. A luxury hotel nearby opened this month, charging up to 500 reals ($293) a night; future hotel plans include a golf course.
The unit came back to the developer when the overseas buyer couldn't make his finance payments. The developer wants to finish with the development and move on to his next one. To do that, he's willing to cut the price of the condo. Listed at $89,000, he will take $71,200 from a cash buyer to seal the deal. That's a 20% discount. He will offer finance (and a 5% discount) if you're interested, but can't make the full cash payment. The payment terms are a third down, and the remainder financed over 24 months. Contact Mike here, and he'll send you more information on the unit and the offer by e-mail.
Margaret Summerfield
Posted Under:
beachfront, brazil, appreciation potential
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