Saturday, November 27, 2010
Dear Reader,
I found some interesting details in an online research report that came out this week. The report shows that Brazil's economy grew 19.6% between 2004 and 2008. You can see some of the report in English here.
Brazil, of course, is an economic powerhouse. It's self-sufficient in energy, with huge oil reserves. It's rich in mineral reserves. It boasts a strong manufacturing base, producing clothing, cars, shoes, airplanes, and just about everything you need for day-to-day living. With enormous tracts of fertile agricultural land, it's one of the world's top exporters of soy, ethanol, orange juice, coffee, and chicken. It sits on vast reserves of fresh water.
The report shows that the northeastern state of Ceará (Fortaleza is the capital of Ceará) outperformed Brazil for the same period, with an economic growth of 24.5%. Fortaleza announced a new free trade zone this year, covering 10,500 acres. A port upgrade at Pecem, outside the city, should bring even more jobs. The city is also building a new convention center, extending its metro, and adding a new boardwalk. This is all part of a $5.6 billion investment in infrastructure for the 2014 Soccer World Cup. Fortaleza is a host city for the games.
The most exciting story to emerge from Brazil in recent years is the rise of the middle class. In the last eight years, Class C (Brazilians earning $650 to $2850 a month) grew quickly. Today, 94.5 million people fall into Class C. They are driving the Brazilian economy, buying cars, washing machines, vacations, and new homes.
Investors in stocks and shares are riding the wave of this newfound wealth, betting on Brazilian companies that target domestic consumption.
Fortaleza benefits directly from the spending power of the new middle classes. It's the top tourism destination for Brazilians. Passenger traffic through Fortaleza airport in 2010 reached 4.16 million passengers by the end of October. That's an increase of 22.4% compared to the same period last year...and 2009 was a record year for passenger numbers.
Brazilians come to Fortaleza for the vibrant nightlife, excellent restaurants, and beautiful beaches. East and west of the city, white-sand beaches run for miles. On the east side, Brazilians tourists head to a giant water park (South America's largest), a cluster of little beachside bars, cafes and clubs at Praia Futuro, and some amazing colored cliffs at Morro Branco.
West of Fortaleza, the beaches roll to the horizon...silky, fringed with coconut palms, and luxuriously empty. Many foreign tourists come here to kite surf. Forbes reckons this sport is the new golf for Silicon Valley executives. The fresh ocean breezes west of Fortaleza provide the perfect environment for kite surfers. Little beach towns like Cumbuco offer chic lodgings, and kite surfing schools. For the rest of us, those ocean breezes keep us cool in our hammocks in the afternoons...
You can profit from Fortaleza's strong economic and tourism base. Mid-level executives relocating to the city, and tourists alike, face a shortage of hotel rooms, and suitable rental condos. That makes finding decent long-term and short-term accommodation difficult. But it means rental opportunities for property buyers.
A new condo project in Fortaleza will launch to the public next month. Close to the new convention center, and the city's university and legal district, it offers good potential for long-term rental. You can get a 3% pre-launch discount....low down payments starting at only $6,850...and monthly payments of $1300 over the 37-month construction period. The catch? This pre-launch offer is only available to Real Estate Trend Alert (RETA) members. To find out how you can join RETA, click here.
Margaret Summerfield
P.S. This is just one of the many pre-launch offers that RETA members received this year. They got in on deals in Mexico for $60,000 with developer financing...financed lots in Belize from $39,000...and a solar energy deal backed by the German government. If you want to hear about offer like these first (before other Pathfinder or International Living readers), and get special deals, discounts and payment terms, you should join RETA.
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