Buying land in Brazil is proving to be a sound proposition
as prices are low and availability high, even beachfront
land plots are being sold for the price of a small car.
The types of land available can make this area of South
America an exciting investment opportunity. According to a
recently released study, prices for agricultural land in
Brazil are heading upwards. The average price for a hectare
has risen more than 16% over the past year to 4,135 reals
($2,500) .Since 2005 the price of such land has increased
35%.
This seems to add to the good news for the Brazilian
economy which is going from strength to strength. November
2007 saw the Brazilian government announce huge new oil
reserves discovered off its coast. Experts predict that it
could turn the country into one of the biggest oil
producers in the world. Petrobras, Brazil's national oil
company says it believes the offshore Tupi field has
between 5bn and 8bn barrels of recoverable light oil.
The worldwide spike in food prices, spurred by a drop in
food stocks, and the growing interest in crops that can
produce biofuel are behind the demand for land. Large
Brazilian and foreign companies are leading the charge to
acquire land. Foreign firms already own 5.5 million
hectares.
Buying land to build residential property is a fairly
simple process but one that needs an independent lawyer to
manage. Lawyers should check that the people or the company
selling the land actually has full title. You don't want a
disgruntled relative turning up a few years down the line
claiming its their land. A good lawyer will also:
1.)Check for any charges and liabilities still owed on the
property
2.)Advise you on the purchase agreement and the obligations
for both parties.
3.)Register the land to you.
One of the first things a determined buyer should do is to
obtain a Brazilian ID called a CPF you can obtain one of
these by submitting a copy of your passport with a request
for a CPF signature card. Once you receive the signature
card you simply sign it and send it back with a small fee,
and your CPF number is assigned to you at the Receita
Federal. This can then be included in any purchase
agreement. A formal copy of the CPF card will be posted out
to you at an address in Brazil - usually your lawyer's
address for ease.
Brazilian real estate is causing quite a stir at this time,
Brazil's economy and housing market will make Brazil one of
the largest economy in South America. The time is now to
buy land in Brazil
My top tip when buying land in Brazil is to buy land with
zoning and planning permission, it will be easy to sell
when the time comes to reap the benefits of your investment.
----------------------------------------------------
Author Nicholas Marr has a passion for international real
estate and Brazilian property,he is responsible for
overseas property websites at http://brazil.homesgofast.com
and http://www.brazilian-homes.com
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