Buying A Bargain Beach House in Brazil in 2021

Are you thinking of buying a beach house in Brazil in 2021 ?

If so you have picked the right decade, year and moment as there has literally never been a better time to buy a property in Brazil. Brazil Beach House has seen a big upturn in demand from foreign house buyers in Brazil over the past 12 months and this is in large part down to the Brazilian exchange rate which has tumbled over 40% since the beginning of 2020 and continues to slide to the US Dollar, Euro and British Pound.

Looking back to mid 2019 the exchange rate was hovering at 3.7 Reals to the Dollar. Today on January 11th 2021 we are at 5.4 which is a depreciation of 68%! Simply put, your 100,000 USD is today worth 540,000 reals compared to 370,000 reals just 18 months ago. This gives you a considerably increased bang for your buck and allows you to snap up a real Brazilian beach house bargain.

Brazil still has the spectacular beaches ,tropical rain forests,colourful,vibrant culture and warm loving people. It just happens to be a lot cheaper to visit and buy a lifestyle property there right now.

Yes you say, but what about the Corona Virus in Brazil?

It cannot be denied that Brazil is among the countries hardest hit by the virus. The government have grappled with the issue and have come up short in many respects but Brazil has not imposed the more severe personal restrictions on movement and personal freedoms.The vaccine is now being administered the country remains open for business, travel is still possible and Brazilians are generally following the rules on social distancing and mask wearing.

In spite of the pandemic,the Brazilian real estate market saw a big domestic surge in demand in the second half of 2020 as record low interest rates fuelled mortgage lending. The Brazilian luxury beach home sector also saw a big rise in sales as people began to re-assess their lifestyles, move away from the crowded cities and opt for more space,cleaner air and beautiful nature.

This trend is set to continue for 2021 so best to jump in while your dollars,euros or pounds remain strong.

I look forward to welcoming you to Brazil Beach House and showing you what you can buy on the beach in Brazil.

Mike Smith - RE Broker in Brazil - 2021

http://www.brazilbeachhouse.com/

Whatsapp; 55 84 99993 8936

Buying a Beach House in Brazil in 2020 ? 5 Key Questions To Think About.

Are you thinking of buying a beach house in Brazil because of the current exchange rate ?

It is true that there has never been a better time to purchase real estate in Brazil with the US dollar getting closer to 6 reals, Brazilian properties are getting cheaper and cheaper in hard currency.

If you are an overseas Brazilian, have business connections, family ,an investment project or just want to take advantage of market conditions it is a very good idea to make plans and search for bargain buys in Brazil.

The corona virus will pass,restrictions will ease,the economy will get back on track and the Brazilian real will strengthen.This could take months even a few years but it will happen and you will have purchased a property at the right time for the best possible price.

So lets say you do decide to go for it and purchase a property in Brazil. What do you need to think about before, during and after your investment? Here are 5 key factors to keep in consideration when buying a Brazilian beach house

1) Why are you buying a beach house?

Its best to have a definite plan. Are you moving to Brazil,buying to use as a holiday home with possible retirement ,do you have friends and family that will use the beach house when you are not there.Do you have a plan to cover your costs through rentals.If so how many days,weeks,months do you need to rent for?Are you looking for capital appreciation,if so,how much do you expect o make on your brazilian investment?

2) Who is going to look after your property?

For basic upkeep, maintenance, rental management etc,do you have a support network in place of reliable people who can ensure that your home is taken care of.If not this is something you will need to look at during the purchasing process.Having someone trustworthy,living close-by who can keep an eye on things and be in easily reachable is very important.

3) Who is going to pay your bills,running costs?

This is often an issue for first time foreign house buyers in Brazil as it is not easy to open a bank account and/or pay online for utilities,services etc. It is very useful to have someone locally who can cover these costs from your money transfers via transferwise, revolut etc, especially in the first few months post purchase until you find other ways to pay.

4) How are you going to cover your costs ?

It is good to have a plan in place for short-term rentals to at least cover your property expanses.Lets say you need to pay ,a part-time cleaner,gardener,the odd mantainence job,then you have your electricity,water,property tax.perhaps cable and/or condo fees.How much will this come to monthly and how many days would you need to rent to pay these costs and do you have the support network in place?

The biggest reason for owners to sell their brazilian beach homes cheaply is because they no ,longer use them enough and the property becomes a financial liability.

4) How are you going to sell your Brazilian Home For a Profit?

This is the million dollar question! If you buy a Brazilian beach house in a desirable location with good infrastructure at the bottom of the market in terms of dollar,euro,pound value,there is a very good chance you will make a nice profit in 2-5-10 years time.If you can demonstrate that the property pays for itself from rentals,even better and if you are turning over a decent income and profit on the rentals you are in an even better position to maximize your capital gains.

I do believe that this is a brilliant time to invest in a beach property in Brazil simply because it is so cheap at the moment and there are no guarantees it will stay that way.

However buy smart and have a plan to to ensure that your investment works and does not turn into a liability.

Are you planning on buying a property in Brazil this year? Do you have any questions? Any advice you could help us with?

Please leave your comments below.

Mike Smith

Real estate consultant in Brazil

15 years helping foreign investors buy Brazilian beach homes.

www.brazilbeachhouse.com