The Greates Oportunities of Q1 2013

The year started at full speed here in Brazil, as a tradition the people really start to make business after carnaval, but in 2013 they started early. We have a lot of great opportunities for investment both in long and short term I have listed the top 3 below to give you a preview of what is to come.

1 - HOM Lindóia

This building is really interesting, it follows the already successfully trend of integrate Home and Office but brings a Mall along, that's why HOM. That is nice but not very different from the other launchs we have, and it would be just another building if it didn’t had a guaranteed profit.

A guaranteed profit is given by the constructor of 1% per month on the commercial rooms. As long as you put the office for rent (which would give you about 1.5%pm of profit) the constructor pays you 1% of the investment per month. Now that is a risk free investment.

2 - Trend 24 de Outubro

What is better than guaranteed profit? What about the opportunity of invest in a building that has not yet been launched? I have access to the Trend 24 de Outubro a new launch of Maiojama, they will release it to the public as pre-launch next week, but as I really like you guys I brought it here early.

Maiojama has a history of super fast sales (all unities in the first few days) and is great for short term investment. They are one of the most reliable constructors in Brazil and are very successfull in selling their unities.

3 - Duo Concept

I have already talked about this construction on previous post [LINK], as I gave it as an example of what you can find here in south Brazil. And thinking, who don’t want to be part of the example of what is good in a market?

I certainly want and that is why I’m bringing it up again. Duo has only a few unities left and will have none by the end of march. As i said in the other post the profit here is of 175% in the commercial unities, Duo has one of the best locations in the city and the new concept (new here) of having a hotel together with office unities. The hotel part can be an investment opportunity too, Porto Alegre has one of the lower vacancy rate at hotels in the entire country, and we don’t have any beach.

These three are my picks for a foreign investidor, as they are relatively cheap (starting at UD$150.000) and tend to increase a lot in value.

Do you plan on investing in Brazil? Think these opportunities are interesting?

Why Invest in Brazil?

The housing prices in the United States won't see much change in 2013. The employment still low and the banks are strugling to stop the foreclosures. In Brazil we are going the other way around, there is a high employment rate and the cost for financing the acquisitions is lowering.

The United States real estate market is seeing a small increase in prices (as you can see in the Zillow Home Value Index), this increment is even smaller when compared to the Brazillian prices that are expected to increase 15% in 2013.

Measures of the government to keep the brazillian real estate market heated are doing their job. The Minha Casa, Minha Vida plan that began to help the lower classes get their first houses has elarged its scope and now can be used to buy properties of up to R$500.000. Along with that the tax rates are going down for this kind of loans.

To make things clear let's have an example: A commercial unity at the Duo Concept building costs US$150.000 it is going to be delivered in 2015 when it be costing US$D195.000 an increase of 30%. If you take a loan and pay in this two years 40% of the cost (that is the usual way of buying real estate in Brazil) you will sell your unity in 2015 for US$105.000 with an investment of US$60.000.

Whatch a video of the building

I will be talking a lot about this on the blog so stay tunned for more. If you have anything to say pelase comment below.