The emergence of Brazil as an overseas investment hotspot is related to its vibrant economic growth as well as its wonderful geography and climate. The demand for property, particularly in the Atlantic coastal regions around Bahia, has rocketed in recent years.

The majority of investors are choosing to buy off plan property rather than resale property. The reasons for this include:

• Off plan property typically represents better value for money than an equivalent resale property since you are buying direct from the development company.
• Off plan properties are brand new so tend to have the latest appliances, fixtures and fittings, and are built to a high quality specification.
• Off plan properties tend to be constructed within communities offering desirable, maintained features such as swimming pools, gardens, security, car parks etc.
• Off plan property offers favourable payment terms. Developers will allow payments in instalments throughout the course of the build. This can be important in Brazil since mortgages are not yet currently available to foreigners.
• Peace of mind: CFP International Real Estate Solutions undertake stringent due diligence checks on all projects that we promote, dealing only with established companies who can demonstrate a proven building pedigree. We also verify that each project has the necessary licenses and bank guarantees in place.
• Off plan property offers the buyer a wider choice of property type, depending upon their budget. For example the same project may include 2 or 3 bedroom apartments, penthouses, garden apartments and even detached villas - all within the same location.
• Better local amenities: typically the site of a new development is complimented by the presence of ancillary services such as hotels, shops, business centres, IT facilities, sports centres, etc. A typical resale property may not have access to such convenient amenities.
• Potential for “buy to flip” a short term strategy allowing buyers to realise a quick profit on their investment.

Whilst there are clear benefits to buying an off plan property, many people will still prefer to invest in an existing Brazilian resale property. Assess your requirements and budget, and speak to one of IPW’s experienced portfolio advisors who can give you more information on both resale and off plan property in Brazil.