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Opportunities and Risks on the Real Estate Market in Brazil

For investors who wish to have a rate of return of about 15% per year, there are opportunities in the Brazilian market to achieve this percentage. That it is very good for a low risk investment and tied to a property, which ensures that the thing will not turn powder overnight.
Thus, we list below some sectors that have good real estate investment opportunities, since a previous study of the project, the neighborhood and the documentation, is done in the area to be acquired:

    - Construction of residential buildings in the suburbs in large cities for low income people
    - Purchase of buildings at auction for renovation and resale
    - Construction of residential houses for people with high-and middle-income in developing cities
    - Construction of commercial buildings to sel-employed professionals in outlying neighborhoods

Listed above are the opportunities in the current stage of the Brazilian real estate market, those that seem the most prominent, however, like any business, there are risks, which mostly are as follows:

    - Analysis Documentation of the land or the building
    - Futures urban projects that can have negative impact on the mobility of the region or the liquidity of the business
    - Brazilian national currency devaluation, which may incur in a foreign exchange loss for the investor
    - Decrease of bank credit, especially for low-income people to acquire it property

These are the potential risks in these and other investment property in Brazil, but if the investor does a detailed examination of the situation of the region where he wants to build, these risks are controllables and the return in Brazil is still far superior to the main foreign markets foreign, so investment in Brazilian Real Estate is worthwhile.