Ways to Invest
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• Land Banking
• Development of Land
• Purchase of Off-plan Development
• Purchase of Property in a Condominium
• Purchase of Second Hand Property
• Purchase of Agricultural Land
A common way to invest in emerging markets is land banking; this involves buying a piece of land to benefit from future capital appreciation. This strategy can be particularly successful when development and infrastructure improvements happen in the surrounding area, for example a new marina or golf course could be built. Our well informed local contacts can provide up to date information on this.
If the land does not have building permission, this can be obtained to add value. In addition if the land does not have amenities, such as water and electricity, these too can be added. Typically however, most investors buy land with full building permission and the necessary infrastructure in place, so they can build immediately if they desire to do so.
Many people buy land with the intention of building a property, perhaps as a holiday home, or simply to sell the end product on completion, thereby maximising their profitability once the property is sold. The downsides of this are the costs to finance a project from start to finish can be considerable, as well as the time and effort involved. Brazil Bahia Property will guide you through this process.
Brazil has a highly investor friendly legal structure for property development. Once the developer registers his plans with the land registrar, ownership of the development automatically passes on to the investor. All finances are held in eschew throughout the period of construction, to prevent fraud and deception. In the face of poor performance, investors can legally remove and replace the developer. We can guide you through the whole process.
Purchase of Off-plan Development
Off-plan developments are effectively where the investor buys a property which is not yet completed and is set to be finished over the coming months or years. Payments are typically staggered. Like many developing property markets, off-plan developments are becoming increasingly rife in Bahia. They have proven to be highly desirable to both domestic and international investors alike.
Many investors favour off-plan developments as final completion can often be up to a few years away, this gives the buyer a chance to stagger the payments, meaning the outlay does not have to be all at once. This has been particularly alluring for Brazilians, who traditionally have struggled to access the mortgage market.
Buying property in condominiums is particularly popular in Brazil, bringing the benefits of increased security and better organisation and layout. Demand is often high due to the extra-status conferred rather than a direct fear of crime. Condominiums are rife throughout Bahia, and indeed many off-plan developments tend to be condominiums.
Purchase of Second Hand Property
Second hand property transactions are the mainstay of most property markets, and Brazil is no exception to this. Second hand property transactions are very similar to new builds, with the major difference being that it is prudent to perform extra legal checks to verify such factors as ownership.
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Purchase of Agricultural Land
Due to the huge importance of agriculture to the Bahian economy, as you can imagine the area is covered with farms and agricultural land. Many investors have chosen to purchase these, to gain from capital appreciation as well as to benefit from future growth in Bahian agricultural exports. In addition actively managed farms can provide an attractive income for the investor.
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