Due to a solid and promising economic climate, Brazil is amongst the fastest growing and most sought-after worldwide property locations, while returns on investment from Brazilian real estate are currently amongst the highest in the world.

Brazilian property value increases of 20% over the past few years have attracted many a shrewd investor looking for a reliable market in which to invest. These returns directly reflect the exciting growth spurt Brazil is currently undergoing, while high levels of inward investment and a stable economy are encouraging increasing numbers of property purchasers to Brazil.

Reasons why property in Brazil is a good investment

•  Year-round sunshine, with average summer temperatures of 21°C.

•  Some areas in the north east of Brazil saw property price returns of 20%+ last year.

•  Current favourable currency exchange, making it cheap for foreigners to invest.

•  President Lula has brought great hope and improvements to Brazil, including a decrease in inflation to an all-time low.

•  Foreign investment is actively encouraged and you can own 100% of land and property.

•  Cost of living a mere 20% of the cost in the UK/Europe. Property maintenance costs are low.

•  Inflation low at 5.7%.

•  Increase of thriving manufacturing industries relocated to Brazil.

•  Expected to produce all of its own oil within the next year.

•  Great natural beauty with fantastic scenery and 7,000km of beaches.

•  According to some economists, Brazil will be amongst the economic leaders of the future, along with Russia, India and China.

•  Friendly nature of the Brazilian people. Vibrant cities with carnivals and music.

•  Low international risk of war, terrorism or SARS in Brazil.

Making an Offer

When you have decided upon a property in Brazil a verbal offer will need to be made through the agent and often some negotiations will follow. At this stage a lawyer should be appointed by you to formalise your final price agreement and to oversee purchase proceedings, including deposit or reservation payments. With off-plan purchases, the price is however, often fixed and dependent upon the current phase of construction.

The buying procedure may vary slightly according to which developer you are purchasing from so when buying on a new development, you will need to ask for specific procedures relating to the development.

Appointing a Lawyer

It is wise to appoint a lawyer who is fluent in your language so that you fully understand all the legalities and proceedings, who will carry out all necessary checks on the property or land in Brazil and fulfill the legal requirements of the sale.

Legal costs are generally between £ 500 and £ 1,000 depending on the value of the property purchased.

Your lawyers will:

• Check the current owners have the correcttitleto the property
• Check for any charges and liabilities still owed on the property
• Check your contract and advise youon the obligations for both parties
• Help you through the payment/funds transfer
• Ensure the propertyis registered in your name

Land Registration

The property registry system in Brazil is well developed and safe and real estate registration in Brazil is carried out by private notary publics. All property is registered at one single registry, which records details of the entire commercial history and the physical identification of each property. It is obviously very important to ensure that any property you buy has a clear title. Access to registry information is available to the public and includes relevant details on ownership, mortgages and other pending debts. In the larger cities, these services may be automated.

Brazilian CPF

You will need a Brazilian ID called a CPF in order to buy property. To get a CPF: You will need your birth certificate translated into Portuguese by a certified translator and legalized by the Brazilian Consulate in your home country. This will then need to be taken to the Banco Do Brasil with your passport and birth certificate in order to formally apply for a CPF. A small fee is payable and they following day you will receive your assigned CPF number at the Receita Federal. The CPF card will then be posted to you within two months to an address in Brazil.

Costs

Transaction costs, including stamp duty, fees etc. canaverage at between 3% and 8% of the purchase price. These costsmay differaccording to location, type of property and the State you buy in. If it takes a significant amount of work to establish title and ownership, the costs could amount to more.

Breakdown:

• A down-payment for your chosen property of usually about 10,000 $R ($3,500 USD).
• Property transfer fees of approximately 4%-5% of the purchase price.
• Payment can often be made all at once or in installments of 12, 24, 36 or 48 months, but interest rates can be as high as 35%. If you opt to pay in installments, bear in mind there is also a currency risk: if the value of the Brazilian Real goes down, your property becomes cheaper, and vice versa.
• 1% import tax on the transfer of funds from abroad.

Uruguay truly has a lifestyle and a region for everyone, depending on what you're looking for in the way of a new life abroad. Whether you want to live downtown in a world capital, in the heart of an old colonial city, in one of the world's famous beach resorts or on a sprawling ranch of 1000 acres in the heartland, you can be sure that Uruguay has a place for you.

Uruguay has much to attract the holidaymaker and second home owner, not least the wide sandy beaches and picturesque colonial towns. Punta del Este, 130km to the east of Montevideo, ranks up there with South America's premier holiday resorts attracting up to 700,000 visitors each year and has been bestowed with numerous nicknames from ‘the Pearl of the Atlantic' and ‘the Hamptons of Latin America' to ‘the St Tropez of Uruguay' and even ‘the Ibiza of Latin America'. Sitting on a peninsula that reaches out into the ocean, separating the surf of the Atlantic Ocean from the calm waters of Rio de la Plata, Punta del Este is an area of outstanding natural beauty offers all of the nightlife and all of the tranquility that you desire.

Living in Uruguay allows you to enjoy a higher quality of life with a sharply reduced price tag. From its old-world theatres and opera houses to its jazz festivals and exquisite restaurants, Uruguay looks and feels like Europe , but the cost of living is more like the Third World . But while the prices are low, the infrastructure is first rate. You can drink the water from any tap in the country. Telephone lines are available in less than 48 hours, and your high-speed Internet connection is just a phone call away in most cities.

The Buying Process

The process of buying property is kept simple by the Uruguayan Government; a foreigner has the same rights and incentives as a Uruguayan national. There are no restrictions on transferring capital in and out of the country and there is no income tax or capital gains tax for individuals, only businesses. The majority of real estate agents in Uruguay add a minimum of 3% to the selling price. Purchasers should mentally add a maximum of 5% to the listed price to cover notary fees, VAT, legal fees etc).