There’s a lot of talk about Brazil stocks selling way below they value recently, and the fact that the real, the Brazilian dollar, has lost some of its value this year. Those facts may be true, but Brazil is still the place to make a serious return on your investment, according to BRL Trust the largest independent administer of investment funds in the largest country in South America.
BRL Trust believes there are ten good reasons to invest in Brazil, and there are a lot of investors around the world that agree with this ten-year-old administrator and manager of investment funds, mergers and acquisitions. The first reason is obvious. According to the U.S. investment firm, Goldman Sachs, Brazil will be the world’s 5th largest economy by 2025. The next reason investors should keep a close eye on Brazil is, the government has no restrictions on outside investors buying property and land in their country. BRL Trust also thinks the ongoing fiscal reforms, and the fact that the economy is more stable than in previous years is playing a part in driving interest rates down in Brazil.
Reason number four is, real estate prices are still extremely attractive in certain parts of Brazil. There is also a property deficit of between seven and ten million first buyer homes. Investors could have a clear exit strategy when it comes to investing in real estate purchases. BRL Trust also points out that financing is available, but with interest rates dropping real estate values will increase, so timing is an important factor in investing in Brazil real estate.
BRL Trust says the seventh reason is, Brazil has investment grade rating by all the main agencies: Moody’s, Standard & Poor’s and Fitch Ratings. Brazil also has more than 1 million multi-millionaires, and the growing middle class now has access to financing. Those two factors have created a highly attractive consumer market.
Reason nine is, Brazil will be less affected by the international credit crisis because of its strong domestic economy, growing GDP and huge oil reserves. Reason ten is an important one. Brazil is a peaceful nation, and it is not a target for terrorism. The democratic government may have some issues, but causing international scenes is not one of them.