Property investment into emerging markets may carry
some degree of risk. However, the degree that market
risk in a particular country affects a property
investment
depends largely on thorough due diligence
conducted
prior and during the purchase process.
Although Brazil presents few problems for foreign
investors,
it currently has one of the world’s least equal
societies with
a huge gap between rich and poor.
However, the government
is actively working to
address the problem with a public
housing program
which will allocate US$15 billion in the
next two years
to build one million houses for the poor.
Inflation used to be a perennial problem in Brazil but
the
government’s inflation-curbing measures have kept
it under
control and figures in April 2009 are
consistent with their target
of 4.5% for the whole of
2009. Brazil has not entirely escaped
the effects of the
global economic downturn, although the
signs are that
it will recover faster than many countries
because it is
not burdened by debt. |
 |
|
According to The Economist, “the solid financial
position of the
government and state banks will
support countercyclical measures
that will mitigate the
impact of the global recession.”
“Domestic demand, and in
particular investment, will
make a much
stronger
contribution to growth
than in the past, supported
by the
deepening domestic
financial markets.”
Source: The Economist |
