Brazil is in the best position to sustain the credit crunch

UK (SANEPR.com) April 23, 2008 -- Experts say that the country in the best position to sustain the global credit crunch is Brazil. Some industry experts, the likes of Regis Abreu, from Bloomberg, even confirm that the global credit crunch will not impact Brazil at all: “Brazil will still enjoy economic growth despite the downturn in the global marketplace.”

Looking at the country’s powerful economy which has been expanding from strength to strength over the last five years and Brazil’s recent stock increase in four consecutive days demonstrates the country’s economic power and ability to sustain the present instability of the world economy. It is one of the few countries that can boast a real estate market which is still generating capital growth as high as 25%, especially in the north eastern part of Brazil.

This is excellent news for property investors looking to diversify their property portfolio, by minimizing their risk levels when considering emerging markets. Brazil makes for an aggressive market, providing excellent capital appreciation and ROI; but unlike most other emerging markets and due to its strong economy, it also affords investors a secure and stable investment.

Brazil is also showing signs of a future with lowering interest rates and low inflation according to economists. This coupled with foreign mortgages due to be made available by the end of 2008 is sure to fuel international real estate investment into Brazil. What’s more this country can self sustain the dramatic expansion of residential and commercial development due to the large discrepancy between demand vs. supply, whereby demand by far outweighs supply. This translates into first-rate exit strategies whereby re-sales are not solely dependent on the foreign market; whilst the locals will also want to buy property. Plus and due to its very large population of millionaires who prefer to holiday within their own country, the potential for high rental income is unprecedented.

IN2 property investments Business Development Director, Mr. Paul Morrant recently stated, at an international property show in Madrid that in his opinion Brazil is the focal point for solid, property investment opportunities. Prices are still low in comparison to other markets. The country’s strong economy provides this well positioned, emerging market with a unique sense of stability and security that you will not get in other new markets where prices are low and capital appreciation is high