Quote:
Originally Posted by Manfap
Yep Brazil is booming but it will crash in a few years once everything becomes too expensive for the normal people to afford. Itīs like Spain 10 years ago, the european money than poured in mainly from German and French banks looking to cash in on property. House prices more than doubled in 3-4 years and normal people couldnīt afford to get a house, so the banks started lending 5 times salary.. and we all know how well that ended up.
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You always must step out before it collapses or growing less than it has done. I know people who didn't want to invest 10 years ago, cause it was rising very hard at that time also. Now they regret that they didn't invest. Also you can look at locations that are still developping and where prices are reasonable. More Brazilian people have money for holidays and go to the coast, and there are still opportunities. In Rio it is still crazy, prices of houses can double in 1 year or 6 months. But will it collapse, or will it be like in London where foreign people keep buying property? (in Holland/Amsterdam it collapsed).
I think in Brazil it will go on for some more years. More people are getting in the middle class (40 million people went from poor to middle class standars) and want to get of the poor neighbourhoods. And Brazil is lucky; they have gas, oil, agriculture, minerals and long beaches.
Investing is always a risk, look for shorter term investments (2 - 7 years). You also don't want a "Chavez" getting in control here, that could happen also. But puttingyou money on a European bank is also getting more risky. And buying property in most parts of Europe is stupid now.