Real Estate Bubbles in the Third World?
 

Just noticed that a few people have asked if I want to sell my place in Rio. It has gone up about 80% in the 3.5 years I have owned it. The market had been pretty flat for years prior to this. 80% is pretty crazy and I could downsize and rent near this place. Bank the money and live like a king off the difference. World Cup is due here in 2014 then the Olympics in 2016. Sort of seems like the wrong time to get out but shit 80% is not a common move for 4 years.

80% in 3.5 years. Unbelievable.

Third World Real Estate - the prices must be lower.

However, there are even some $100 houses in Detroit, USA.

Read article here:
http://www.nytimes.com/2009/03/08/opinion/08barlow.html

Agreed. Take the money and run.
:helpme

Local currency is up

http://www.exchange-rates.org/history/BRL/USD/G/500

I would rent it...there will be still many tourists in Rio, crisis or not. And overcharge during the big events, of course. :)

Local currency is up so I am actually up over 100% if I turn it back to dollars. I wouldn't so that is not part of the deal.

Rents are the crazy part of it. They are about .5% of the properties value. I live in a very nice area. A Louis Vuitton store is 3 blocks away. So in nicer areas rents tend to be a lower % of value but this is really low. So then renting to tourists gets you to 1.5 but there are costs and I am not in Rio 100% of the time etc.

Good news is nothing is on the horizon to change it today but I need a plan.

Take the money and run like the fucking wind!