Beautiful beaches, extravagant food, and rich culture are three of many reasons why people look to Latin America for real estate. Mexico, Brazil, and Colombia, are the first three countries that usually come to mind when an individual mentions the notion of buying property. All three of these countries come with benefits and challenges in the real estate market that are uniquely their own.
Brazil is a country on the decline. While unemployment rates continue to rise, real estate sales remain low. The sad dynamic in Brazil is the inflation rate that is not consistent with falling house prices. Although the cost of goods and services increase by the day, home values are on a stark decline. Such opposition makes Brazil less enticing for domestic investment. Prospective buyers view homeownership as more of a burden than a benefit since the likelihood of being underwater is high.
Still, Brazil is a gold mine for foreign investors. Home prices continue to fall, which means that buyers from countries such as the United States and Europe can get more for their money. House prices fell by nearly four percent in Rio de Janeiro during the third quarter and are expected to decrease by even more in coming months. San Paulo, which is Brazil’s biggest real estate market, saw a slight rise in prices, about 0.20 percent, but not nearly enough to account for the inflation that has plagued the country’s economy for years.
Although Brazil is the ideal country for foreign investment, few international buyers take the bait. Even the most recent Olympic Games in Rio de Janeiro could not pull the country out of its deep recession. Although stabilization is on the horizon, the nation’s economy is expected to take another financial loss in the tone of 3.8 percent before heading towards recovery.
Although things appear bleak, it is worth noting that foreign investors are considering Brazil’s real estate market because of falling price. The United States is prepared to invest $15.8 billion in commercial real estate. The possibility of large foreign investments gives Brazil real estate agents hope.
While Brazil is on the decline, Mexico’s real estate market is on the rise. The country saw a six percent increase in housing prices during the third quarter of 2015, and there are few signs of the market slowing down.
Much of Mexico’s funds come from resort demand. Many foreign developers cannot get enough of the country’s beachfront, which is why they purchase property in Baja California Sur, Nayarit, and Sinaloa. The United States and Canada are Mexico’s biggest contributors as both corporations and wealthy individuals take full advantage of the dollar when purchasing property.
The Monterrey Metropolitan area is home to some of the more expensive real estate as luxury apartments are on the rise in the region. Mexico City is a favorite for both domestic and foreign buyers because many see the area as the place where tradition and New Age meet.
Still, even with an abundance of land and new homes being built by the month, Mexico is a very competitive market. It is not nearly enough to desire to own a home in one of the country’s beautiful cities. Prospective buyers must act quickly on their intuitions or suffer the sting of defeat when another buyer goes with his impulse and beats hesitant investors to the punch.
Being a real estate agent in Mexico is quite the lucrative career. Foreign investors especially rely on the expertise of native professionals when it comes to selecting the right investment and filing the correct paperwork for ownership.
Columbia is also experiencing its own rise in real estate. The country celebrated another quarter of rising home prices during the earlier part of 2016, and the prospects are great.
House and apartment prices rose by nearly sixteen percent during the first quarter of the year. The country’s most populated cities of Bogota and Medellin certainly benefited from a booming real estate market. Foreign investors are very much interested in the nation’s capital and surrounding cities because of Columbia’s consistent economy. The country’s currency nearly rivals that of the American dollar, which means that an increase in home values in Columbia equals more money in the international sphere.
Although home prices are continuously rising, investors should be aware of the inflation problem that Columbia’s economy faces. Although home prices were up by nearly seven percent during the first quarter of 2016, values went into the negative sphere once adjusted for inflation. While investing in Columbia is ideal, investors should not go into any deal blindly. A skilled real estate agent who is familiar with housing trends in the country is the best option for outsiders looking into Columbia’s real estate market.
Latin America is filled with culture and pride. Buying real estate in Brazil, Colombia, and Mexico comes with benefits and challenges. It is best to seek help from an experienced realtor before taking the plunge into foreign investment.