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4 Keynotes to Look For When Devoting In International Real Estate

By
Real Estate Agent with RE/MAX

When searching for a prospective real estate location overseas, always look foe one of the four schemes that indicate a probable increase in property values.

  • ü  A new path, rising middle class
  • ü  The path of progress
  • ü  Invasion of foreign buyers
  • ü  Distressed or crisis prospects

One of the hottest locations nowadays for real estate openings is Fortaleza, which is located in northeast coast of Brazil. Two schemes can be seen when scouting the place for the first time.

A New Middle Class

New, emerging middle class represents new consumers. New consumers can purchase cappuccinos, refrigerators, vacations, new homes and even second homes. This thing happened in the US in the1950s. owning the condo on these new middle class individuals, vacation homes for them to enjoy, houses of coffee shops where they can sip frothy coffee.

It was last year when Brazil became a middle class country. Car sales were increase 17.9% for the first quarter of this year equivalent of 788,000 units. Domestic budget airlines are becoming popular as this new middle class takes their first flight and holiday. The biggest domestic tourism destination in Brazill is Fortaleza. Brazilians come and visit to stay, drink cocktails on the beach, eating evening meals and some entertainment.

The Path of Progress

Anything that develops the accessibility of a piece of real estate boosts its value. Infrastructures like bridges, airports, rail routes and roads are example of these. Anything that advances amenities in a certain area will eventually improves real estate values such as resorts, theme parks and conference centres.

You can profit by placing your plans ahead of this Path of Progress…

An influx of foreign buyers
Countries such as Nicaragua and Panama with large numbers of foreign buyers pushed property values hastily upwards in a relatively short period of time. The following buyers used equity in their properties back home to finance their overseas property goods. With the global crisis, those buyers have gone and the market that relied on them has suffered.

Distressed or crisis opportunities
Crisis investing denotes buying when everyone wants out. There are no buyers on the ground most of them are afraid. You get to name your price. Argentina experiences the same thing during their financial dilemma in 2001. Now, you are feeling the distressed deals, especially in Europe and the US. Banks are selling units at prices as low as 50 cents on the dollar. Keep in mind while considering this game. Need to focus on quality and refined units.

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