WHY INVESTING IN BEACHFRONT PROPERTIES IN BRAZIL IS A GOOD IDEA

Jessica Sturzenegger
Dec 11, 2020
2 min read

Updated: Feb 6, 2021

“The major fortunes in America have been made in real estate.” John D. Rockefeller

Investing in real estate has always been an attractive, profitable and relatively safe way to generate a passive income. But it is getting harder and harder to find world-class property worth owning especially if you are looking for a beachfront location.

Beachfront properties always come at a premium price. It is hard to believe but amazing beachfront properties are still available in Brazil for a much affordable price that you can get somewhere else for the same quality standards. Beachfront, not beach side, or beach view… In a country that is famous worldwide for its beaches.

If you are looking at a turnkey real estate investment, providing hassle-free rental income, there has never been a better time to invest in Brazil.

The Brazilian real significantly weakened and lost almost 40% to the US dollar, euro and pound since January 2020. This favourable exchange rate makes investment in Brazil even more appealing to foreign investors.

And the real is expected to bounce back within the next months, meaning your revenues in local currency will also increase.

In addition, due to the economic downturn in Brazil, real estate properties are currently undervalued. But beach properties will soon start to appreciate as the trends in the market are changing. Since Covid, the demand for second homes started to increase driving up property values and more demand for vacation rentals.

The Brazilian short-term rental market starts to recover and is expected to be less affected than others by Covid and the decline of travel. Brazil's fast growing middle-class is willing to spend a decent amount for beach holidays in their favourite holiday spot. So since Brazil is not totally reliant on the international market for tourism, short-term rental income will most likely not be affected.

Since the lifting of lockdown, Brazilians have shown a preference for national holiday getting out into nature. Destinations offering open spaces in the fresh air have soared in popularity as holiday-makers look to get away from cities and crowds -> high rentability and increasing your return.

Taking an extended trip is a travel trend that’s predicted in the post-pandemic world.

Condé Nast Traveller writes:

“Travellers will probably stay abroad for longer periods and even take exotic sabbaticals, and modest mini-breaks will be swapped for blowout bonanzas.”

What’s better than doing a staycation in your own stylish sanctuary, away from the crowd on a quiet coast. Providing privacy, space and safety.

With expert property management onsite, your investment will be professionally managed ensuring high occupancy rate and high return. And you can still use your property for up to 4 weeks per year.