Brazil’s reversal of fortune has been a boon for South Florida as cash-rich investors put more money into Miami-area bricks and mortar, brokers and real estate observers.
Brazil’s stock market has plunged 23 percent this year, rising inflation has further battered the value of the real to a four-year low and a wave of protests have crippled major cities. Miami leads the U.S. in total investment by international home buyers, and its overseas success exposes its thriving real estate market to changing economic realities abroad.
Government rates of up to 16 percent on money taken out of Brazil – meant to stem capital flight – simply mean Brazilian investors are changing their strategy, favoring real estate they can pay for incrementally, such as pre-construction projects, or that pays for itself, like rental properties.
a Brazilian couple, a $2 million, four-bedroom condo finished and ready for immediate move in. The couple chose instead to buy two pre-construction units and combine them for roughly the same price. “The payment structure was more feasible, with the increments of deposits due over two years.
Brazil is the top country of origin for Miami’s international home buyers, who constituted about 6 out of 10 sales last year.