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As you may already know if you are reading this the property investment market in Brazil is a hot topic and has been predicted for increasing capital growth and goo rental income. in fact some properties in the northeast have increased in value by one hundred percent in the past 3 years. This is due to the strong economic growth and increased exposure, investment and development of the touristic investment property industry.

Brazil also offers an excellent range of holiday homes for people looking for a place in the sun or to enjoy the excellent culture and carnival celebrations.

This is just a few of the many reason why Brazil property is increasing in popularity with foreign buyers and investors.

A growing number of international property developers are now building a selection of different resorts in the northeast of the country and especially near Natal the capital city of Rio Grande do Norte.

We are already seeing a growing number of foreign property buyers purchasing Brazil investment property already but in our opinion the only thing holding the market back is the fact that mortgages for foreign buyers is non-existent , however because of the potential of the market we believe that mortgages will be available soon.

In our opinion the clever property investors with the cash available are buying now and are set to make good returns as soon as the mortgages are international and foreign property investors and second home buyers.

The mortgage market is to say the least well under-developed. Some mortgages products were released and around 50,000 mortgages were granted for Brazilians in 2005, however these had high interest rates. Housing is a big issue for the majority of the Brazilian population and the government and banks know they need to make mortgages available to help economic growth and the quality of living for Brazilian people.

We are predicting that the Banks will increase the availability of mortgage products to both the Brazilian people and foreign nationals very soon because of the growth demand and quality Brazil investment property being built with the foreign buyer in mind.
At the moment as far as well know (Sep 2008) the only option for foreign nationals looking to purchase Brazil properties is to arrange alternative finance like equity release for there property in the UK for example.
We predict that as soon as mortgages become available for foreign investors buying in Brazil the property market is sure to become more accessible and attractive and a growing number of people will be purchasing meaning the value of properties will increase and the people who have already purchased should see good capital growth.