****Please note we cannot currently quote for insurance in Brazil****
Holiday Home Insurance Brazil. The purchase of a holiday home or second home in Brazil is only now beginning to take off, property prices remain on the low size but as airfares, seem to be dropping all the time this is encouraging more and more Europeans to invest in the country. In fact, Brazil seems to be becoming more popular almost on weekly basis. There has been a large amount of positive information in the press, magazines and on specialist property investment television stations, all over people in the United Kingdom are discussing the merits of buying in the country. Until very recently, Brazil was associated with much negative sentiment and certainly not the place an overseas investor would like to spend money. This notion is changing rapidly, Brazil has made a commitment to fiscal and political overhaul, and is taking great steps to promote the nation as a desirable and safe place to visit, invest, do business and live. Land and property are cheap and the scenery is beautiful
The Holiday Home Market in Brazil – Statistics have recently revealed that travel and tourism in the country is growing at a very fast rate and with it the demand for quality holiday home property, during 2007 it has grown at a rate of 7.2% – almost 3% higher than the global average increase – and that for the next decade this increasing intensity of demand is expected to remain exceptionally strong. Although home prices remain low compared to European standards, they are being fuelled by the influx of overseas residential and commercial investors, multinational corporations and property developers who are all keen to latch on to the Brazil success story. Probably what most people do not realise is that insurance for your holiday home or second home in Brazil is available from the United Kingdom in a policy wording that is written in English and will cover a wide range of insurance including property owners liability Insurance. If you are going to rent your property our, making sure you have adequate insurance protection is essential. Further, If you decide to let your property, then make sure you ask a solicitor with local knowledge if there are any special rules and regulations relating to letting property to tenants.
Why Invest in Brazil – Brazil, is a giant of a country, it covers nearly half of South America and is the continent’s largest nation, historically, it is the only country in South America that derives it’s language and culture from Portugal. It borders every nation on the continent except Chile and Ecuador and is the fifth largest country in the world, behind Russia, China, and the U.S.A. This massive diverse country has an area of eight and a half million square kilometres. Geographically, Brazil Brazil may be divided into the Brazilian Highlands, or plateau, in the south and the Amazon River Basin in the north. The dominant feature of the country is the Amazon river and it’s more than 200 tributaries. The Amazon is navigable for ocean boats to Iquitos, Peru, some 3,700 km upriver. Even though, this is a country of vast proportions, most of it’s population is concentrated in the major cities located on the coast. The vast urban areas of Rio de Janeiro and Sao Paulo dominate the southern coast. On the north, towns such as Salvador and João Pessoa have managed to keep the old style colonial feel and are well worth a visit. As far as property investment goes, is the northeast of the country that seem to be receiving the bulk of the attention, in recent years, it has become far more accessible, it is able to boast low crime levels and you don’t need to study too many photos to understand why is highly desirable as a holiday location, thankfully, there is lots of property on sale. Climatically the winter lasts from June until August and summer is considered to be between December & February.
Buying Property in Brazil – Like most other countries, property in Brazil is mainly purchased via an agent and you should of course obtain your own independent solicitor who can advise you on the procedure. Before you will be allowed to buy property, you will need a Brazilian identity card called a CPF. To obtain this document, you will need your birth certificate to be translated into Portuguese by a certified translator and legalized by the Brazilian Consulate in your home country. This will then need to be taken to the Banco De Brazil with your passport and birth certificate in order to formally apply for the document. There is a small charge for this service and it is usually very quick. Initially a verbal offer to buy is made and as the bulk of property being sold at the moment is new build, you should enquire from the developer as to the exact procedure. You will find that in many cases it varies from developer to developer. As far as legal costs go, they are fairly reasonable and shouldn’t set you back more than a £1000.00. Remember to budget for the on going costs of Brazilian holiday home insurance. For his or her money, your solicitor should check a number of things including the following;
- That the current owners has the correct title to the property being sold.
- Will perform checks to see if there are any charges and liabilities outstanding on the property
- Check the contract and be able to advise on the obligations for both parties.
- Provide you with assistance to transfer the payment funding.
- Oversee the registering of the property in your name.
- Related purchase cost will vary from region to region but expect between 3 & 7% to be normal