Property in Brazil is becoming
even more affordable to British buyers thanks to the strength of the
pound. Sterling is currently
trading at a two and a half year high against the Brazilian Real, making it
much cheaper to buy a property in the South American country than it has been
over recent years.
Keep reading to learn more about
why changes in the exchange rate are great news if youââ¬â¢re a Brit looking to buy
in Brazil.
Strength of pound
great news for Brits buying property in Brazil
Property Wire gives an example
of how the strength of the pound against the Brazilian Real has made property
in the country cheaper for British buyers.
They report that ââ¬Ëif you bought a five
star two bedroom beachfront apartment south of Natal on 01 June 2011 it would
have cost ã111,617 – but now the cost is ã90,564ââ¬â¢.
The Real has lost around a quarter of its
value against the pound in the last year and is also at a two year low against
the US dollar and the Euro.
Brazilian Finance Minister Guido Mantega
is pleased that the Real is losing value and therefore becoming more
competitive. He recently said: ââ¬ÅThe weak real is beneficial for the Brazilian
economy because it makes Brazilian products more competitive, which means that
Brazilian industry can better compete with imported products that become more
expensive, and can export more.ââ¬Â
If you are thinking of buying a
property in Brazil and taking advantage of this improvement in the exchange
rate, some experts recommend that you use a currency broker.
Volatile exchange rates can suddenly
mean that your overseas property is more expensive than you expected it to be.
So, if you want to buy a property
in Brazil and take advantage of the favourable exchange rate, using a currency
broker can be a great idea. They
can help you fix your exchange rate at the current levels for up to a year. This lets you benefit from the current
exchange rate and mean youââ¬â¢ll avoid any nasty surprises if the Real were to
strengthen over coming months.
Author : Nick
Marr
