Latin America: Worth a Gamble?
Following the turbulent financial market and lack of liquidity for property finance markets, TheMovechannel.com assesses the potential of the Latin American property market, when buyers are more cautious than ever before shelling out on an investment.
[UKPRwire, Wed Oct 01 2008] Following the turbulent financial market and lack of liquidity for property finance markets, TheMovechannel.com assesses the potential of the Latin American property market, when buyers are more cautious than ever before shelling out on an investment. However, Latin America, an area known for wars, coups and government corruption, is now attracting a number of shrewd investors. TheMoveChannel.com asks… is it worth a flutter in Latin America, or when the chips are down are the odds too great?
Cause for Concern
Real estate investors seeking safer property havens for their capital in these troubled times, may not have contemplated Latin America - until now.
With a history of hyper-inflation, coups, dictatorships, corruption, drug lords, kidnapping and social disparity, it has not always been the most suitable area of the world in which to purchase property.
But the region’s growing economies, recent political stability and an increase in tourism, mean that savvy investors are snapping up homes there, from holiday villas on Uruguay’s beaches to high-rise flats in Panama and Mexico
Latin America is high on glamour but low on costs - a luxurious lifestyle at half the price - the perfect cocktail for any would-be investor.
There are definitely bargains to be had; for just £27,000 you can buy a stylish flat near the beach in Brazil or an apartment in central Buenos Aires. Yet concerns exist that over development and unrealistic sales targets can often lead to poor-quality construction and a surplus of unsold property.
Globalization is lifting Latin America to lofty heights and the reward for sound economic policies is evident.
The devaluation of the local currency for countries such as Argentina and Uruguay forced them to have an economic overhaul, which ultimately gave them a more stable economy.
Peru has generated 9% growth at least partly by imitating Chile’s budget restraint and free-market reforms. Colombia’s success on terror and sound macro-management has bought huge pay-offs in company profitability, capital investment, and exports. In Panama, the government is enlarging the canal and creating a Dubai-like off-shore-centre.
A Place to Rest
There is an increase in the amount of retirees that head towards Latin American destinations, particularly from the US, where many look to retire to Mexico, Costa Rica, Belize, and Panama.
Dan Johnson, Managing Director, comments:
“But be cautious of the possibility of some inexperienced developers looking to entice foreign investors with portentous promises and inverted incentives. Potential buyers need to be cautious and research the sites and companies they could be dealing with.”
For more information on Brazil Property in general please visit http://brazil.themovechannel.com/ or visit the www.themovechannel.com for information on other South American property markets.
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Notes to editors:
TheMoveChannel.com is a property website that was founded in 1999 as an online resource for buying, selling and learning about property. It now receives as many as 300,000 visits per month and advertises over 50,000 properties in nearly 90 countries, which are listed by over 500 partner organisations.
For further information as well as images and interview possibilities, please contact:
0207 952 7650