Since the acronym was coined in a Goldman Sachs economics report in 2001, the BRIC (Brazil, Russia, India and China) economies have enjoyed the limelight of the developing world, repeatedly predicted to become the most dominant countries in the world by 2050. Even without the luxury of a crystal ball, it is easy to see where the optimism and economic expectations for the largest South American country have arisen from; the International Monetary Fund expects the country to grow by 4.4 per cent and 4.1 per cent in 2007 and 2008 respectively, and the investment case for Brazil is strengthening.Brazil is the fifth largest country in the world – it shares a border with almost every other country in South America--only Chile and Ecuador are untouched—and the country covers almost half the continent with an area of eight and a half million square kilometres.

Brazil continues to pursue industrial and agricultural growth and development of its interior. Exploiting vast natural resources and a large labour pool, it is today South America's leading economic power.

As a country,  it has a huge amount to offer, yet is often overlooked as a tourist destination. There are over 7000 kilometres of amazing coastline and some truly spectacular nature reserves. The cities are vibrant & exciting and the people polite, friendly and helpful. The sun shines virtually twelve months of the year and there are no wars, earthquakes, hurricanes or tidal waves that we see in other parts of the world.

In addition to all the above the cost of living can be as little as 20% of that the UK, allowing visiting Europeans to lead a very good life. In support of the significant investments being made into Brazil and Brazilian property by overseas investors, the Brazilian Minister of Finance, Guido Mantega recently reconfirmed his government’s economic position. He stated that the Brazilian currency is strong, that the country is secure with a solid trade surplus and that because Brazil has significant reserves of US dollars any international fluctuations in currency markets or any general international market turbulence would be unlikely to negatively impact Brazil. This announcement has given international companies, institutional investors and individual investors greater confidence in the Brazilian property market.

The final important information to impart in this article relates to Brazil’s status and position on the global economic stage. Brazil is becoming a significant exporter, a prolific promoter of its assets and wares and it is a nation expanding internationally, presenting a strong economic picture to the wider world and encouraging international investment through strategic entry into retail and export/import markets in Germany, America and Portugal in particular. Furthermore, the Brazilian Minister of Development, Industry and Foreign Trade is working with international ministries of economy and innovation to spread the word about the diversity of natural and manufactured resources available in Brazil which will increase exports from Brazil, further strengthen the economy, lead to increases in the wealth of the people of Brazil and lead to the overall economic advancement of the country - all good news for those researching and searching for news about Brazilian property and the facts driving its potential profitability.

You do need to recognise that Brazil is an emerging economy and comes with its share of legal and political risk. Most new builds are full title but there are peculiarities of ownership that should be checked with PeregrineLaw. For example, you may want to know who has ownership of the communal areas if there is potential for development around the complex. Building standards are good but don’t expect the luxury marble penthouses of Dubai and Bali. Don’t expect English to be that easily understood.

Fees and taxes: Budget 10% of the purchase price for this but contact your representative at PeregrineLaw for a comprehensive quote.