Strength of pound makes property in Brazil cheaper
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 you’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 ‘if you bought a five star two bedroom beachfront apartment south of Natal on 01 June 2011 it would have cost £111,617 - but now the cost is £90,564’.
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: “The 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.”
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 you’ll avoid any nasty surprises if the Real were to strengthen over coming months.