"Flying Down to Rio"

By Estela Lopez of Project Pegasus Inc

Brazil is fast becoming one of the best options for international investment. Diversity and vastness are its main features, besides its really low prices, compared to the global market. With the upcoming 2014 FIFA World Cup, and 2016 Summer Olympics hosted in Rio, Brazil is poised for a potential property boom.

Danilo Canuto, executive director of the Association for Real Estate and Tourism Development (ADIT), told the Brazil Investment Guide that a total of 50 billion AUS (32 billion GBP) of projects have been planned for 12 key cities hosting events in the 2014 football World Cup and the 2016 Olympic Games. The Brazilian government is concentrating on spending 6.2 billion reais (2.2 billion GBP) on modernising the country's ports and airport ahead of the World Cup and Olympics. Such improvements to infrastructure should provide huge growth potential.

When comparing a property in Europe, with another one with exactly the same features in Latin America, we can talk about huge price differences, in some instances even ten times cheaper. Add to that, cost of living is a fraction of what it is in Europe and the UK. Also consider terrorism and environmental issues are just some of the reasons to see the whole of Latin America as one of the safest options in the world. If those reasons aren’t enough for you, consider the fact that investment brokers Goldman Sachs, have identified Brazil as one of the big four emerging economies, which include Russia, India, and China. The Brazilian economy has been reporting positive growth with 83% last year, inflation is at an all time low 5.7%.

In our last report “The South American Dream”, we mentioned the thriving agricultural industry, now add the growing manufacturing industries, and reports that Brazil will soon be self sufficient in oil. Really? Yes, the country that pioneered fossil fuel alternatives, in particular, ethanol, is on the verge of an energy milestone. Brazil has announced that by next year it expects to be self-sufficient in oil. Oil now makes up just 30 percent of the country's energy sector. The flex-fuel system allows cars to run on gasoline, ethanol or a mixture of the two in the same tank. Brazil has long been a leader in producing cars that run on ethanol made from sugar cane. With encouragement from the Brazilian government, carmakers in South America's largest country have been producing ethanol-powered vehicles since the late 1970s.

In a nutshell Investors looking towards Brazil should move fairly quickly if they want to see the most significant returns for their investment. Early investors are already seeing excellent returns in hot-spot areas as high as 20%. Here are just a few more reasons why savvy investors will definitely be “Flying down to Rio” as the Mike Nesmith song says.

• Amazing climate, year-round sunshine.
• Spectacular rainforests
• Natural beauty with fantastic scenery
• Breathtaking coastline 7,491km
• Vibrant cities with carnivals and music.
• Low international risk of war, terrorism or SARS in Brazil.
• Proximity to other vibrant cultural and resort locations in South America
• Easy access via direct flights from many international airports