Brazil is the world’s seventh-largest economy and shows no signs of slowing down. A delegation from the Florida Realtors spearheaded by Florida Governor Rick Scott visited Brazil in October to discuss real estate investment opportunities for Brazilians living or vacationing in Florida. Brazil is Florida’s primary trading partner with exports surpassing $13.7 billion in 2010. Brazilians made up 8 percent of foreign Florida buyers in 2010-2011 and as Brazil continues to prosper these citizens will continue to seek out places to invest, Patricia Fitzgerald, president of Florida Realtors stated.
“Brazilians love owning a home in Florida for a variety of reasons, from the home prices to shopping and even traveling to Florida is very affordable for Brazilians today. They see the entire state, from Key West to the Panhandle as not just a place to be but a place to buy”
What types of homes do Brazilians purchase?
In 2011 thirty-nine percent (39%) of foreign buyers purchased a detached single-family home in the U.S as compared to fifty-one (51%) in 2010. In comparison, fifty-three percent (53%) of Brazilians choose to purchase condos while thirty-four percent (34%) selected detached single family homes.
How much do Brazilians spend on property in Florida?
Volatility in the U.S. housing market spawned by the troubled economy and foreclosures makes purchasing property in Florida an attractive option for foreign buyers. A majority of Brazilian buyers spend more than $ 200,000 for a home in Florida. The median price purchased by Brazilians was $ 215,000 higher than the median of price of $ 174,700 noted for all other foreign buyers.
Brazil — Price of Homes Purchased
30% – $99,999 or less
17% – $100,000 or $199,999
21% – $200,000 to $299,999
9% – $300,000 to $399,999
0% – $400,000 to $499,999
13% – $500,000 to $749,999
9% – $750,000 to $999,999
2% – $1,000,000 or more
*Median Purchase Price $215,000
Do Brazilians purchase property in Florida as a rental investment?
While Brazilian buyers believe that purchasing property in Florida is a good investment, a significant number of owners intend to use this property as a vacation home for less than six months a year. Brazilians do purchase with the possibility of renting their vacation home when not in use but at the onset they seek a home in Florida that they can enjoy with their friends and family.
Brazil — Intended Use of Home
17% – Rental Property for Investment
47% – Vacation home for family and friends
23% – Both
9% – Retirement home
4% – Don’t know
How do Brazilian purchasing trends fit into the U.S. market?
Our Miami based real estate colleagues can attest to the stampede with some brokers claiming up to a quarter of all new sales being for Brazilian clients. Brazilians who choose property for themselves gravitate towards beachfront properties while those who see their purchase in Florida as an investment choose urban locations. Regardless of location Brazilian buyers are primarily purchasing condominiums with cash funds which have helped to keep inventory levels from further spiraling out of control. Lending restrictions on condominiums in the U.S. have come under severe scrutiny by the banks impeding many American buyers from purchasing due to financing limitations.
Brazil — Financing the Home Purchase
85% – All cash (no mortgage financing)
15% – With mortgage financing
The sheer number of Brazilians who are happy to invest their private capital in real estate gives a whole new meaning to the dame- dos ( give me two) phenomenon that began by Venezuelan buyers during the oil boom years.
Source: NAR Florida International Survey. 08/2011
The complete survey by NAR is available by the following link.