Yeah, just like a bubble, right?
You see, since a large cache of oil was found off shore in Brazilian waters and China has an insatiable appetite for Brazilian commodities, the economy in brazil is booming.
So let me give you a some insight into how they are taking advantage of their good fortune:
1. Property owners are fast becoming landlords and the rents are rising at a rate that would make Jimmy McMillan freak.
A formerly modest apartment in Jardins (think Manhattan) use to go for about $3000 per month. Now you cannot touch an apartment in Jardins for less than $20,000.
2. Because of the resurgence of the Brazilian currency (the Real) hedge fund managers and venture capitalists are crowding the market as they are seeking investment opportunities and limited partnership members.
3. The price of homes has been inflated and is in a runaway upward trend.
4. Access to credit is plentiful and is spurring the buying. This is counter to the traditional Brazilian approach wherein little credit is used.
And what happens? That’s right, you know…don’t you?
Turn your best ear toward the south and wait for it…the pop you’re soon to hear is São Paulo.
Appraisal Source is a New York based residential real estate appraisal firm. Their highly-qualified appraisal staff of New York City and Long Island real estate appraisers provide independent residential real estate appraisals for a variety of purposes.
Here’s the original article…Brazil Makes Its Own Manhattan