A Guide to Property in South America
From the exotic splendours of the Amazon and the breathtaking views of the Andes to the incredible beaches of Rio de Janeiro, South America appeals to visitors from all over the world. With a growing tourism industry in many of its countries and ever-expanding expatriate communities, this continent is capturing the interest of property investors from all over the world.
South America’s growing and sustainable tourism industry, its emerging real estate markets and the overall stability of many of its countries combines nicely to make this continent worth a close look by investors. We at Nubricks.com cite these 10 reasons as factors boosting investor confidence in property in South America: -
1) Stable Political Atmosphere in Most South American Countries Helps Bolster Investor Confidence
Although the forms of government do tend to vary depending on the country, most governments here involve some type of democratically elected representation. Countries such as Chile and Peru are considered to have quite stable democracies by the British government. The overall stability of the region helps inspire investor confidence and puts holidaymakers, retirees and expats at ease when choosing to come to South America.
2) Very Favourable Exchange Rates in Many South American Countries Really Makes Them Appeal to Investors
Investors in South America will find that exchange rates between European currencies and local monies tend to favour the Europeans hands down. This is incredibly good news for investors, holidaymakers and expats. The exchange rates are one of the driving factors making many retirees consider South American countries. In Peru for example, a single British pound is worth about six nuevo sols. The favourable exchange rates ensure that European money stretches far, which is quite good for investors.
3) Growing Economies in South America Give Investors Promise for Future Returns
The economic picture in South America tends to be rather diverse, ranging from country to country. The continent has its share of very stable economies and those that are starting to become stable and grow. Colombia, for example, has had more than its share of rough patches, but recent programmes have turned this economy around for the better. The British Foreign & Commonwealth Office estimates the GDP at USD 129.4 billion. Growth here is around 5% per annum and is outpacing inflation. The interesting blending of economies makes South America appeal to investors of all kinds. From very high-risk locales to virtually no-risk buys, the continent has them all.
4) Growing Tourism to South America Bodes Well for Investors Interested in Buy-to-Let Potential from Real Estate
Tourism is a very big industry for almost every South American country. With low-cost travel available from North America via both cruise and airlines and reasonable airfares from Europe, the tourism industry here tends to stay hopping year-round. Brazil for example enjoys 1.1% of the world’s entire market share for tourism demand according to the World Travel & Tourism Council. The country’s demand is anticipated to grow by a very healthy 5.3% per annum through to 2017 as well. The tourism industry is a very strong factor in boosting the real estate markets in South America and boosting investor confidence as well.
5) South American Weather Patterns Appeal to Holidaymakers, Making Investors Here Happy
Whilst there are a few regions that do in fact see some snow, South America on the whole enjoys very warm, year-round temperatures. With thousands of kilometres of oceanfront property and some incredible outdoor activities awaiting holidaymakers, retirees and expats, the weather is a major selling point for investors and visitors alike. This is very good news for investors who want to cater to holidaymakers and retirees with their purchases.
6) A Combination of Established and Emerging Markets in South America Lends itself to Many Different Property Investment Strategies
South America boasts a combination of rather well established real estate markets and those that are emerging. Areas such as Brazil, Argentina and Chile tend to offer the most stability, but investors often find the emerging markets are very interesting in regard to their potential. As travel becomes more open and affordable to South America, and more expats move to take advantage of lower costs of living, investors are paying close attention to the markets in this entire continent. From Colombia and Venezuela to Ecuador and Peru, each of the countries on this continent offers a fair amount of potential. Investors in South America will find there are regions just right for any type of strategy.
7) South American Real Estate Tends to Offer Very Low Buy-In Prices, Appealing to Investors From All Over the World
Buying property in South America is generally considered quite affordable. Whilst buy-in prices do vary between the many countries and their individual regions, investors will find that resort purchases fall in at well under GBP 100,000 in most areas. In fact, it is quite possible to find buys around GBP 40,000 for one-bedroom flats in Brazilian resort areas, for example. The low purchase prices and the room for growth that South America offers appeals to investors from all over the world. Markets in Chile, Argentina and Brazil tend to offer more proven records, but other countries are emerging quite prominently as well.
8) Incredible South American Geography Appeals to Holidaymakers, Retirees and Property Investors
South American geography varies greatly depending on the country in question. The continent includes coastlines on both the Pacific and Atlantic oceans. Landscapes here range from very flat and arid in East Patagonia and the Atacama Desert to very mountainous in the Andes. Some of the geographical features that very much appeal to holidaymakers, expats and retirees include the tropical rainforests of the Amazon River, the terraced shelves of the Andes and the beauty of Angel Falls and Lake Titicaca. The climates here range from year-round hot to almost continental. High in the Andes, snow and cold temperatures are a factor on virtually a daily basis. This diversity is very appealing to holidaymakers and expats, which is always good news for investors.
9) Historic Sites, Natural Wonders, Outdoor Adventures Await Holidaymakers, Expats and Retirees, Making South America Massively Popular with Investors
South America holds within it boundaries many incredible wonders that holidaymakers, expats and retirees flock to see. From the incredible Andes mountains and their historic sites that date back to the Incans to the incredible style of Rio de Janeiro, and the wonders of the Amazon to the flavours of Chile, South America has a lot to offer visitors and expats from other countries. The countries of South America collectively offer tons of sightseeing opportunities, lots of high adventure potential and cultural experiences like nowhere else in the world. The incredible attractions keep interest in this continent high, which is always welcoming news to investors with buy-to-let and resale potential strategies in mind.
10) Low Cost of Living is Attracting More Retirees and Expats, Boosting Overall Property Investor Confidence
Whilst it is important to note that cost of living does vary from country to country in South America, many retirees and expatriates are enjoying a rather high standard of living on a very low budget. Expats in Argentina for example, report getting by quite well on budgets of only a few hundred euros a month. Add to this the growing number of retirees and expats from European countries, such as the UK, and the atmosphere is very appealing. The natural attractions for expats and retirees who are looking to purchase or let is very good news for investors.
With its incredible coastlines, wonderful mountain ranges, exotic rivers and rainforests, South America is appealing to property investors in a very big way. A s the markets here continue to emerge and grow, investors are finding the potential in many regions is high.
