An Investor’s Property Investment

If you’re looking for the romantic Brazilian dream of gently shelving beaches and endless miles of coastline on which to enjoy the sunshine and sip cocktails, then investing in a city such as Joinville, probably isn’t the right type of project for you.

This is an investor’s investment, which ticks all the right boxes at a macro, regional and micro level. It has solid rental returns, backed by the security of an innovative insurance policy that I was really surprised to find on the market in Brazil.

The developer, with whom I had the good fortune to spend a couple of days in Joinville and again recently in London, has a refreshingly flexible mentality and is really committed to providing a product that works for investors as well as meeting the needs of the local rental market. But the real potential for this project is in the capital growth…

Much as I honestly love the beach resorts in the North East of Brazil, they are unlikely to be the first places to benefit from the rising wealth and greater purchasing power of the domestic market. The first steps towards a new life of moderate affluence for a big chunk of the 180 million or so population will be the first time ownership of their own apartment – the property of choice for most urban Brazilians.

Falling mortgage rates are making the current housing stock much more affordable for most ordinary Brazilians, who are also seeing wages rise and more, better paid jobs being created in the service sectors.

The impact on the demand for second homes will be felt, but in the short term at least, a much greater number of Brazilians will be looking to move up the housing ladder than will be in the market for a holiday home on the coast. So residential property looks like a smarter bet to make faster returns from the domestic market.

Getting to Joinville is not particularly easy, which is probably why we are the only UK agent currently marketing properties there. I managed to get a direct flight from Buenos Aires to Florianopolis on the way there and flew on to Uruguay from Curitiba. Joinville does have its own airport, but it is currently used mainly for internal flights, with a limited schedule of external flights to major cities in South America.

Joinville is a working, thriving city that’s clean, well maintained and spacious. Throughout its low rise streets, there are signs everywhere of rising wealth – car dealerships, electrical stores, supermarkets and new office buildings. It may not be the most picturesque town on earth, but it’s a flagship city for the new Brazil – a serious place, suitable for serious investors looking for serious financial returns from an investment.

E-Quity are currently marketing a range of 2 and 3 bedroom buy to let apartments in Joinville, starting from around £33,500, up to approximately £39,750.

News submitted by Dan Johnson, E-Quity