Brazilians Buy Miami Condos at Bargain Prices

Another sign that the Mania is not over yet... Chinese are buying properties all over the world, but they are not the only ones. Brazilians want a piece of the cake too!

One thing I can't dismiss, and I can actually recommend, is to divest off their local highly inflated local currency and avoid buying at the top of the bubble on their local markets, and actually buy in the US where prices have dropped 50%.
(Bloomberg) — Frederico Azevedo went to Florida looking for a second home. He left with three, paying $300,000 and $500,000 for condos in two Miami towers, and $1 million for a unit at the Trump International resort in nearby Sunny Isles.

“I bought one to use as a vacation home and the other two as investments,” Azevedo, 39, president of Construtora Altana Ltda, a housing-development company, said in a telephone interview from his office in Sao Paulo. “It’s actually very cheap in Miami compared to here.”

Surging real estate prices in Brazil and the currency’s 45 percent gain against the U.S. dollar since 2008 are sending Brazilians to South Florida in search of bargain vacation homes and property investments. That’s helping bolster Miami’s condo market, with total sales increasing 92 percent in the first four months of 2011 from a year earlier, according to data from the Florida Association of Realtors.

In the Miami area, Brazilians bought 9 percent of homes and apartments sold to international buyers in the 12 months through March 2010, behind only Canadians and Venezuelans, according to the Miami Association of Realtors. Since then, “anecdotal evidence certainly points to a significant increase,” said Lynda Fernandez, a spokeswoman for the group.

As many as half of the downtown Miami condos that have been sold to foreigners for more than $500,000 since January were purchased by Brazilians, said Craig Studnicky, president of International Sales Group LLC, an Aventura, Florida, property- marketing firm. Buyers from Brazil also accounted for about half of sales of more than $1 million in Miami Beach.


Dave Narby said...

For their sakes, I hope they are cash buyers. Haha.

pej said...

Another very good point.
I was implying this, but it is not obvious that this is what they are doing indeed.