South America
Property Market in South America
South America is the fourth largest continent. It is the southern of the two continents of the Western Hemisphere. It is divided politically into 12 independent countries - Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Peru, Suriname, Uruguay, and Venezuela—and the overseas department of French Guiana. The continent extends c.4,750 mi (7,640 km) from Punta Gallinas, Colombia, in the north to Cape Horn, Chile, in the south. South America natural resources include copper, iron ore, tin, and oil. The many resources in South America have become useful around the world, but they have failed to diversify their economies. This has lead to major highs and lows in the South American country economies.
In South America, the gap between the rich and the poor is tremendous. In Venezuela, Paraguay, Brazil, and many other South American countries, the richest 20 % may own over 60 % of the nation's wealth, while the poorest 20 % may own less than 5 %. This wide gap can be seen in many large South American cities where makeshift shacks and slums lie next to skyscrapers and upper-class luxury apartments.
Since Brazil’s new administration took office in 2003 the government has succeeded in creating an economy ripe for foreign property investor interest and promoting a fiscal and political environment conducive to growth.
These factors alone mean that the property sector in Brazil has become far more attractive to overseas property investor interest and as international tourism numbers increase and retirement communities are established in Brazil, so the breadth of opportunity for property investment is widening.
Local and international confidence in the Brazilian administration has grown rapidly since 2003 and this confidence has been based upon the government’s sustained and so far successful policies to create a far more resilient economy with reduced inflation a stable currency and strong export performance.
The capital of Chile, Santiago is the lively and pulsing nerve center for a country that enjoys a reputation of having Latin America's strongest economy, one of the lowest levels of corruption, and highest standard of living.
Since 2002, huge infrastructure projects have been completed in record time, leaving the city with a set of fast and efficient freeway tunnels, as well as an ever-expanding metro subway service, both of which would be the envy of any modern capital city in the world.
The property market is booming here, too - Chileans can now get a mortgage to buy a second home, fueling a countrywide second-home market.
During the last 5 years, Ecuador has gone through a number of tumultuous changes, including the recent ousting of a president in 2005. But today's Ecuador has emerged is a comparatively popular destination for those wanting to retire or invest in properties and gives every sign of retaining a stable government. The landscape of the property market has changed, but there are still some areas where property bargains can be found and a comfortable lifestyle can be enjoyed on just a fraction of what you'd spend in much of the world.
Ecuador survived the Latin American financial meltdown of 2002, in part because of a stability factor that came from adopting the US dollar as the official currency. The formerly high inflation rate came in at 3.9% in 2004, same in 2005 and it's on track to be about the same in 2006. There are no foreign-exchange controls and no restrictions on foreign-owned businesses.
Argentina is seeing a boom too. The country's economic crisis in 2001-02 led to a strong decline in property prices. At the same time, the euro has appreciated against the Argentina peso, leading to bargain conditions for European investors. The result: a boom in residential property, especially from Spanish buyers.
Due to histories of high inflation in nearly all South American countries, interest rates and thus investment in property remains high and low, respectively. Interest rates are usually double that of the United States. For example, interest rates are about 22 % in Venezuela and 23 % in Suriname. The exception is Chile, which had a head start from 1973 under Augusto Pinochet.
South America is the fourth largest continent. It is the southern of the two continents of the Western Hemisphere. It is divided politically into 12 independent countries - Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Peru, Suriname, Uruguay, and Venezuela—and the overseas department of French Guiana. The continent extends c.4,750 mi (7,640 km) from Punta Gallinas, Colombia, in the north to Cape Horn, Chile, in the south. South America natural resources include copper, iron ore, tin, and oil. The many resources in South America have become useful around the world, but they have failed to diversify their economies. This has lead to major highs and lows in the South American country economies.
In South America, the gap between the rich and the poor is tremendous. In Venezuela, Paraguay, Brazil, and many other South American countries, the richest 20 % may own over 60 % of the nation's wealth, while the poorest 20 % may own less than 5 %. This wide gap can be seen in many large South American cities where makeshift shacks and slums lie next to skyscrapers and upper-class luxury apartments.
Since Brazil’s new administration took office in 2003 the government has succeeded in creating an economy ripe for foreign property investor interest and promoting a fiscal and political environment conducive to growth.
These factors alone mean that the property sector in Brazil has become far more attractive to overseas property investor interest and as international tourism numbers increase and retirement communities are established in Brazil, so the breadth of opportunity for property investment is widening.
Local and international confidence in the Brazilian administration has grown rapidly since 2003 and this confidence has been based upon the government’s sustained and so far successful policies to create a far more resilient economy with reduced inflation a stable currency and strong export performance.
The capital of Chile, Santiago is the lively and pulsing nerve center for a country that enjoys a reputation of having Latin America's strongest economy, one of the lowest levels of corruption, and highest standard of living.
Since 2002, huge infrastructure projects have been completed in record time, leaving the city with a set of fast and efficient freeway tunnels, as well as an ever-expanding metro subway service, both of which would be the envy of any modern capital city in the world.
The property market is booming here, too - Chileans can now get a mortgage to buy a second home, fueling a countrywide second-home market.
During the last 5 years, Ecuador has gone through a number of tumultuous changes, including the recent ousting of a president in 2005. But today's Ecuador has emerged is a comparatively popular destination for those wanting to retire or invest in properties and gives every sign of retaining a stable government. The landscape of the property market has changed, but there are still some areas where property bargains can be found and a comfortable lifestyle can be enjoyed on just a fraction of what you'd spend in much of the world.
Ecuador survived the Latin American financial meltdown of 2002, in part because of a stability factor that came from adopting the US dollar as the official currency. The formerly high inflation rate came in at 3.9% in 2004, same in 2005 and it's on track to be about the same in 2006. There are no foreign-exchange controls and no restrictions on foreign-owned businesses.
Argentina is seeing a boom too. The country's economic crisis in 2001-02 led to a strong decline in property prices. At the same time, the euro has appreciated against the Argentina peso, leading to bargain conditions for European investors. The result: a boom in residential property, especially from Spanish buyers.
Due to histories of high inflation in nearly all South American countries, interest rates and thus investment in property remains high and low, respectively. Interest rates are usually double that of the United States. For example, interest rates are about 22 % in Venezuela and 23 % in Suriname. The exception is Chile, which had a head start from 1973 under Augusto Pinochet.
