Mortgages for foreign property investors in Brazil expected within the next 12 months
The government and property industry in Brazil is putting pressure on the countries banks to offer financing options to foreign investors who want a mortgage to buy real estate.
Although buying off-plan is common in Brazil and foreign buyers who live and work in Brazil can obtain a mortgage, international investors currently find it hard to obtain finance from Brazilian lenders.
It is a situation that needs to change, according to Laercio de Souza, general co-ordinator for investment promotion at the Ministry of Tourism, and a former banker.
He said that extensive negotiations are taking place with officials and he is confident that mortgages will be available to foreign real estate investors within the next 12 months
‘Although in theory the Central Bank allows foreign investors to have access to finance in practice it does not really happen,’ he told Property Wire.
‘In some rare circumstances, for example when a foreign buyer already has an account with an international bank such as HSBC, it happens, but the system for people to get finance is not really in place,’ he added.
He also explained how the real estate investment in Brazil has changed radically in recent years and the North East in particular is seeing a huge amount of developments thanks to its unspoilt beauty.
‘Five years ago we suddenly had an invasion of foreign buyers. It has meant that the whole system for buying real estate has moved to take this into account,’ de Souza said.