Tag Archives: Property

Realty Vs Real Estate Vs Real Property

Realty and personal property terms have often been confused as to what they exactly mean. Here we will clear that right up for you. We will look at the terms personal property, realty, land, real estate, and lastly real property.

Let’s begin with personal property. Personal property also known as chattel is everything that is not real property. Example couches, TVs things of this nature. Emblements pronounced (M-blee-ments) are things like crops, apples, oranges, and berries. Emblements are also personal property. So when you go to sell your house, flip, or wholesale deal, you sell or transfer ownership by a bill of sale with personal property.

Realty.

Realty is the broad definition for land, real estate, and real property.

Land

Land is everything mother nature gave to us like whats below the ground, above the ground and the airspace. Also called subsurface (underground), surface (the dirt) and airspace. So when you buy land that’s what you get, keep in mind our government owns a lot of our air space.

Real Estate

Real estate is defined as land plus its man made improvements added to it. You know things like fences, houses, and driveways. So when you buy real estate this is what you can expect to be getting.

Real property

Real property is land, real estate, and what’s call the bundle of rights. The bundle of rights consist of five rights, the right to possess, control, enjoy, exclude, and lastly dispose. So basically you can possess, take control, enjoy, exclude others, and then dispose of your real property as you wish as long as you do not break state and federal laws.

Lastly there are two other types of property we should mention.

Fixture

Fixture is personal property which has been attached realty and by that now is considered real property. So you would ask yourself upon selling to determine value “did you attach it to make it permanent?” The exceptions to this rule are the garage door opener and door key, these are not considered fixtures.

Trade Fixtures

Trade fixtures are those fixtures installed by say a commercial tenant or can be the property of the commercial tenant.

I hope this clears up some misconceptions about personal property, realty, land and real estate and now fixtures and trade fixtures!

Comments: Cyprus Property – A Beautiful Place To Live In

Is It the Right Time To Invest In a Property in India?

Demonetization raised many brows and many possible paths for the future of the Indian real estate. Some Gurus of the realty market think that the prices of the properties will go down with the cash flow becoming critical in the market. Some people think that the prices will be stable since the price of the affordable sector has already surfaced. The future is to be seen but based on the present marketing conditions, the following are the reasons why one should invest in the real estate of India today.

1. The prices are negotiable

The primary real estate is mostly bought on the home loans, so there would be less impact on it but some things would change definitely. Those builders who do not accept the cash and do not get involved in any black money transaction would also be forced to sell their projects at the lesser prices to keep up with the present marketing conditions. If they sell at the old prices, they may lose the sales to the competitors.

2. Transparency is increasing

Indian real estate is moving to a better transparency. The Real Estate Act is set to regulate the market and all the project information and the related documents are to be digitised. The state is given the responsibility to formulate their rules and start implementing them soon. There would be no gaps between the things promised and delivered. Any land disputes or the grievances of the buyers would also be solved in lesser time.

3. Simplified taxes

GST is one more masterstroke at the right time. The Indian tax structure is a bit complicated and there are many direct and indirect taxes that needs to be paid by the seller. When the taxes to be paid decreases, the benefit is translated to the buyer. The cost of the construction materials would decrease and the affordable housing would be available at the further lesser price.

4. Resale market opens up for Salaried buyers

The resale or the secondary market has been for the affluent people who can pay the upfront cash for buying the property. The unaccounted cash has been disposed of in the resale market. The buyer gets to convert the black money into white and the property price appreciation fetches a further profit. So, the resale market has been on the top of the list for the black money holders. Now that cash is disappearing from the transactions, the salaried people could also get hold of the resale property at the much lesser prices compared to the primary property. Maybe the secondary market also offers the option to pay via loan and the buyers get the best deal out of it.

5. Home loans can become easier

The Indian banks are gaining the money fast. With the huge volume of money being deposited by the residents, the interest rates are supposed to come down and the banks will offer the home loans at much easier terms. This opens up a window of opportunity for the middle-class buyers who depend on the loans to buy their first home. This is probably a positive push to the PM’s vision of ‘Housing for all by 2022’.

The current situation marks the dawn of the new era for the Indian real estate. Now is the best time to invest in a property in India..

4 Things Sellers Need to Know About Property Auctions in 2018

The internet is home to millions of articles explaining 5 things to do or 10 things to do for buying property at auctions. In simple words, every article is talking about things to do for purchasing residence at house auctions. There is hardly any article talking about the things sellers should keep in mind during or before selling properties at auctions. This limited approach of agents is making auction events like a one-way road.

Everything for Sellers to Keep In Mind Prior to Selling Residences at Property Auctions:

This is what we are going to discuss in today’s article. Every coin has a flip-side. Without a doubt, auctions are definitely a platform for investors to buy residential properties. But if you look at the other side of house auctions, sellers, or estate agents get a chance to sell properties for making money. But there are certain things they have to learn about. Let’s talk about them below:

Auctions Help Sellers to Sell Properties at Actual Market Price:

Given below are the three big reasons of it:

• All buyers get an equal opportunity to buy residential investment properties for sale.

• Every buyer is given an equal treatment.

• Buyers place their bids in fiercely competitive environment.

What makes auction houses more profitable for sellers is the fact that if buyers keep chipping with their bids, auction continues indefinitely. The winning bid reflecting the highest price is shown only when everyone stops bidding and the clock expires.

The price of the winning bid is what the market will bear and the maximum amount of money that a buyer can pay. Most importantly, property auctions allow sellers to set the reserve price. This is why sellers don’t have to be content with the price they do not want to sell their properties at.

Only Eligible Bidders Bid on Auction Day:

Many auction platforms ask bidders to show proof of funds and fulfill rest of the eligibility criteria to be eligible for bidding at the auctions.

Financial Institutions or Lender Finance Investments:

Even financial institutes and lenders prefer financing investment properties for sale at auctions. As for reason, they have all your income proof, proof of funds, and other important documents already in their hands to secure the money they are lending you to finance your investment.

Transparency and Level Playing Field:

This is another thing sellers should know about prior to visiting auction rooms for selling their investment properties for sale. Meaning, no-secret handshakes and no backdoor deals etc. Auction houses disclose every single Term & Condition upfront to all buyers and sellers. This helps both buyers and sellers feel that they are on the same page and they are not overpaying for anything. Nothing is being hidden from them.

Final Words:

Hopefully, this article helped a seller like you to learn something useful prior to visiting the auction room for selling their properties.

The Insider’s Guide to Buying Equestrian Property

There are some spectacular horse farms and ranches for sale at any given time, so you’re likely to have a wide variety of properties to consider. You may be tempted to dive right in and start touring the areas you’re considering for your property, but we encourage you to be deliberate in your process, because we know the time you put in up front will pay big dividends later on.

To help you, we’ve put together this quick read – a primer of sorts.

So, let’s get started. There’s quite a bit to consider when searching for horse property. We’ll start first with some general questions, and follow that with a list of important considerations to keep in mind when searching for properties. Here we go:

1. What’s your level of interest in horses?

Of course, you like horses, or you wouldn’t have made the decision to buy horse property.

But beyond that, the spectrum ranges from wanting property that can accommodate one or two of your own horses, to a commercial horse facility that specializes in professional training, boarding, breeding, or more.

And keep in mind too, that your level of interest may progress, say from beginning novice to a fully involved professional, which may lead you to a new property or property upgrades.

2. Where do you want to be?

Naturally, there may be many variables that influence this decision, with the basic ones being things like a desire to be near friends and family, or to live in a particular school district or county, or near a particular city. But beyond that, keep in mind that your answer to Question #1 will also bring its own considerations, such as:

  • Desire to be near facilities that accommodate your horse related interests, such as open state land, trails, or particular training or show facilities for specific types of horses
  • Desire to be near the ‘hub of the industry’ for your particular horse activity. This is particularly important if you’re a professional serving a market, or if you’re aspiring to achieve levels of accomplishment in the horse industry. The ability to network easily with like-minded horse people may be a consideration.

3. Do you want to build new on vacant land, buy an existing horse property, or buy an existing property that can be renovated to accommodate horses?

You can specify one or be open to all of these possibilities, and your preference may be influenced by some of the factors to consider as you keep reading.

For now, know that each of these options has its own advantages and disadvantages.

– Building new will enable you to have exactly what you want, but it will also take more planning and lead time, and may be more expensive.

– Buying an existing property is likely to be quicker, and possibly less expensive, but you may not find exactly what you want.

– And buying an existing property that can be renovated may bring some advantages of the first two options, but require planning, patience and vision that not all buyers have.

4. What is your price range or budget? Will it be a cash purchase or financed? Is it contingent on the sale of other property?

Like the answers to Question #3, each of these alternatives has its own advantages.

If you’re paying cash, you should be able to close on your purchase sooner, and possibly negotiate a better price.

If you’re financing your purchase, it’s best to be in touch with a lender in advance, to confirm your buying power and being the application process.

With those broader questions behind us, let’s get into more specific questions and important factors to consider:

How many acres are you looking for?

Think about the layout of the farm – the residence, barn, stable, paddocks, round pen, and storage for equipment, hay, feed, tack, bedding, etc., as well as pastures and hayfields (unless you plan to purchase all your hay), riding arenas and on-site trails.

Are there zoning or other restrictions that need to be considered in the areas where you want your farm?

If you intend to maintain grazing pastures, you’ll want to allocate two acres per horse. Be sure to select properties where horses are a permitted use or allowed under a special use permit.

And be aware of boundary line setbacks, which can vary by unit of government.

Know your soils.

Know what the soil types are before purchasing the property.

During wet seasons, poorly-drained clay and loamy soils in areas of high horse traffic are a maintenance nightmare and can be a health problem for horse’s hooves.

Ideally, barns and paddocks should be on well-drained sandy soils, or if they are on fine-textured soils, they should be graded to promote positive water drainage away from barns and high traffic areas.

Many farms will have a variety of soil types, which should influence the layout of the farm based on the uses for which the soil types are best suited. High loam soils are great for hayfields and pastures to help withstand drought. Agriculturally marginal soils can be used for trail riding, training areas, and turnout areas where horses are kept on hay instead of pasture.

What would you like the topography to be like?

The lay of the land has both practical and aesthetic relevancy. A picturesque horse farm on a rolling, tree-lined landscape has enormous aesthetics appeal.

However, from a practical standpoint, some level ground is desirable for building and training areas. Also, hayfields and pastures do best on level or gently rolling tillable ground.

Topography controls how well surface water drains from the property. Wetlands, swamps, and ‘pothole ponds’ characterize poorly drained areas, which contribute to ecological diversity, but have little practical use on a horse farm.

Access to water

A horse farm operation will use potable water in both the residence and the barn, and depending on the number of horses, the gallons used in the barn may far exceed the amount used in the residence.

Most rural areas don’t have access to a public water supply, so it’s important to have a good well (or wells) available, or that an aquifer exists, underlying the property, from which a good water supply can be developed.

The primary uses of water on the farm are for watering and washing horses, general cleaning, dust control in training areas, and, in some cases, irrigation.Irrigation used to keep pastures green or to water hayfields can exceed all other uses. If available, surface water, from a pond, lake or stream, can often be used for irrigation purposes.

Availability of other utilities and services

Other utilities and services covers wastewater disposal, electrical hookup, heating energy source (natural gas, LP gas, fuel oil), internet availability, cell phone coverage and solid waste disposal. All are important to consider.

In rural areas, septic tanks and drain fields are the most practical way to treat and dispose of wastewater. However, not all soils are conducive to the use of these systems. Percolation tests may have to be done to determine whether the soils are suitable.

Natural gas is the preferred energy source for heating, but many rural areas will only have propane gas available. Horses generate a lot of body heat, so the need for space heating may be limited. Heating wash water and preventing horse’s drinking water from freezing can usually best by done with electricity.

How is the coverage?

Having good internet connection and cell phone coverage is becoming increasingly necessary. Some remote areas may still have connection problems.

How will you manage the stinky stuff?

Horse farms generate a considerable amount of solid waste in the form of manure, and you’ll want to consider how manure will be managed when planning a horse farm purchase. Options are spreading it on the land, perhaps giving or selling it to nearby farmers, or having it hauled to a landfill by a contract waste hauler.

Existing and Planned Structures

Whether you’re buying an existing horse farm or one with existing structures that can be renovated for horse related uses, inspect closely (1) the quality of the structures, including buildings and fences, (2) for the possibility of nuisance problems that result from poor layout or adoptive use, (3) to determine the cost of renovations necessary to fit your intended uses of the property.

Get Help!

Find an agent that truly understands equestrian properties – if they don’t know what you’re talking about when you’re talking “horse”, they can’t adequately represent your best interests. Do your own due diligence to find one with the necessary knowledge.

And last, but certainly not least, consider the neighbors

Horse people are generally quite neighborly and easy to get along with. Generally, they like to network and socialize with people who have similar interests, like horses and country living.

That said, there are people who enjoy outdoor activities with little regard for environmental stewardship or the sensitivity of others, so before purchasing, it’s prudent to ask some questions about the neighbors, or better yet, to meet them personally.

Whew, there it is.

Hopefully, that list of questions and considerations was helpful, and not too daunting. Yes, there’s a lot to consider before buying horse property, or any property for that matter.

But, as the saying goes, it’s also not rocket science, but rather simply a matter of doing your homework and due diligence. And of course, in that regard, it’s also important to work with a qualified and competent Realtor

How to Find the Property Lines for Your Land

As a land owner, knowing the location of your property lines is one of the best ways to avoid disputes with your neighbors.

Property lines, or boundary lines, are the defined points where one owner’s land ends and the neighboring property begins. A property owner uses boundary lines to determine where they can legally place items such as fences, driveways, outbuildings like pole barns or anything else. Erecting a structure on or partially on another person’s land can lead to lawsuits and unpleasant situations with neighbors.

1. Check your deed. The deed contains the legal description of your property, which is basically the property’s measurements and boundaries in words. For most people, the property description can be difficult to interpret, so you may not find it helpful. However, sometimes, the legal description uses landmarks and measurements that you can interpret. If that’s the case, measure from the landmarks in the description to the property lines. Mark each corner with a stake or other marker. Measure from each stake to the next all the way around your property to ensure the measured lines match the deed. Physically measuring the boundaries will allow you to visually determine where the lines are and avoid encroaching on your neighbor’s land. Just be warned: An old description may rely on the location of a tree that no longer exists or a creek that has gone dry.

2. Check the official website for the assessor’s office in your municipality. Some assessors have mapping tools available online for all of the real estate in the area. You can use the maps to find the boundary lines for your property and to determine where nearby landmarks are located, such as the east line of your street. You can use these landmarks as fixed points to measure from. Using a tape measure or measuring wheel, measure the distance from each of the landmark points to your property line as shown on the maps.

3. If you don’t have a copy, and there’s nothing available online, visit the county recorder’s office or the assessor’s office. When you bought your property, you may have received a plat map, showing property lines and measurements. If it wasn’t included with your paperwork, check with your local clerk’s or surveyor’s office. Ask if there are any maps available for public viewing that include your neighborhood and street. Some of these maps may be available online, while others will be hard copies or microfiche copies. Even maps of neighboring properties can be valuable if they show shared property lines.

4. Last but not least, hire a surveyor. The most surefire way to determine legal property lines is by hiring a professional. The surveyor can measure and map the property and will generally also mark the corners of the property with stakes. It’s always a good recommendation to be present when the surveyor comes to measure your property, so they can review the property lines with you. The cost of a survey will vary depending on your location, lot size, and other variables. The surveyor needs to be licensed with your state and should carry professional liability insurance, which can cover you if the surveyor makes a mistake in the survey.

London and Monaco are Europe’s Most Expensive Cities For Residential Property Buyers

Closely on its tail is Prime Central London, where 120 sq. m. super-luxury apartments can cost £1,170,000 or £9,750 per square metre (sq. m.) (in Euro: €1,742,656, or €14,522 per sq. m.). Apartments of 120 sq. m. in other luxury areas of Central London are likely to cost £580,000 or £4,833 per sq. m. (€863,880 or €7,199). The large difference is explained by London’s highly segmented top-end market, with super-luxury apartments in absolutely prime areas commanding considerable premiums.

Paris and Amsterdam follow London. A 120 sq. m. apartment in either of these cities has an average purchase price of €800,000 (€6,667 per sq. m.).

Moscow is Europe’s sixth most expensive capital for buyers of residential property. And though apartments in Moscow can be rather rewarding for buyers in terms of rental income returns, investors should be aware of the high risks (purchases are cash-based, and the authorities can suddenly turn hostile).

Dublin makes an appearance among Europe’s most expensive cities in 10th place, with a high end 120 sq. m. apartment on average costing around €600,000.

The Baltics, till recently Europe’s hottest residential investment destination, are now expensive. A high-end apartment in Central Vilnius, Lithuania will cost on average around €3,792 per sq. m (€455,000 for 120 sq. m.). Latvia follows closely with high-end apartments in Central Riga costing an average of €3,020 pr sq. m. Rental yields in the Baltics have also dropped to very low levels.

There are still some very inexpensive capitals in Europe. Berlin, in particular (€3,167 per sq. m.), is now experiencing inflows of foreign money in response to its relatively low prices. But much less expensive are Slovakia’s Bratislava (€1,292 per sq. m.); Warsaw, Poland (€1,175 per sq. m.); Skopje in Macedonia (€1,125 per sq. m.) and Chisinau in Moldova (€917 per sq. m.). It is to be expected that foreign buying in some of these capitals will accelerate.

Rental returns are falling

The rental returns on owning apartments in Europe vary greatly – from around 14.13% in Moldova’s capital Chisinau, to 2.43% in Monaco. The trend is for rental income returns to fall, because rents are not keeping pace with prices anywhere in Europe. As 2007 dawns, rental returns are lower in most locations than they have been for 20 or more years.

To some extent rental returns appear to correlate with risk. Most of Europe’s ‘high yielding’ countries are in the East. Apartments in four Eastern European capitals earn above 10% rental returns: Chisinau, Moldova (14.13%); Warsaw, Poland (13.28%); Sofia, Bulgaria (10.56%); and Bratislava, Slovakia (10.06%). The higher risks of the East may be a factor in these returns (high corruption, political risks).

But risks are not the only factor. The Global Property Guide believes that the relatively recent arrival of the market economy, high interest rates, and relatively undeveloped mortgage markets. To illustrate, it would surely be hard to label the historic city of Bratislava, Slovakia, as a high-risk location, yet the rental income returns are excellent.

Western Europe generally suffers from another, different disadvantage: High taxation. There are high rental income returns to be earned in Amsterdam and Paris (8.25% in both), in Munich (7.80%) and Brussels (7.53%). But all four cities are high tax environments.(Poland and Moldova are also high tax for rental income.)

Property in Prime Central London returns surprisingly high rental yields, at 7.13%. Note that this “Prime” category encompasses relatively a narrow group of super-luxury apartments in absolutely prime areas (Belgravia, Chelsea, and Knightsbridge). The high returns in these select locations contrast with the significantly lower rental yields (5.79%) available in Central London’s other luxury areas (Kensington, Bayswater, Notting Hill Gate, St Johns Wood, Highgate, Islington, Highbury, and Primrose Hill).

Rental returns cannot fall forever

Nowhere in Europe are rents keeping pace with the continued rise in property prices. This is cause for concern. At the Global Property Guide, we informally consider a danger signal to be rental returns of around 4% or below.

Several European capitals offer rental income yields around or below this 4% level. An example is Madrid, where rental returns are now at only 3.15%.

See the tables at: [http://www.globalpropertyguide.com/articleread.php?article_id=82&cid]

Property for Sale and Rent – All About Property Agents

Property agents are professionals who help in connecting buyers to sellers in the property industry. Some of the property agents also do link up tenants to landlords for property rental.

How does a property agent earn money? He or she earns by linking up the two interested parties and charging them a commission when a deal is confirmed. For property sale, the commission is usually charged to the seller, whereas for rentals, the commission is charged to both parties involved in the transaction. How much does an agent charge? He or she generally calculates their fee as a percentage of the selling price and as part of the rental.

The seller of a property usually leave his or her keys with the agent so that whenever there is someone interested in it and wants to take a look, the interested party can contact the agent directly. This will save a lot of hassles for the owner.

A lot of home seekers like to seek out property agents for their good services, as well as getting properties quick. As the agents are very familiar with the real estate industry, it makes perfect sense to approach them to get an idea of the going rate for properties in that region. They will generally know the prices of various real estates of different types and at various locations in a particular region.

The real estate seller can possibly get a few thousands more for his or her property by using the sound advice provided by an agent. A good agent will analyze the needs of a home buyer or tenant and provide suggestions on what kind of home could be available to them within their budget. By servicing both the buyer and seller, property agents can earn commission by help selling the house, and if they make the buyer happy, they too can earn a good reputation and hence more businesses in the near future.

However, it is worth noting that property agents work on seller’s behalf. So, beware if they are trying too hard to sell a property. To find trustworthy agents, you can search on the Internet and locate website which lists properties in your region. For each property listed, there is usually an agent in charge of it. Some websites offer review and testimonials of the agents for the transactions that he or she has done. This will give you a rough idea whether the agent is trustworthy or just out to earn commission.

Libra Native: Combinations Giving Luxury, Wealth, Waterfront Property and Pleasures of Bed

According toBhavartha Ratnakar, a famous Sanskrit treatise on astrology, Saturn is the yogakaraka (the creator of auspicious combinations) planet for the Libra native; though being the lord two lean positions, third and six houses, Jupiter is also a yogakaraka.

For Libra ascendant, Saturn owns the fourth and fifth houses. Being the lord of the fourth house (Capricorn), an angle, Saturn forgets its evil or malefic tendencies, and the lordship the fifth trinal house makes it fully auspicious. Hence Saturn is the fully auspicious planet for the Librans. However, the auspiciousness of Jupiter-which according to the general rule of astrology forgets its auspicious nature due to ownership of the mildly evil third house (Sagittarius), and by ownership of the sixth house (Pisces) it becomes a functional malefic. But, Jupiter is exalted in Cancer, in the Mid-heaven, tenth house-most important of the angular houses-for the Libra native; therefore, it becomes capable of creating auspicious combinations.

The presence of Saturn in ascendant in exaltation, in the sign of Libra can raise the fortunes of Librans very high. Saturn is the significator of the sixth, eighth, tenth and the twelfth house, according to most of the treatises of Indian astrology.

Therefore, for a Libra native, it influences six houses, including the fourth and fifth. In one fell swoop, only one planet (which is otherwise considered a malefic for most others) makes six houses favourable to the native! What else can you want?

In addition, the presence of the Sun (own house-Leo) and Mercury (one step away from exaltation and own sign Virgo), brings together the significator (Sun) and lord of the ninth house (Mercury) of luck. If Venus, the lord of the first and eighth lord, is also in the first house then the stage is set for luxury (represented by Venus-own house-and Saturn, the owner of the fourth house); wealth through Saturn-fifth house-and Sun, eleventh house plus Mercury, ninth house, general prosperity; waterfront property Saturn (fourth house); and pleasures of bed through Saturn (significator of twelfth) and Mercury (the lord of twelfth).

Similarly Saturn in the fifth (Aquarius), Moon and Jupiter in the tenth (own house and exaltation, respectively) with the Sun in the third (Sagittarius) and Mercury-Venus in the fourth, can create a chemistry they can give all the four captioned goodies plus more.

Presence of the Mars (own house) and Moon (tenth lord-one step from exaltation) in the seventh, aspected by Jupiter in the third (own house Sagittarius), the Sun in the eleventh and Mercury and Venus in the tenth will give the Libra native luxury, wealth, waterfront property and pleasures of bed throughout life.

The Right Brazil Property Investment

Demand within Brazil property looks set to continue for at least the next two decades with the market offering some of the best investment opportunities around. But as always, the secret to high returns is choosing the right sector for your investment in Brazil.

And all the signs are pointing to the middle and lower ends of the Brazilian property market as the areas where demand is highest and supply lowest. On the other hand, at the other end of the spectrum, the luxury property market is clearly showing signs of strain.

Over the last two years, investor focus – both Brazilian and foreign – has been firmly on the high-end of the Brazil real estate market. Properties priced over R$700,000 (€315,000) have seen spectacular rise prices, particularly in Rio de Janeiro and Sao Paulo, prompting speculation that the luxury property market is about to peak.

But while the top end of property investment may well be in danger of collapse, other market sectors are showing quite the opposite.

Prices have also risen in the middle and lower ends of the property market and construction continues apace, but demand still has a very long way to go before it comes close to meeting supply. Wilson Amaral, Chief Executive of Gafisa, one of Brazil’s largest real estate companies, claims that Brazil needs to build 1.6 million new properties every year just to satisfy demand from families entering the market. And all this without even addressing Brazil’s massive shortage of homes, currently estimated at around 7 million.

Quoted in the business broadsheet, Valor Economico, Mr Amaral said that “if Brazil goes on growing at 5% to 6% a year, with salaries rising above inflation and young people entering the job market, demand will go on rising at current levels for the next 20 years”.

His predictions echo the Ernst & Young report, Sustainable Brazil – Housing Market Potential, which describes meeting demand for property in Brazil as a “huge challenge”. Statistics in the report point to an increase of 58% in the number of households in Brazil by 2030. This together with a rapid increase in purchasing power leads Ernst & Young to forecast the construction of 37 million properties in Brazil over the next two decades.

A huge slice of these homes will be built for Brazil’s fast-emerging middle classes, indicating that this sector is the one with the biggest investment potential.

Meanwhile, the Brazilian government is focusing on meeting some of the demand. The state housing programme, Minha Casa Minha Vida aims to build 3 million homes by the end of 2014 through heavily-subsidised loans. But it’s more than obvious that Minha Casa Minha Vida will only go part of the way to help reduce demand.

Buyers in the middle and lower sectors of the Brazil property market tend to have a bigger stake in their homes than those in more developed markets. Brazilians buying off-plan typically pay 25% to 30% of the property price in monthly installments over the construction period. As a result, buyers are much more price sensitive and house prices in this sector of the market tend to experience a slow but steady rise unlike the steep price hikes seen in luxury property.

So, while speculation in the high-end property market in Brazil’s big cities is expected to lead to the market peaking in the very near future, the very opposite is true for the middle and lower sectors. Here, the combination of relentless demand – that’s unlikely to be met for at least 20 years – and buyer profile means there’s scope for successful investment in property for many years to come.