Hong Kong investor Mark Ferguson bought his first Brazilian property at the end of 2007. An adviser himself, as senior consultant with IP Global, he reasons that 'everything stacks up' for Brazil.
'I like Brazil's economic story. And its property prices still look cheap compared to other BRIC [Brazil, Russia, India, and China] countries. The legal infrastructure is transparent, and you can borrow from a number of international banks that have a presence there. The capital gains tax is low.'
Ferguson bought in Campo Belo, an exclusive neighbourhood of Sao Paolo he describes as an area with potential. His off-the-plan flat is due for completion in early 2011, when he expects a rental yield of 8 per cent to 9 per cent.
He's taking a 10-year view, perceiving that Brazil 'is still very early in its economic development', and expects the property market will remain liquid, making his flat easy to sell when the time comes.
