Big real estate profits. That’s where my attention is. Because if you buy at the right time at the right price in the right market, you could as much as double your money in five to seven years’ time. This is something I’ve seen play out time and time again. It’s what I seek out in my capacity as a global real estate scout.
Take Northeast Brazil as an example. If you’ve been watching the news lately, you may be aware that things don’t look positive for Brazil. Recently, the Olympics have featured heavily in the news. Now that they’re over, the media is free to focus on the doom-and-gloom story it had before the Olympics: The impeachment and trial of President Dilma Rousseff and the recession in Brazil.
If that’s all you read about Brazil, it would be easy to get the idea that there’s no opportunity here. But that’s not true. In fact, Brazil—or more specifically Northeast Brazil—offers one of the strongest opportunities on my beat right now.
In the northeast, the economy is strong—and still growing. Tourist numbers are growing—and the port and free trade zone of Pecem continue to be major boons to the Northeast’s economy. But, because locals are gripped by fear, they’re not buying real estate. And those who need to sell fast are having to drop their prices to entice a buyer.
That’s creating the kinds of deals Brazilians call a “galinha morta” deal—literally a “dead chicken” deal. A “dead chicken” may not sound too appealing to you. But for Brazilians, that term signifies a no-brainer deal; a meal you don’t have to chase. Something we would think of as “low-hanging fruit.”
Get in now on one of those no-brainer deals and you could save 30%, 40%, even 50% on pre-crisis pricing. Then, as things pick up in Brazil again and values rise, you’re sitting on something that’s worth a lot more than you paid for it.
And with a weakening of the real, Brazil’s currency, and a strengthening of the dollar, your investment dollars go much further now. Your dollars buy much more than they did a couple of years ago.
Take one stand-out example I’ve got word of in recent months. A contact on the ground told me about a spacious and luxurious condo on the prime boardwalk that was listed for sale in Fortaleza—Northeast Brazil’s most popular tourist destination. And a thriving city in its own right. Fortaleza is a First-World city…and home to 3 million people. It’s a domestic tourist favorite—attracting 4 million visitors in 2014. That number is growing every year.
The condo is spread out over more than 1,900 square feet and takes up its own (17th) floor. Before the crisis, its stunning views would have set you back 3 million reais ($1.5 million at the exchange rates before the crisis).
But the owner needed out quick. He listed for 1.9 million reais. In the end, he sold for 950,000 reais. At the time, that wasn’t much more than $250,000 for a primo condo in a world-class city in the middle of a medium-term upswing.
That’s less than a fifth of what it would have sold for pre-crisis. And, as the market starts moving again in the future, the value of that condo will rally. You could easily see the value of that condo double in the next five to seven years.
That’s just one example of the kind of “dead chicken” opportunities available in Northeast Brazil at the moment. And just one example of the places on my beat where you could double your investment in the next five to seven years by buying right.