News Americas, NEW YORK, NY, Weds. Sept. 8, 2021: Real estate in South America is flourishing, and it attracts investors for good reason. Despite peculiarities like currency risk and elevated fees, the pros outweigh the cons. Advantages like less stringent taxation, asset diversification, and favorable exchange rates make investment increasingly attractive.
In recent years, it has also become more accessible, as national and multinational real estate providers now give access to markets across the continent. While property prices in the US are rising and citizens are struggling with late payments and credit restoration, the cost of real estate south of the border is modest; you can check creditrepairpartner.com for details. Here are the key differences to bear in mind.
Key Facts
The Latin American region is only starting to heat up. The market is worth $75 billion as compared to the $1 trillion capitalizations of the US market.
- Until recently, the local real estate opportunities were most interesting to pension funds and insurance companies, but investors have also started flocking to the region.
- The yield rates are high in comparison with the US.
- The climate and beaches guarantee demand.
- The cost of living is modest.
- Foreign investors get protections similar to those for local citizens.
- Acquisition costs are relatively low.
Which Markets To Choose
The continent has a lot of great places for investors, but some countries offer more favorable conditions. Where should you invest? Here are three of the top destinations for real estate investors in 2021.
1. Brazil
Not only is this the largest country on the continent. Brazil is also one of the biggest global economies, and it is predicted to become the fifth-biggest on the planet by 2035. Investment opportunities are diverse. Brazil ticks all the boxes for holiday homes, retirement, and investment. It has a diverse landscape, perfect climate, rich culture, and affordability. The average rental yields are particularly attractive — 3.26%.
2. Chile
In Chile, you will pay less tax (there is no tax on capital gains) and get almost the same benefits as local citizens. Due to the global pandemic, real estate prices have decreased across the country. The national market is being reactivated. It is a large, experienced, and liquid environment for affordable investment opportunities. Mortgage rates are modest, the rental yield is 4.10% and down payments are reasonable.
3. Colombia
Here, rental yields are even higher than in Brazil — 6.3%. The demand for vacation rentals is growing, so there are plenty of opportunities to explore. The government recognizes the value of the foreign investment, so the process of acquiring property is simple. Real estate prices are extremely affordable.
To Sum Up
South America is an attractive location for real estate Investors in 2021. Brazil, Chile, and Colombia stand out due to the rich opportunities they offer. These countries have affordable property rates, high yields, and lower tax rates.
