Brazil yields higher profits 'due to greater risk'
Article Date : Wednesday, March 21, 2007
Foreign property investors can make a profit in emerging markets, such as Brazil, as well as established markets, if they plan their investment well, Property Frontiers has said.
According to spokesperson Marsha Lu, no market is a bad market when it comes to investment if a buying strategy is worked out properly.
Although established markets are preferable and can still bring in a profit, newer markets like Brazil can yield higher profits, but they come at a greater risk, she said.
"Of course, when you compare the mature market with the emerging market, perhaps the return on investment you can make in the emerging market will be far higher," she stated.
"Normally if you take higher risks, you get better return, but if you take lower risks then the return is slightly lower as well."
Last month, Brazil made it into the top ten favourite property locations for UK buyers, according to an index by Currencies Direct.
However, the firm warned that Brazil is still a developing nation, which buyers should bear in mind before making a commitment.