Canadians are no strangers to real estate investment. Florida and Arizona feature high on their list of favourites, particularly for the snowbirds who overwinter in the warmth. But they’re now spreading their wings further across the globe. As a result, Brazilian real estate has entered their radar with the antennae firmly fixed on the Fortaleza coastline.
The Globe and Mail broadsheet takes a look at the newbies in Canadian investment portfolios. As well as tried and trusted favourites, some more unusual destinations have appeared. The up-and-coming places where Canadians are buying property abroad include Brazil and specifically the northeast coast.
Big, beautiful Brazil
The publication reminds its readers that Brazil “is so much more than Rio de Janeiro”. The author behind the quote is Kathleen Peddicord who knows something about buying property abroad, being the author of “How to Retire Overseas”.
Peddicord recommends Canadians shift their Brazilian real estate focus to the northeast coast to home in on Ceará state and its capital, Fortaleza. “Foreign investors overlook gems such as Brazil’s northeast coast in and around the city of Fortaleza,” she says.
Brazilian real estate near Fortaleza
Brazil is world famous for its beaches and according to Peddicord, the northeast of the country delivers some of the best. “It’s the quintessential Brazilian beach that you think of,” she says. “White sand and long stretches of coast.”
Along with beauty, another advantage is the tranquillity and security found in the area. “This is a safe and quiet place because it’s off the radar and being off the radar has its advantages.”
Ceará has been part and parcel of Brazilian holidays for years. Discerning travellers from Rio de Janeiro and Sao Paulo have been visiting since the 1970s. With the vast increase in direct flights to Fortaleza Airport more international tourists are discovering Ceará .
Best bet for 2019
Canadian investors might be discovering Brazilian real estate in Ceará now, but the coastline has already featured as a top investment spot this year. The American publication Live and Invest Overseas earmarked the Ceará coast as the second-best property investment destination in the world in 2018.
The main reasons Ceará featured as one of the world’s top real estate investments are low-entry prices and rental return. Live and Invest Overseas described plots on the Ceará coast as “a global bargain”. It also stated that “rentals targeting the local holiday market can earn better than 8% net yield reliably”.
Brazilian real estate ranks as a favourite too among some of the world’s wealthiest property investors. The American Association of Foreign Investors in Real Estate (AFIRE) ranked Brazil as the second-best place in the world for capital appreciation in their 2018 survey.
It’s therefore no surprise to discover that Ceará has crept onto the overseas property investment radar for Canadians.
Florida perennial favourite
But as well as looking at up-and-coming destinations, the Globe and Mail also includes some firm favourites with Canadian buyers. Florida is one of them, but the publication suggests investors turn their attention away from West Palm Beach and Fort Lauderdale in favour of quieter and cheaper destinations. It recommends the Tampa Bay metro area where Canadian buyers can buy “the same kind of real estate but for less money”.
(Source: Globe and Mail)