Investment Financing

Financing
As there is not a developed mortgage culture in a country like Brazil, the insvestment is purely based on capital. Despite this fact, it is expected that mortgages become available in a short period of time, helping with this to increase the value of properties and finding easyly possible buyers. Every investor must bear in mind that it is possible that they may have to pay the final price of the property, so they need to be covered in case they have to wait to resell the property.

Off-Plan Financing
If an investor compares options of mortgages in his own country and the payment charges applicable by a developer, he will realize that this is an interesting option. Many off-plan developers offer instalment plans over between 12 to 60 months, which is a thing to be considered. After considering all the options and making up your mind, we again recommend you to see a lawyer and a financial advisor to check if all the information you have is all the information you need.

1. Equity Release
Currently one of the most popular means of unlocking the value of your home involves taking out a lifetime mortgage plan. You borrow a set amount of money against the value of your home in the form of a mortgage. This is normally in the form of one lump sum, although there are now plans available that will allow you to take it out as you need it, which could be advantageous in minimising the amount of interest owed. As long as any outstanding mortgage is settled first, you can then spend the money you release as you wish. The best way to visualise it is to think of it as a long-term loan, secured against the value of your property, that is paid off when your home is sold.

2. Alternative Finance
If you want to finance your new property but you cannot opt to any of these solutions (i.e. mortgages or equity release), there will be alternative facilities for you to finance your investment in Brazil property.

Taxation
Non-residents are normally subject to a flat rate of 15% on gains from properties in Brazil but for example gains from the sale of an individual property, provided a similar sale has not taken place in the previous five years and the total value of the sale does not exceed a specified amount are exempt from capital gains tax. Anyway, property purchas tax cannot be charged on short term investments because the investor never takes ownership of the property.

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