Brazil overtakes China as second best real estate market for capital appreciation, report shows

[Nicholas Wallwork]

Brazil has overtaken China as the second best location in the*world for property capital appreciation, according to the*Association of Foreign Investors in Real Estate.

Not only has it replaced China but it has entered the top*ten capital appreciation investment destinations for the first*time. The US still takes the top spot.

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[debzor]

Brazil has overtaken China as the second best location in the*world for property capital appreciation, according to the*Association of Foreign Investors in Real Estate.

Not only has it replaced China but it has entered the top*ten capital appreciation investment destinations for the first*time. The US still takes the top spot. QUOTE]



"The US still takes top spot." ???

Did the authors actually speak to any American property investors, who in my limited experience have been clamouring to exit the US property market for the past two years, maybe more?

Capital DEPRECIATION is the current US buzzword, not appreciation!

I am very happy to hear of Brazil's progress, but this kind of clear misinformation tends to cast doubt on the validity of the whole report...

..or was it American realtors writing and reporting for Americans...?!

 

[JMBroad]

Threw me a bit as well... how can Brazil be second to the US when all we hear about in the US is foreclosures, sinking prices and doomsday stories? While it's nice to be in second place, I agree with Debzor that being in second place behind the US sounds terrible.

 

[robh]

Brazil has overtaken China as the second best location in the*world for property capital appreciation, according to the*Association of Foreign Investors in Real Estate.

Not only has it replaced China but it has entered the top*ten capital appreciation investment destinations for the first*time. The US still takes the top spot. QUOTE]



"The US still takes top spot." ???

Did the authors actually speak to any American property investors, who in my limited experience have been clamouring to exit the US property market for the past two years, maybe more?

Capital DEPRECIATION is the current US buzzword, not appreciation!

I am very happy to hear of Brazil's progress, but this kind of clear misinformation tends to cast doubt on the validity of the whole report...

..or was it American realtors writing and reporting for Americans...?!

The US has been on the way up for a quite a few months now.

Regards,
Rob.

 

[JMBroad]

Still, if the US real estate market is growing at a faster rate than Brazil I'd be very very concerned - lets not forget what caused the current financial situation that most of the world is in today (recovery signs or not I think it's a bit early to launch any fireworks)

While I'm delighted that the real estate market in the US is showing signs of recovery and has even been growing for some months now, I would have expected Brazil to lead the US.

I suppose we'll get there eventually

 

[debzor]

The US has been on the way up for a quite a few months now.

Regards,
Rob.

Sorry, Rob, but I think you may be the victim of spin!

Certainly there are a few pockets in the US where property prices are showing the first indications of improvement, but to describe the US as a whole as the top location in the world for property capital appreciation? And to also state it has just retained this position?

Speak to my friend from Fort Myers in Florida who is a million dollars out of pocket as a result of property depreciation; or my brother and his wife's family who live in the New England area; or even look at my own investments there.

Sorry but in my opinion the US is nowhere near, nor has it been for a long time, the top location in the world for property capital appreciation.

 

[robh]

Sorry, Rob, but I think you may be the victim of spin!

Certainly there are a few pockets in the US where property prices are showing the first indications of improvement, but to describe the US as a whole as the top location in the world for property capital appreciation? And to also state it has just retained this position?

Speak to my friend from Fort Myers in Florida who is a million dollars out of pocket as a result of property depreciation; or my brother and his wife's family who live in the New England area; or even look at my own investments there.

Sorry but in my opinion the US is nowhere near, nor has it been for a long time, the top location in the world for property capital appreciation.

Hi Debzor,

I sell real estate, I can recognise spin when I see it.

But I think we are talking about different things. Historically house prices are down but if you got in the market a few months ago or even now you won't be losing money in the next few years (but in the right areas, not in the slums of Detroit or New Jersey or the massive empty developments of Florida).
If you got in two or three years ago you have a long wait ahead before you see will see capital appreciation, but it will come.

The statistics, like mortgage approvals, money supply, all say things are moving up.

Regards,
Rob.

 

[robh]

Some stats for you Debzor,

US Housing starts rose by 1.5% in August to an annualized level of 598,000 from an upwardly revised 589k in July (originally 581k). This is the fourth consecutive monthly increase from April’s 454k low.

US building permits increased by just 1.0% in August to an annualized level of 579,000 from 564k in July, a figure also revised up from an original 560k. This is also the fourth consecutive monthly rise from an April cycle low of 498k.

The US remained top of the FDI league last year with inward investments of $316.1bn followed by France at $220.1bn, then China , the UK and Russia.

The figures for Brazil are equally if not more positive.

Regards,
Rob.

 

[debzor]

Hi Debzor,

I sell real estate, I can recognise spin when I see it.

But I think we are talking about different things. Historically house prices are down but if you got in the market a few months ago or even now you won't be losing money in the next few years (but in the right areas, not in the slums of Detroit or New Jersey or the massive empty developments of Florida).
If you got in two or three years ago you have a long wait ahead before you see will see capital appreciation, but it will come.

The statistics, like mortgage approvals, money supply, all say things are moving up.

Regards,
Rob.

My apologies, Rob, I had not fully read the article.

Now I appreciate it is a private invitation-only club for large corporate, pension fund, etc investment entities, not private individuals, who look towards large office buildings, etc.

As such I am not sure the relevance to private investors, as this is who I thought we were talking about initially. As an invitation-only club that is stating a survey of its own members, you would not expect them to talk down the market and their business interests, would you?

Their top town apparently is Washington DC - mentioned in numerous other stats for all the wrong reasons - and 5 of their top 10 worldwide cities to offer the best capital property appreciation are in the US...

Not really comparable to a beach facing condo in NE Brazil, as I had assumed!

 

[robh]

My apologies, Rob, I had not fully read the article.

Now I appreciate it is a private invitation-only club for large corporate, pension fund, etc investment entities, not private individuals, who look towards large office buildings, etc.

As such I am not sure the relevance to private investors, as this is who I thought we were talking about initially. As an invitation-only club that is stating a survey of its own members, you would not expect them to talk down the market and their business interests, would you?

Their top town apparently is Washington DC - mentioned in numerous other stats for all the wrong reasons - and 5 of their top 10 worldwide cities to offer the best capital property appreciation are in the US...

Not really comparable to a beach facing condo in NE Brazil, as I had assumed!

I hadn't read the article either but still I was talking about residential housing not commercial.

Regards,
Rob.

 

[PeixeGato]

Sorry, Rob, but I think you may be the victim of spin!

Certainly there are a few pockets in the US where property prices are showing the first indications of improvement, but to describe the US as a whole as the top location in the world for property capital appreciation? And to also state it has just retained this position?

Speak to my friend from Fort Myers in Florida who is a million dollars out of pocket as a result of property depreciation; or my brother and his wife's family who live in the New England area; or even look at my own investments there.

Sorry but in my opinion the US is nowhere near, nor has it been for a long time, the top location in the world for property capital appreciation.

I agree Deb. The "US property market" (if you want to look at the country as a whole) still has a way to go before it hits bottom IMHO. There was an article in the San Francisco Chronicle within the last week about how there is yet another wave of foreclosures about to hit the US market (and the SF Bay Area in particular). These are people who thought they had bought homes they could afford, but because of these ticking time bomb loans (adjustable rate mortgages which were written through 2008, believe it or not) and people being laid off, more and more people are falling behind. The last of the ARMs will not reset until 2013, unless they are modified first. And while 2013 will be the tail end, I would hardly say the US is done with property depreciation. The smart cash is still on the sidelines up here and I'd be surprised to see it come off the sidelines in any significant way for at least another 18 months or so.

Yes, there may be pockets that appreciate a bit here and there, but overall, we still have a way to go before we see the bottom. The only people talking about the end of the decline are real estate professionals.

I like what I see in Brazil these days, if for no other reason than the increase in the Real relative to the Dollar. It wasn't long ago when you could get 3 Real for each Dollar.