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Check exchange rates before buying property in Brazil

People looking to buy property in Brazil have been advised to check the exchange rates before transferring their money.

Mark Bodega, director of currency specialists HiFX, said property buyers should time when they exchange their money to avoid paying more for property in Brazil than they had intended.

Inevitably, a large sum of money will have to be transferred into Brazilian Real before a property can be bought in the Latin American country.

He said: "This vital element of the purchase or big move process - one that is often overlooked - can make a huge difference to the price, in sterling, that you will have to pay for your dream home."

By timing the transfer of the money at the right moment, people looking to buy property in Brazil can avoid paying thousands of pounds more than they had anticipated.

Mr Bodega explained: "Brazilian Real exchange rates change constantly and ten per cent fluctuations in a relatively short space of time are not uncommon. This could effectively increase, by ten per cent or more, the sterling amount that you will have to pay."

He gave the example of September 2009, when British sterling depreciated against the Brazilian Real to 2.73, after reaching 3.42 in late February 2009.

Since that crash, sterling has recovered to 2.967 against the Real, but investors in property in Brazil should be aware that there could be more fluctuations at any time.

Investors in property in Brazil should also expect to be charged a fee to transfer their money across to the Latin American country, he advised. The local bank receiving the money may also make a substantial charge.

Brazil's economy was one of the first to make it out of recession, showing the country is one of the fastest developing in the world.

The latest forecast from the International Monetary Fund (IMF) predicts the Brazilian economy will grow by 4.7 per cent this year, making investing in property in Brazil safer than in some other countries.

Brazil's economy will continue to expand in 2011 according to the IMF, with predicted growth of 3.7 per cent.

With the football World Cup in 2014 and the Olympic Games in 2016 both to be held in the country, Brazil is set to be an exciting place to be over the next decade.

Tourism revenue will receive a boost from the two major sporting competitions and the country may well continue to be an attractive market for investors.

More articles can be read at www.propertyinbrasil.com/Brazilian-News/