Brazilian Central Bank Rule Stokes Interest In Overseas Property
News Posted On: 27 April 2012
A recent change to the amount of cash Brazilians are allowed to send overseas through banks and brokerage firms is increasing the interest in buying overseas property. In January the Central Bank decided to allow brokerage firms to conduct transactions of up to $100,000. Last year the amount allowed was just $50,000, and in 2009 the bank would only allow transactions of $20,000.
This increase has shown the huge pent-up demand to send money abroad, as brokerage firms had expected an increase of around 30% in transactions, but in fact growth figures are around 40%. It's not surprising they are hoping this figure will soon be increased to $200,000.
Back in 2008 the Central bank in Brazil responded to requests by small businesses and individuals to be able to send capital abroad, and allowed private brokerage houses to conduct foreign currency transactions internationally. Initially these transactions were limited to just $10,000. This didn't allow for large investments into property and education, or even into business imports, and the fact that this limit has been increased so quickly shows how big the demand has proven to be.
In recent years the real has been strong and stable, especially against the US dollar, and this has encouraged many Brazilians to purchase property in the US. Florida and Miami, which were hit hard by the housing crisis have proven particularly popular with Brazilians. The fact that Brazil's currency is so strong and stable is making it much easier for residents to plan for such purchases.
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Written by Les Calvert
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