Investing in South America: Real Estate is a very good option.
In the economic crisis of 2002 most of the South America countries painfully discovered their economies disadvantages. They used to be very indebted with international financing institutions and with much undiversified markets to export. After that, those developing countries began to correct the problems they have detected and went out of the crisis injured, but not death.When the 2008 crisis arrived, the countries that mostly suffered the 2002 crisis were economically stronger, with diversified markets to sell its products and a very low external debt. That is why many South American countries did not feel the crisis effects.
In the nowadays global economic crisis, South America and Asia seem to be stronger than a few years ago and the repercussions are not notice by those countries people (but there are some exceptions).
The developing countries’ economies are growing and investing in those countries seems to be the safer way to take care of our money, mostly if we consider that many strong banks fell down all over the developed world.
These countries (I mean Asia and Latin America Countries) were always looked with distrust but they have a big advantage over the rest of the world, or must be say over the developed countries, they have learned about their mistakes.
Those countries sell to Europe and US but now have a great advantage over them; they are not tied to International Credit Institutions as they were in the past. They are more independent now, they need those markets but if those markets fall, they can ask help from international credit sources because they have now, internal reserves that allow them to face debts if they need to.
The construction companies, not only local, also international are investing many billion dollars in South America.
One of the most privileged countries with this investment wave is Uruguay, because it is politically stable and the government (no matter what political tendency it has) is always promoting the international investments in all fields.
In a global economy the isolation does not exist, anyone action affects everybody situation, so a good way of preventing economic troubles is to invest in secure scenarios.
The Real Estate investments are a great option in South America, the prices to buy are low compared with the USA and it is a safe investment.
In Uruguay is located the seaside called Punta Del Este. This seaside has been chosen during decades as the main vacation place for the international Jet Set, it is the South American Monte Carlo. It has got many 5 stars hotels and Casinos and investing in real estate there is a very clever and lucrative option if you are looking for your money to be safe and producing rents. In Punta Del Este you can buy a house for USD 200.000 or even for several million dollars. All the constructions are made with excellent materials.Other choices you have to invest in South America are in farms. The land is very fertile (mostly in Uruguay, Argentina and in the South of Brazil). The lands of these countries are ideal for feeding livestock due to the large extensions of pasture, and are also excellent for agriculture because the most of its territory is very fertile.
A standard Punta del Este house
The prices vary according to region, the extent and soil fertility, irrigation, and the architectural quality of the country houses: a small farm can be bought by USD30000 but if you´re looking to invest more money you can find farms for many million dollars.
Must be remembered that Argentina, Brazil and Uruguay are part of the MERCOSUR, a regional commercial block that is increasing its presence in the global markets, so investing in farms in this region can be a very good business option, because the quality of the products that are produced there is very high.
Another real estate investing choice is also related to farms, but not as a productive project but as a touristic venture, these touristic investments are called “touristic farms” and they work as rural hotels, they are ideal for people that is looking for peace and quiet.
Farm located in Colonia, Uruguay
Investing in South American Real Estate, even more if countries like Uruguay, Brazil and Argentina are chosen is a very good way to protect the money in a global economic crisis scenario where the stronger countries to face the crisis are those who a decade ago were almost in default. Nowadays the developing economies have learned the lesson and they have made historical and radical corrections to avoid the consequences of the mistakes they made in the past.
Now the world is looking to the South, not with distrust as in the past but with hope, because investing in those countries (not only in real estate, also in infrastructure, manufacture, technology, and so on) can be the solution for the globalization economic problems.
In this economic situation, where even the strongest countries from one day to another can be the weakest and the third world undeveloped countries (now are called developing countries) can show an amazing strength, everybody needs to be in touch with everyone and left the pride and the fears behind.
We are in 2012, so let’s face the future with optimism and changing the mindsets will help to overcome the economic crisis.
The globalization has got its disadvantages but there are also good things to take from it, the countries are more connected and it is true that sometimes it can be dangerous to the economies but is also true that overcoming the crisis is easier if we are not alone and there are good neighbors to help us
by: THE HARLEM TIMES
