The expert, Dr David Lynn, is the founder of Lynn Capital Management and Dr Lynn spoke to National Real Estate Investor on the subject. He was keen to reassure investors that are interested in putting their money into property, that they could do worse than Brazil. He explained that the country has much lower levels of debt than much of Europe, where many investors are from.
“European investors are not putting their cash in domestic property,” claimed AAA’s analysis partner, Anthony Johnson. He added ”Markets are so depressed in Europe, as people are still so uncertain about the region’s economic stability in the future.”
Dr Lynn told National Real Estate Investor: "Ultimately, real estate comes down to the economic strength of a country and, despite the global economic slowdown, Brazil's economy is broad and balanced and not overly dependent on export.”
Some investors are also likely to be worried that the Brazilian housing sector might crash like the US housing sector did several years back. However, speaking to Bloomberg, GTIS Partner’s Tom Shapiro insisted that he did not expect the same thing to happen in Brazil. Instead, he said that Brazil is investing heavily in factors that could drive further economic growth, like infrastructure, tourism and housing – all driven by its increasingly wealthy, young population.
AAA supports real estate investment in Brazil, together with other types of alternative investing in the region, such as forestry investment. It supports sustainable forestry projects such as the teak and eucalyptus plantations managed by firms like Greenwood Management. The plantation project is hoping to benefit from the housing boom in Brazil through the growth of timber used in new sustainable homes.
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