Latin Americans have always had a good name for attracting hot blooded young males. Over the past few years though this has expanded into becoming a top destination for property investors due to changes in the economy and political stability.

While in the past countries like Mexico, Brazil, Panama, Venezuela and Argentina had their own little (and big) devils to fight when it came to stability, security and corruption, in today’s reality they all got something many want.

Namely great priced properties with a fancy lifestyle, gorgeous scenery and friendly locals.

If that alone isn’t enough to convince you, then read on and discover a whole new world of affordable property investments in the eternal sunshine.

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England football legend, David Beckham will be opening the first “David Beckham World of Sport,” complex in Natal, Brazil, to coincide with their hosting of the 2014 World Cup. This will be part of a bigger resort, which will include a “Rubens Barrichello motor racing school,” but no plans for a “Spice Girls’ academy of dancing,” as far as we know just yet.

Beckham has already set up professional sports academies in both London and Los Angeles. Whilst in Brazil for the launch, he said, “I am honored to be associated with this incredible project which will build world-class sporting facilities in Brazil, hopefully having a major impact at a local level and internationally”. Beckham hopes to give opportunities to gifted but disadvantaged children, rather than teaching them how to play the game. Although perhaps Mr. Beckham could learn a thing or two from some of his young charges judging by his recent performances.

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As more and more well-developed overseas property markets reach saturation point, British property investors are starting to look further and further afield in the search for likely investment opportunities. South America, despite some political and social issues still to deal with, offers those opportunities. South America, like many other emerging markets sees the benefits of foreign investment and the governments are taking steps towards creating a more hospitable investment environment.

A Million Dollars. It certainly sounds like a lot of money. Just say it out loud: “A Million Dollars,” now say it slowly, “A Million Dollars.” It still sounds like a lot of money, but what will a million dollars buy in London, Europe or Africa or South America? As I began researching this article, the phrase, “One man’s meat is another man’s poison,” came to mind. Obviously, some countries vary widely from area to area, but here are some interesting properties for sale from around the world that all have the same price tag – A Million Bucks.

London. In London, one million bucks will secure a 3 bedroom flat in W6, a short walk from Hammersmith Broadway. This particular flat is offered by Foxtons and comprises one reception room, kitchen, three beds and one bath over 87 m sq. Leasehold with a share of the freehold.

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We all know about the tropical climate and the locals’ penchant for carnival - Brazil, after all, is one of the world’s most glamorous, exotic destinations. But recently, the visitors have shown a desire for more than just a week in a hotel - they’re eyeing up the property market, too, and the trend has spread so fast that even the country’s most famous son, Pele, is getting in on the act.

None of this is accidental. Back in 2003, the Brazilian government decided one way to save the country’s weakened economy was to encourage tourism. They set out a plan to attract around nine million visitors each year and began improving coastal resorts and infrastructure in key areas, such as Natal on the north-east coast.

The plan succeeded and the number of tourists rocketed. But what the ministers may not have foreseen was quite how many visitors would be so blown away by the country’s fabulous beaches, friendly locals and low-cost, laid-back lifestyle that they’d choose to buy property there.

From the UK, it takes around eight hours longer to fly to north-east Brazil than it does to Spain or Portugal, but British buyers are beginning to flock in, and property that a few years ago was selling for less than £20,000 has more than doubled in value. In fact, the area’s become such a magnet for overseas investors that even legendary footballer Pele is getting involved. He recently helped launch King’s Flat, a development of 32 luxury, beachfront apartments at popular Ponta Negra beach, on a plot of land he was given after helping to win the 1970 World Cup.

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US investment firms are setting their sights on the Brazilian real estate market, lured by economic fundamentals.

SAO PAULO — From the middle-class residential market to the A-class office space segment, the real estate sector is going through a period of intense business activity that has not been seen for a long time. The lasting decline in domestic interest rates coupled with low inflation and high liquidity in the international capital markets have led investors to take a closer look at the giant Latin American market.

Those who had injected a large amount of cash in Mexico in the beginning of the decade are now keen on seeing Brazil as their next big move.

“It’s really like a tsunami coming,” says Paul Weeks, head of capital markets at Cushman & Wakefield in São Paulo. “For years and years, we have been waiting for foreign investors. In the past six months, they have been coming like in a tidal wave. There is so much money coming in this country.”

SAM ZELL BUYS

Take Sam Zell. The U.S. billionaire has recently gone on the shopping spree after selling Equity International at home. In a few bold moves, he has already won back its initial bid, such as in the transaction with Gafisa, a high-profile building company in São Paulo. Only months after he bought a 32 percent stake for $55 million, he reduced it to 27.7 percent and got his money back. He then acquired a 14 percent stake in Ecisa, the owner of seven shopping malls in the country, which he later increased to 55 percent in partnership with GP Investimentos, a local private equity fund. Last June, he launched his most ambitious move with Bracor, a joint venture with a local investor, Carlos Betancourt. Bracor initially planned to invest $200 million in industrial and commercial buildings, but it already intends to spend another $120 million within two years.

Investors who have had a taste of the Latin American potential in Mexico are now increasingly turning their attention to Brazil, as the economic fundamentals look sound enough.

”Sam Zell is a bit like Bill Gates,” Week says. “When he goes into the market, people usually follow him like sheep.”Credit Suisse, Lehman Brothers, Bear Sterns, Merrill Lynch are all ready to step in, he says.

MORGAN STANLEY FUND

And Morgan Stanley Real Estate has just launched a $200 million fund focusing mainly on the residential segment. Foreign investors were also responsible for 75 percent of the funds that were raised as part of last year’s eight IPOs in the sector, including Gafisa, GP Investimentos, and São Carlos Empreendimentos e Participações.

Significantly, GP announced the launch of a new company, BR Properties, on January 2nd, in partnership with Banco Safra and foreign investors (Lehman Brothers Real Estate Partners, Sandell Asset Management, Tudor Group, Talisman Fund and The Peter Malkin Family and Belfer Management). The company, which is to focus on commercial office space, has an initial capital of $25 million that is due to be increased to $100 million at an unspecified date.

Meanwhile, São Carlos has already been responsible for one of the largest transactions in the commercial market. The company, which was launched by Jorge Paulo Lemann, Carlos Alberto Sicupira and Marcel Telles - the owners of the popular retailer Lojas Americanas - acquired almost half of the Eldorado Business Tower, a 32-story state-of-the-art building being built in São Paulo.

Foreign investors will increasingly seek to control entire buildings, according to market analysts. With a 14 percent vacancy rate in São Paulo, the main office market in the country has now recovered from the crisis of the past five years (in 2005, the vacancy rate hit 20 percent) and is now ready for take-off. Prices of A-class office space are still only at the level they were in 2000, but they should keep on increasing as the vacancy rate is expected to fall again this year.

Source: Latin Business Chronicle