Why Brazil is not being affected and even more so why is the Northeast
of Brazil so interesting?

Brazils economy remains stable even though some of the Worlds
strongest economies are crumbling.

Early reports state that Germany is entering into recession as well
while GNP of Brazil is growing, inflation is not on any kind of
significant rise and real estate sector is recording some of the best
times in the history of the country.

Brazilian exports are solid (Government is steadily trying to control
the value appreciation of the U$Dollar and Euro to help these entities
with credit options and I must add doing a decent job not that they
require too much assistance), alternative energy and fuels sector
(super interesting with American Investors taking the gold medal for
largest and most investments performed) is literally booming and
farming is exceeding expectations. It is not such a bad idea to invest
in the stock of the publicly traded companies that deal with export.

Car industry has blown out of proportions. The wealthiest man from
India (he is responsible for more than 35% of the countrys economy)
is setting up multiple plants & factories. This is the place where GM
is doing very well (third national placing) and there is much room to
maneuver.

People that have invested early on like Warren Buffet, Samuel Zell,
Bill Gates, Bill Clinton, Donald Trump and others are now reaping
their fruits of labor (investing is work too �). Why on Gods Earth
would they invest in the Northeast of Brazil region?

Why the Real Estate Sector?

Many different variables to be examined but we do neither have the
time nor the merit to discuss all.

Let us focus instead on what we know and the facts.

There is a large deficit in the construction industry for residential
units since the average Brazilian is enjoying more power than ever and
new jobs are springing up everywhere to sustain the growth.

Two major banks just have had a merger €“ Itaú & UniBanco to create the
largest and strongest financial institution in the country surpassing
the state owned Banco do Brazil. This is assuring the flow of credit
products and availability besides new products being assimilated into
the market.

The foreigners are buying so much of the properties in the Northeast
of Brazil that the locals are calling it the Foreign Invasion while
the number crunchers are calling it a tidal wave. These are mostly
large Mega-Developers of golf/resort/residential Ocean Front Beach
Front developments being bought up by Europeans and Americans alike.
However, what is different this time around that Asians, Middle
Easterners, Russians and Indians are investing as well. Your single
property buyers are flocking to purchase their piece of Brazil as
vacation, second home, stress buster, getaway, retirement properties
are being sold in astronomical quantities. Evading the cold winters,
everyday stress and the smoggy, fast paced lifestyles of the urban
cities of the highly developed countries they are seeking further &
calmer destinations like Northeast of Brazil instead of the over
saturated and overrated Portugal, Spain, Bahamas, Caribbean,
Bulgarian, Croatian, Egyptian and Moroccan locations. We cannot blame
them, really, for trying to relocate their assets to a place where it
is summer nearly all year long (335 sunny days), a new popular
destination, receptive culture and much lower cost of living type of
place. Your small €“ mid size investments may include hotels, resorts,
small commercial and industrial investments are more common every
month, farms (anywhere from sugar cane, biodiesel plantations, fruits,
to rice patties and bean plantations) and as well as the larger
investor they are seeking land for development for Beach Front
residential/vacation/rental/retirement units.

We must agree that with the current global situation they are more
than successful. Investing in the same sector of these companies
shares of innovative, established ones with a go-getter type attitude
is definitely a no-brainer, no-miss mid-term to long-term experience.
Even with little knowledge of the country, language and culture
anybody could become profitable in this low-no-risk real estate
environment.

The country has received record numbers of foreign capital inflow in
its history and for these reasons continuous expansion and incline in
value appreciation of allocating assets and pouring capital will
unlikely come to a sudden halt.

To watch a video of what Goldman & Sachs has cooked up about Brazil
and other BRIC Countries:

http://www.youtube.com/watch?v=8LCdneEuVAA

If this was of interesting reading to you and to research and learn
further you may join us at:

http://groups.google.com/group/investinbrazil

Thank you for listening,
Warmest Regards from a Chicagoan in The Land of the Sun,
Northeast Brazil,

Martin Gajewski Jr.,
Offshore Investment Consultant &
International Property Broker