News
Brazil is 'top' South American investment
Thursday 26 June 2008
Those wishing to make a financial investment in South America have been advised to focus on Brazil.
Credit Agricole Asset Management (CAAM) executive Stephane Mauppin-Higashino spoke to Reuters news agency after the country was upgraded in April to the "much coveted investment-grade status".
According to Mr Mauppin-Higashino, the country's new status had "increased the long-term earnings potential of Brazilian firms" and no doubt investors in the area.
Speaking to Reuters, Mr Mauppin-Higashino explained how investors would benefit: "It will reduce further the cost of capital on a more sustainable basis. It will attract additional flows to the country by the reduction of the risk ... that will add to the potential growth."
The asset manager suggested that in contrast the Chilean market "lacked the economic dynamism" of Brazil.
According to the Global Property Guide (GPG), rental yields in Brazil are high. A 50 sq m apartment in Sao Paolo can be expected to yield 9.6 per cent per annum.
Brazil's landlord and tenant law is "pro-landlord". The GPG said: "The initial value of the rent can be freely agreed between the landlord and the tenant under Law 8.245/91, known as Lei do Inquilinato".
Credit Agricole Asset Management (CAAM) executive Stephane Mauppin-Higashino spoke to Reuters news agency after the country was upgraded in April to the "much coveted investment-grade status".
According to Mr Mauppin-Higashino, the country's new status had "increased the long-term earnings potential of Brazilian firms" and no doubt investors in the area.
Speaking to Reuters, Mr Mauppin-Higashino explained how investors would benefit: "It will reduce further the cost of capital on a more sustainable basis. It will attract additional flows to the country by the reduction of the risk ... that will add to the potential growth."
The asset manager suggested that in contrast the Chilean market "lacked the economic dynamism" of Brazil.
According to the Global Property Guide (GPG), rental yields in Brazil are high. A 50 sq m apartment in Sao Paolo can be expected to yield 9.6 per cent per annum.
Brazil's landlord and tenant law is "pro-landlord". The GPG said: "The initial value of the rent can be freely agreed between the landlord and the tenant under Law 8.245/91, known as Lei do Inquilinato".
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