Hi,
I'd like to get opinions from you experts about buying/renting in Sao Paulo. I've been here for 8 months studying at USP. Probably will stay for another 2-4 years minimum. I've been staying in a flat so far, 1600R$ a month.

I've been looking to rent an apartment in the Pinheiros area for 2-3 weeks. Prices are shockingly high. A studio, meaning one room with no real kitchen, is about 1800-2000R$ a month.

This led me to look at prices to buy. Seems like a 1 or 2 bedroom, in a decent building, will go from 220-270kR$. Comaparing to the renting price, this is very cheap. I assume the value will even go higher after the yellow metro line opens.

So, do you think this would be a good investment? I don't really have the money, so I'd probably have to go with a personnal loan in Canada + some money from mom/dad. Interest rate would be quite high, but since the total price is rather low, I still think it's better than renting!

Anyway, I'm open to any comments,

Dave

Indeed exchange rates complicate the sums.

As far as real estate prices in R$ are concerned: they went up a lot in São Paulo over the last few years thanks to economic growth -> growth of middle class -> growth in demand for housing.

The question now is: will this trend continue? Economic forecasts are positive for Brazil, so the trend should continue (possibly at a lower rate), but, alas, economic forecasts are no garantee.

Taking capital out of the country is a bureaucratic hassle, I have been told (I haven't tried myself). Maybe something to take into account if planning for temporary investment in Brazil.

Hi,
Thanks for the replies.
You are right, the cheap way to rent a place here is to only rent a small room in a rather small apartment. However, I'm a bit older and would prefer privacy. I've been doing the roommate thing for 10 years, and would like to move on!
Then when you look at renting a 'nice' 1 bedroom, things get ridiculous.
Example:
http://www.lopes.com.br/ficha-imovel-terceiro/pinheiros/sp/sao-paulo/pinheiros/apartamento/900064045

Then add about 10% security (which doesn't come back to you at the end), and probably IPTU of 80R and you're at 2500R$per month. Ok it's a 'nice' place, but still pretty small! Nothing that luxurious! I wonder how brazilians can afford this, but the agent always tell me that everything gets rented very fast...which makes me wonder why they don't buy the place!

You are right about the risk of the R$ going down. I think this only becomes a real problem if you need to sell quickly. However, the price being around 200k$ makes this risk not THAT bad...
It is still quite cheap and I guess it would always be possible to wait and rent it instead of selling in a rush.

Say I have the 200k$ in CDN$ at home. Can I bring this in Brazil under the radar or I'd have to pay a ton of fees/taxes?

Thanks a lot.
Dave

Found this on Craigslist:

Originally posted by Larry LaRose Buying in Pinhieros is a slam dunk positive investment. The Canadian dollar will continue to strengthen throughout 2010.

I'm not sure I follow.. If the Canadian dollar will strengthen with respect to the real, how is that a compelling reason to purchase an apartment in Brazil now?