Consumers send over £30 million to Brazil to buy property
£30.1m was sent to Brazil from the UK in 2009 for property related purposes, according to leading foreign exchange supplier Moneycorp, up from just £4million in 2004. 2010 has started even more strongly: since 1 January 2010, Moneycorp says that real estate enquiries have increased 40% on last year.
A new service launched at the end of last year by Moneycorp shows that Brazil is increasingly coming on to the radar for British property buyers. The service is revolutionising the way foreigners can move money into Brazil. Moneycorp has formed a partnership with Brazilian bank, Banco Rendimento, to offer a hassle free international money transfer service which can be offered to British clients purchasing property in Brazil. Since its launch in October 2009, Moneycorp has completed hundreds of foreign exchange transactions on behalf of customers.
Moneycorp fixes the Brazilian real rate of exchange so buyers and investors know exactly how many reals will be delivered into their bank account – and when. The service reduces the time between transfer and receipt of funds and guarantees that each transaction will be registered with the Central Bank to facilitate the future repatriation of funds.
Sending money to Brazil is not an easy process and can be problematic. The Brazilian Real is a restricted currency and cannot be sent into Brazil. Clients have to send another foreign currency into the country which has to then be converted upon arrival – usually at a poor rate of exchange. Money sent to Brazil must be registered with the Central Bank of Brazil (Banco Central do Brasil). If a client does not correctly register their money, complications may arise when the time comes to repatriate their funds. Transfers are also often slow and securing a guaranteed delivery date can be difficult. It is estimated that UK investors and property developers can lose out on up to £5,000 - £10,000 on large money transactions.
Moneycorp’s partnership with Banco Rendimento makes it easy for British buyers and investors to open a local ‘non-resident’ Brazilian bank account from the UK. Rental income from investment property, for example, can then be received in the local real currency.
Vasilios Dimarakis, Head of Overseas Operations for Moneycorp, says, “The Brazilian Real Service is helping our clients get the best deal possible when looking to invest in Brazil. This is something practical that people can do to maximise the value of their investment and not waste their hard-earned cash. Our Brazilian service removes all of the complications that can arise when transferring money to Brazil and, at the same time, saves our clients a lot of money.”
Dimarakis continues, “We are keen to work with agents and developers with an interest in Brazil and also IFA’s who might be advising clients to invest in Brazil. We offer a number of incentives to such partners and guarantee that we will offer a high level of service to their clients.”
Moneycorp partners receive referral fees for every transaction that their clients make through Moneycorp. They receive automated notification of clients’ transfers so they know when clients have purchased currency. They are also assigned a dedicated Account Manager to help in dealing with clients’ requests. Moneycorp also organise various networking events throughout the year for their partners.
Paul Clarke, Managing Director of Invest In Brazil and partner of the Tambaba Country Club Resort in Brazil, comments, “Thanks to Moneycorp, the Brazilian property market is now an accessible and attractive investment option for Western developers. The excellent exchange rates and fast transfers that its service offers have made the transferral of money to Brazil incredibly easy and stress-free.”
Vasilios Dimarakis will be chairing a panel entitled ‘Practical aspects of transferring financial resources to Brazil’ at Nordeste Invest 2010 to be held 10-12 May in Natal, Brazil. The event, recognized as the most important event in real estate and tourism in Brazil, is in its fifth year and is organised by ADIT Nordeste, the Brazilian Government-backed non-profit association for real estate and tourism development in the Northeast of Brazil.