I work and live in Europe, with my Brazilian girlfriend who studies our language. 1 euro trades for 6.16 reais today, which is historical. We are preparing a life here, saving money to buy a house. But if the real keeps falling (let's say 7-8 reais for 1 euro or worse) I think it becomes very interesting to buy real estate in Brazil. In her name, because she holds the nationality and has her own property there. We are not married yet.
She bargained for the price of her own apartment and got it down to 350 000 reais, à vista (no mortgage) about 5 years ago. The asking price was 500 000, but you get much better deals when you can buy without a mortgage.
When 350 000 reais represents about 50 000 euros (not impossible with the real coming down so fast) I consider buying an other apartment à vista in Sao Paulo and renting it out. We would make some money as rental income but I think the true value comes when the real regains purchasing power and becomes stronger to the euro and dollar. If it gets back to 3.5 reais for a euro, my euro investment is doubled when I sell.
Do you think this is a good idea? Are there rental companies out there, securing that tenants pay rent to the landlord each month? That there is no damage to the property?
Is it a good idea to buy 50 000 euros worth of reais and just hold on to the currency?
Can we trade euros for reais at this point without Brazilian banks taxing the shit out of us?
About 6 years ago there was a similar situation in Argentina. Their peso traded at 13 pesos for a euro but the bank would only give me 8. So I took my cash to the street and got the real value there.