The real estate market is one of the most traditional and profitable investments around the world. However, each country has its own rules, bureaucracies, and market dynamics that directly impact profitability, liquidity, and the types of opportunities available to investors.
In the United States, the real estate market is highly diversified, with options ranging from vacation homes and multifamily properties to flipping. In Brazil, the focus is primarily on long-term rentals and the purchase and sale of off-plan properties.
These differences reflect the economic, cultural, and regulatory particularities of each country.
In Brazil, residential leases must be established for periods of 30 months or more, in accordance with the Tenancy Law. Commercial leases can have varying terms but also follow specific regulations, which require investors' attention.
In the United States, the rules vary depending on the state and even the municipality, allowing for short- or long-term contracts without a mandatory minimum period.
Furthermore, eviction laws and tenant protection regulations can be more favorable to landlords in some regions, making the market more dynamic and offering greater flexibility for investors.
Bureaucracy in Brazil is a factor that can delay and complicate real estate transactions. The purchase and sale of properties require the issuance of a public deed, registration at a notary's office, and the payment of taxes such as the ITBI (Tax on the Transfer of Real Estate).
These procedures can increase costs and make closing deals more time-consuming.
In the United States, the process is more decentralized and streamlined, using property titles and simplified contracts, which reduces bureaucracy and enables faster transactions, especially in competitive markets like flipping.
The cost of real estate financing is one of the major differences between the two countries. In Brazil, interest rates tend to be higher, and credit conditions are stricter, especially for off-plan properties.
The financing market is dominated by state-owned financial institutions that offer specific programs but come with significant bureaucracy and less flexibility.
In the United States, the mortgage market is highly competitive, offering a variety of financing options, such as fixed-rate and adjustable-rate mortgages (ARM – Adjustable Rate Mortgage).
Interest rates are generally lower, making credit more accessible and allowing for more efficient leveraging strategies for investors.
Real estate negotiations in Brazil tend to be longer and more subjective, with a strong focus on property appreciation and greater flexibility in contractual terms. The process often involves multiple rounds of negotiation and adjustments to meet the expectations of both buyer and seller.
In the United States, negotiations are more direct and objective, with defined deadlines and a more aggressive approach to pricing.
Deal closings happen more quickly, especially in flipping transactions, where agility is essential to maximize return on investment.
Each market presents advantages and challenges for real estate investors. Brazil may offer interesting opportunities in long-term rentals and off-plan developments, but bureaucracy, high interest rates, and lower regulatory flexibility can make scaling investments more difficult.
In the United States, the market stands out for its liquidity, variety of assets, and favorable regulatory environment, enabling more dynamic strategies and greater potential for returns.
Understanding the differences between the two markets and structuring a well-defined strategy is essential to seize the best opportunities.
Want to invest in the U.S. real estate market? Upside Investment has a team of specialists ready to develop the best investment strategy for you.
Get in touch and find out how to maximize your returns safely and efficiently.
por Agência de Marketing Digital
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