Now is the time to Invest in Latin America’s Tourism Boom
Latin America’s Tourism Boom continues. According to the UN’s World Tourism Organisation (UNWTO), tourism is the 3rd largest export in the world, with international sales worth more than the food or auto industries. The number of international journeys made each year globally has jumped from 25 million in 1950 to more than 1.2 billion. That exponential rise in international trips has created an ever-expanding tourist industry that sees $4 billion spent daily. The tourism juggernaut shows no sign of stopping…
Have $1 billion to invest? Buy agricultural land is Lord Andrew Hay’s advice
For a man with information on prime properties across the globe, Lord Andrew Hay can separate the wheat from the chaff. And that’s why the wish list of the global head of the residential division, Knight Frank, like many of today’s high-net-worth individuals (HNIs), involves investing in agricultural land. Security plans The regions that have found favour are Australia, Africa and South America, according to Hay. “We are losing 10 million hectares of productive land each year. There will be a food shortage…
Southern hemisphere farmers will struggle to meet milk demand growth over next five years
According to earlier Rabobank research, southern hemisphere farmers will struggle to produce about 20 billion litres of milk needed to feed the world’s demand growth over the next five years. Rabobank dairy analyst Emma Higgins said that most of the extra supply would need to be met by the northern hemisphere. “Countries like New Zealand will really struggle to be a significant player in providing the additional milk required given they are facing challenges on-farm in the form of increasing…
Brazilian Real Estate Law
1. Real Estate Law 1.1 Please briefly describe the primary laws that govern real estate in your jurisdiction. Laws relating to leases of business premises should be listed in response to question 10.1. Those relating to zoning and the environment should be listed in response to question 12.1. Tax-related should be listed in response to questions in Section 9. The Brazilian Civil Code provides that real estate ownership may be acquired by either acquisition, adverse possession, accession or…
The Problem: Property Not Selling? Maybe we can help
There are several reasons why otherwise prime real estate gets no interest from qualified buyers. Is it priced for the market conditions? ( market values keep changing up and down ) Is it easily accessible to be viewed? Is it being advertised in the logical target markets? Does the quality of marketing represent the quality of the property? ie is it repressed by high-quality media that has been edited professionally? Here is an example from Cafayate, Argentina. Is the real estate salesperson experienced in…
Latin America: agricultural perspectives
A profile of Latin American agriculture Latin America has long been associated with the production and export of a diverse range of agricultural commodities, whether it is coffee from Brazil and Colombia, beef from Argentina, or bananas from Ecuador. Trade data show that the region is indeed an important net exporter of agricultural commodities to the world, accounting for an estimated 16% of global food and agriculture exports between 2012 and 2014, while representing just 4% of global food and agriculture…
Agribusiness opportunities in South America’s emerging markets
If you are looking for portfolio diversification using farmland, we can show you very practical options for mid-sized and larger investors. GTSA offers options for direct and indirect opportunities for farmland ownership in emerging economies such as Paraguay, Uruguay and Peru. Farmland is an attractive long-term investment that offers current income, capital appreciation, an inflation hedge and favourable diversification that is negatively correlated with traditional asset classes such as equities. We believe…
Fears of a record-breaking global soybean harvest and insufficient demand are hurting prices
Brazil is on track for a record-high Brazilian soybean harvest in the marketing year 2022-23 (January-December 2023), based on forecasts from commodity consultancies and government-owned institutions. The likely estimate means a looming oversupply expected to remain until at least mid-2023. The various organizations’ average estimates have the world’s top soy supplier producing a record 152 million tons of soybeans in MY 2022-23, up 20% year-on-year. S&P Global Commodity Insights projects the Brazilian…
What can happen if you buy a new apartment off the plans and the area is less than what you paid for
Many apartments in Argentina and elsewhere are sold off the plans (en pozo), and usually, this goes smoothly. However, occasionally, there is a discrepancy between the m2 paid for and the number delivered. Sometimes there are more and sometimes less. However, this Buenos Aires buyer did not take this lying down. He sued and won for the missing metres. Paola U. bought a department in the neighbourhood of Belgrano in mid-2011. When it was delivered, the property had fewer square meters than what the construction…
The dirty secrets property syndicate managers don’t want you to know!
Property Syndicates have become popular worldwide, but they are not all equal. Each has a defined proposal and time frame (or should have). Here is an Australian analysis showing what to watch out for. I hope to enlighten potential investors about the tricks used by property syndicate managers to ‘window dress’ their performance. Some of these tricks can be backed out, and where possible, I have provided the math below. Before we begin, let’s define and recap the role of Index Funds ( REIT). Index Funds…
Are Performance Fees Fair for Syndicate Investors?
The Argument Against Performance Fees If fund managers and syndicate managers do not outperform their benchmark, they continue to get their standard fee, even if they have to forego their performance fee. We like performance, but we do not like performance fees. There are fund managers, who charge a fee for management, but then on top of that, they charge another fee if they get returns above a certain level. We object to these “performance fees”. Some fund managers will say they should have a performance…
Entering South America – 7 Essential Tips to make your life easier
Our top tips are based on our experience assisting hundreds of companies enter the Latin American Region and are directly relevant to many of the legal and operating issues which you are likely to encounter. Understanding the different issues will be the difference between a successful entry or one that is filled with stress and problems. Tailor your Company’s constitutional documents
A company’s articles of association set out the formalities relating to the composition of the board of…
Brazil is an Agricultural Powerhouse
Brazil is the world’s largest producer and exporter of sugar, coffee and orange juice, as well as the largest exporter of beef, soybeans and poultry. One in four grains consumed in the world is produced in Brazil. More than 5 of every 10 glasses of orange juice drunk worldwide come from Brazilian oranges. Brazil’s beef cattle herd is 8 times the size of Australia’s. Brazil’s rise to agricultural superpower status has been underpinned by rapidly increasing efficiency in utilising production factors,…
💰Top 10 Factors Affecting Estancia’s (large farms) Value
The valuation of an Estancia and finding the price per hectare is substantially different than other types of real estate. While residential and commercial real estate prices typically rely on data based upon numerous transactions within a defined market area that can be defined as “comparable sales,” most Estancia sales are not published on any database, and there are relatively few transactions that close within a two-year time frame, and there is no defined market area. Due to the uniqueness of ranches,…
A New Real Estate Marketing option for Independent Brokers and Vendors
We offer an option for independent brokers and private Vendors to market their Residential real estate or Agricultural related businesses for sale outside their home location. For nearly 20 years, GTSA – Marketing has been marketing individual properties or projects for vendors and independent brokers without being involved in the sales process. This is in response to the effects of disruptive technologies available to sellers. We did this where we had no licensed sales support in the area or region and/or…
