Florida wealth dollarization ensures economic stability, expert says

By KROW REAL ESTATE INTELLIGENCE

10/11/2022

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Diversification is one of the most reliable ways to protect your assets. This strategy can be based on investing in different assets or in different currencies. And if it is possible to combine the two strategies, the protective effect is even greater. Therefore, investing in real estate outside Brazil, especially in Florida, which has high appreciation and profitability, is an excellent option. The US dollar is the most popular currency in the world and, as a result, is a reference in international trade.

“Dollarizing is always a good strategy, because your investments become much healthier when you distribute them in different currencies, especially those that are stronger than the one you earn your income from. This makes perfect sense according to several economists who suggest this strategy,” explains Gabriela Kroning De Conti, from Krow Inteligência Imobiliária, who specializes in high-end real estate investments in Brazil and around the world.

After the election period, many investors saw dollarization as a way to protect their capital. “And a very practical and objective way to do this is to acquire a property in the US. Investing abroad or dollarizing assets is a great opportunity. It is not only highly protective, but also has a series of other benefits: such as obtaining recurring income in the currency, appreciation of the property acquired, and amortization, in the case of financing, which is something exclusive to an international property,” points out the specialist.

Gabriela also explains that, in Brazil, most of the time, it is not possible to finance and pay off the loan with the rental income. “In the United States market, more specifically in Florida, for example, you can do this. Regarding the current situation, thinking about the American market, indexes, inflation and interest rates, we realize that we still live in a very promising market for financing interest rates for foreigners”, she exemplifies.

Why invest now?

The American real estate sector is going through a period of opportunities, with a scenario of transition from sellers to a buyers' market. With interest rates rising, the number of buyers has decreased, and as a result, construction companies are offering a series of bonuses and are open to better negotiations. Buyers have much more power to find a great opportunity.

Gabriela also emphasizes that the interest rate currently does not pose a threat, because unlike in Brazil, in the US it is possible to refinance. "Interest rates have decreased, it is possible to refinance. Take advantage of the high interest rates to find a better opportunity. Dollarizing your assets is always a good investment. Thinking in the medium to long term, this will give the investor peace of mind, a differentiated return, an increase in their assets and their protection," adds the expert.

In Florida, growth rate is second fastest

Orlando's growth rate is the second fastest of any major city in the U.S. And now, Brightline is on its way to connecting Orlando and Miami with a direct train line.

The construction of this line will create over 10,000 jobs and generate $650 million in federal, state and local tax revenue during the construction process. In addition, there will be an economic impact of $6.4 billion. According to initial projections, Brightline could accommodate up to nine million passengers annually once completed, with over one million coming to Disney alone.

Reasons for dollarizing your assets:

• The US dollar is the most widely accepted currency in the world and a reference in international trade. The “dollar standard” is consolidated in the global economy. More than 60% of all foreign exchange reserves in the world are held in dollars;

• The United States is the richest nation in the world with a GDP of $21 trillion. The American economy alone accounts for almost a quarter of all global output;

• The safest, most solid and profitable way to dollarize your assets is by buying a property in the United States. Unlike the stock market, real estate is a low-risk investment;

• You can still leverage the investment using resources from American banks to purchase (low interest and 30 years to pay);

• With the rental income, it is possible to pay off the financing installments and the total monthly expenses of the property, making a profit on the transaction. In this case, it is only necessary to pay the down payment (20% to 30% of the property value). To finance through American banks, it is enough to prove income in Brazil.

For Forbes, Orlando is an excellent option for investors

This year, Forbes Magazine published an extensive article indicating Orlando as an excellent option for investors and one of the best American cities to invest in. The booming American economy makes this a safe and profitable investment profile.

The Local Market Monitor, a ranking that analyzes more than 300 real estate markets, with housing indicators and growth trends, highlights the Orlando real estate market with an annual growth rate of 35% over the next three years and an accelerated appreciation of real estate values. But how can you make a profit with a home in Orlando?

Gabriela explains that, first, it is necessary to understand that the prices and conditions for buying a house in Orlando are really attractive. “And the city is magical, with great infrastructure and a mild climate, with 75 million visitors per year. It is among the most visited cities in the United States. With a house there, in addition to the high property value, you can profit from two rental types: long-term contracts, which are longer contracts for those who live or work in Orlando, and short-term contracts, which are seasonal or even vacation rental options,” she specifies.