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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (24789)	3/3/2005 10:15:37 AM
From: THE ANT	Respond to of 116555

I think if one is looking at real estate you have to look where interst rates are high and mortgage mkts undeveloped.Even in this situation,such as Brazil,one must be carefull in situations where there is a high level of inputs of steel and cement as these prices are set mostly by the world mkts.If you dont need income building lots might be a better deal while awaiting Mish's deflationary scenario and the build when inputs decrease. If one is looking for income there are many Brazilian construction co's that are putting up hotels where you can buy individual rooms in construction that return 1-3% a month depending on occupancy.This return is quite reasonable in Brazil as can be noted from the paragraph in the Brazilian agricultural website Russ posted yesterday: There is another reason why cerrado land sells for significantly less than US or Western European farmland producing an equal or even lower net return. Brazilian farmers and investors demand a high return on their investment. There are no government subsidy programs, interest rates are high, credit is limited or unavailable and a long history of high inflation makes investors wary of government policy. Inflation is now under control, but investments that do not have the potential to return at least 25 percent per year are rejected out-of-hand by Brazilian farmers and investors. One company I deal with Arco Engenharia has projects on the ocean,in agricultural regions ,in mining regions,or in the city of Belo Horizonte which is the capital of Minas Gerais the main mining state in Brazil.Minas Gerais by itself has an economy larger than Chile. They just finished the only 5 star hotel in Macae,the city where Petrobras works out of.The advantages of this type of investment is that everyone with a room in the hotel is looking after their interest,which happens to also be yours.Profit is divided equally no matter which rooms are rented and return depends upon hotel occupancy rate. arcoengenharia.com.br

To: mishedlo who wrote (24789)	3/3/2005 10:15:38 AM
From: THE ANT	Read Replies (1) \| Respond to of 116555

I think if one is looking at real estate you have to look where interst rates are high and mortgage mkts undeveloped.Even in this situation,such as Brazil,one must be carefull in situations where there is a high level of inputs of steel and cement as these prices are set mostly by the world mkts.If you dont need income building lots might be a better deal while awaiting Mish's deflationary scenario and the build when inputs decrease. If one is looking for income there are many Brazilian construction co's that are putting up hotels where you can buy individual rooms in construction that return 1-3% a month depending on occupancy.This return is quite reasonable in Brazil as can be noted from the paragraph in the Brazilian agricultural website Russ posted yesterday: There is another reason why cerrado land sells for significantly less than US or Western European farmland producing an equal or even lower net return. Brazilian farmers and investors demand a high return on their investment. There are no government subsidy programs, interest rates are high, credit is limited or unavailable and a long history of high inflation makes investors wary of government policy. Inflation is now under control, but investments that do not have the potential to return at least 25 percent per year are rejected out-of-hand by Brazilian farmers and investors. One company I deal with Arco Engenharia has projects on the ocean,in agricultural regions ,in mining regions,or in the city of Belo Horizonte which is the capital of Minas Gerais the main mining state in Brazil.Minas Gerais by itself has an economy larger than Chile. They just finished the only 5 star hotel in Macae,the city where Petrobras works out of.The advantages of this type of investment is that everyone with a room in the hotel is looking after their interest,which happens to also be yours.Profit is divided equally no matter which rooms are rented and return depends upon hotel occupancy rate. arcoengenharia.com.br (click fotos)