Transparency and Rigorous Due Diligence

Once an investment is selected, all relevant information is available to clients. This includes:

• an investment summary providing a snapshot of the Brazilian investment.
• a personalised and in-depth presentation (by video conference or telephone) with feedback session to answer any queries.
• a comprehensive Business Plan with financials providing full information on the investment.
• a Frequently Asked Questions document.
• an independent due diligence report.

At Obelisk International, we understand that Brazil represents an unknown market for many investors. Investment consultants at Obelisk International are therefore readily available to answer all queries about our Brazilian investments and provide further information.

Investment Extras

Additional research tools are also available for investors unfamiliar with Brazil. For a general overview of Brazil and the investment possibilities there, Obelisk International provides a free guide to investing in Brazil .

Investors are free to visit Obelisk International's property investments in Brazil where our associates will be happy to show you around our projects. Please note, however, that we cannot assist with flights or accommodation.

Risk Assessment

Obelisk International is well aware that there are risks associated with all property investments. Most risks are common to all real estate investments regardless of their location while others are country-specific. Brazilian investments are not without risks, although Obelisk International’s due diligence and market research is designed precisely to reduce those risks to a minimum to ensure maximum security for our investors.

Brazilian investments may present the following risks:

Investment in emerging markets – Brazil is one of the world’s largest emerging markets and together with Russia, India and China forms the so-called BRIC economies. These economies are characterised by their recent strong economic performances and their potential to overtake developing markets. Emerging markets are relatively new to the investment world and as such, have short track records on which to base investment criteria. Not all emerging markets are politically stable or democratic states. However, Brazil has a well-established democracy that actively encourages foreign investment as was confirmed in the recent presidential elections.

Currency fluctuations – all investments in a currency other than your own involve the risk of fluctuations. Even those currencies traditionally considered as ‘stable’ such as the pound sterling and US dollar are subject to frequent changes. These variations mean your investment may lose or gain value. The Brazilian real (R$) has strengthened considerably against the US dollar over the last year allowing considerable gains on investments. Analysts generally expect this tendency to continue, although this is not guaranteed.

Taxation – each country has its own and often complex taxation system. The systems are also subject to change. When making a property investment abroad you should take advice from a financial adviser on the tax implications both in the country of the investment and your home country where you may be liable for capital gains tax or income tax on the investment. Profits from all Obelisk International’s Brazilian investments are tax exempt in Brazil, but this exemption may not apply when you transfer the funds to another country.

Non-fulfillment – all investments carry the risk of non-fulfillment and investments in Brazil are no exception. The provision of security is paramount to safeguard your investment and full due diligence should be carried out to ensure this is possible. Investors should make sure that there is provision for a claim against the investment (e.g. company assets or land) should the investment not be realised.

Obelisk International strongly recommends that investors take expert legal advice when making an investment in Brazil.