Question 1

Is it better to buy or rent in Sao Paulo in 2025?

Accepted Answer

With the Selic interest rate above 10%, renting is often financially superior. You can rent a property and invest the capital (or down payment) in fixed income (CDB/LCI) to earn ~1% per month risk-free, which usually covers the rent and leaves a surplus.

Question 2

Can foreigners buy property in Sao Paulo?

Accepted Answer

Yes. Foreigners can buy urban property with the same rights as citizens. You mandatory need a CPF (Tax ID) and usually need to bring funds through a registered exchange broker relative to the Central Bank (RDE-ROF).

Question 3

What is the average rent in Itaim Bibi?

Accepted Answer

For a high-standard 2-bedroom apartment, expect to pay between R$ 6,000 and R$ 9,000 per month, plus Condominio fees (R$ 1,500+) and IPTU tax.

Question 4

What is the 'Selic Trap' in real estate?

Accepted Answer

The 'Selic Trap' refers to the opportunity cost of buying real estate in Brazil. When the Selic rate (risk-free rate) is 14%, a property yielding 5% in rent is a losing investment. Cash in the bank earns nearly 3x more than property.

Sao Paulo: The 14% Risk-Free Loophole