Brazilian Investment in Social Housing News | 19th May 2011 The Brazilian social housing programme Minha Casa Minha Vida is evolving as it enters its second phase. The latest adaptations mean more Brazilian families will be able to benefit from this huge government investment in Brazilian real estate. With the Minha Casa Minha Vida budget approved by the Senate for 2011, the government expects to see 300,000 homes delivered this year. This big injection into the Brazilian property market means the programme is well on track to fulfilling its objective of 3 million homes by the end of 2014. More Benefits for Buyers After announcing the budget approval, the Housing Secretary Ines Magalhaes also revealed the latest changes to the Minha Casa Minha Vida (MCMV) programme. Although these changes are small, they are highly significant â€“ not just for Brazilian families but also for developers making investment in this niche sector of the Brazilian real estate market. Low-income families are particularly targeted in the second phase of MCMV. 60% of social housing units will now be allocated to families whose monthly income is less than R$1,395. Subsidiaries of up to 95% are available with minimum monthly paybacks of just R$50 over 10 years. These exceptional terms will allow thousands of families to enter the property market in Brazil and fulfill their dream of owning a home. Better Real Estate Investment Conscious that the MCMV programme depends on companies building the units, the Brazilian government is keen to continue to attract developers of real estate in Brazil to the programme. To this end, the authorities recently raised the minimum prices on MCMV properties in Brazil to allow more flexibility in the market. In addition, under the latest announcements, MCMV developments are no longer restricted to five storeys. This will allow for more units to be built, a particularly important consideration in areas of Brazil where building land is at a premium (e.g. Rio de Janeiro and Sao Paulo). Profit margins in this sector of real estate in Brazil will therefore be higher making social housing an even more attractive investment. In addition, MCMV developments may house trade premises on the ground floors. Rent from these businesses would help finance communal costs of the developments as well as making the development more attractive to home buyers. As a developer of MCMV, Obelisk International welcomes the latest changes to the programme. Obelisk International believes the combination of better conditions for buyers and more flexibility for developers will add considerably to the benefits for investment in Brazilian social housing. We expect to see even more interest in MCMV from investors over the next few months. Contact Obelisk International on 0034 952 820 319. Via email: email@example.com or visit our website: www.obeliskinternational.com. Follow us on Twitter (Obelisk International) and LinkedIn (Obelisk International).
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Published on May 17, 2011
The Brazilian social housing programme Minha Casa Minha Vida is evolving as it enters its second phase.