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Favourable Finance for Resale Real Estate in Brazil | Obelisk International News Terms for preferential mortgages are now in place for resale Brazilian property. Similar to loans for the Minha Casa Minha Vida social housing programme, the favourable finance will allow thousands more Brazilians to have access to homes. Minha Casa Minha Vida has been a highly successful means of reducing some of the deficit of real estate in Brazil. However, even the programme’s three million properties fall way short of fulfilling demand among middle class Brazilians to own a home. To help alleviate this demand, Caixa Economica Federal – the government bank financing the Minha Casa Minha Vida scheme – has introduced preferential mortgages for middle class families. These mortgages come with no subsidies but they are based on the same eligibility criteria as the social housing programme and carry very favourable interest rates. Qualifying Conditions To qualify for preferential mortgages for a resale property, families must be resident in the locality where they are buying and their minimum monthly income must be R$465. The maximum income ceiling permitted is R$4,900 a month in metropolitan areas and cities with over 250,000 inhabitants. 100% finance is available up to a maximum property value of R$500,000 and interest rates for these new Brazilian mortgages range from 4.5% to 8.16%. The financing conditions are the same for all qualifying families with the only variable being the interest rates. These are based on a sliding scale – mortgages for properties valued between R$70,000 and R$80,000 attract the lowest 4.5% rate. Boost for Resale Property In Brazil, the social housing programme is aimed at low-income families buying new build properties. Since Minha Casa Minha Vida was introduced in 2009, resale Brazilian properties have been excluded from any government deals. Until now – this new Caixa scheme is aimed specifically at families purchasing resale homes. Obelisk International believes that these preferential mortgages will be key in activating this sector of the Brazilian real estate market. Obelisk International CEO, Gary Hardacre is convinced that the new Caixa mortgage deals will open up the resale market to lower middle class Brazilians. “This area of the market is currently under-exploited because of high mortgage interest rates,” Mr Hardacre explains, “and we expect to see a surge in resales to these families over the next few months”. Obelisk International also predicts a range of investment opportunities to emerge on the back of these favourable financing terms. “These mortgages will create a ready-made exit strategy for resale Brazilian properties in many parts of the country,” says Mr Hardacre, “mirroring the exit strategy available for Minha Casa Minha Vida homes.” For Obelisk International, an on-tap market plus finance provided by Latin America’s largest public bank are fundamentals behind the success of real estate investment in Brazil. Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com. Follow us on Twitter, Facebook and LinkedIn.

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Favourable Finance for Resale Real Estate in Brazil | Obelisk International News