The benefits of social housing investments | Minha Casa, Minha Vida Brazil

The EcoHouse Group has been involved with Minha Casa, Minha Vida Brazil, a government backed affordable housing scheme, for almost five years. The firm recently received some good news, in the form of a recommendation by Amanda Lamb, a well-known television property expert. This presenter picks a few markets which she believes could be good choices for investors – this year, she opted for the Brazilian property market, and encouraged investors to fund projects like Minha Casa, Minha Vida Brazil, via EcoHouse.

Minha Casa, Minha Vida BrazilMinha Casa, Minha Vida Brazil, along with the 2016 Olympics and the FIFA World Cup of 2014, has led to a dramatic rise in the construction and regeneration work in this country. Minha Casa, Minha Vida Brazil, in particular, has piqued the interest of many property investors, as it allows them to lend a helping hand to a worthy cause, whilst simultaneously earning a generous return on their investment.

Minha Casa, Minha Vida Brazil has been in operation for close to five years now, and serves as the ideal opportunity for those who prefer low-risk, high yield investments. Minha Casa, Minha Vida Brazil was designed by the Brazilian government so that families in Brazil who earn under R$5000 every month would be able to improve their standard of living. The housing deficit is still a serious problem in this country, but Minha Casa, Minha Vida Brazil has made is considerably easier for low income families to purchase high quality homes of their own. To date, approximately one million houses have been constructed under Minha Casa, Minha Vida Brazil, and another two million should be completed within the next year or so.

For those who have invested via the EcoHouse Group, Minha Casa, Minha Vida Brazil has helped them to earn some very high returns. Although the Brazilian government does not allow overseas investors to buy Minha Casa, Minha Vida Brazil properties themselves, it does permit them to fund the construction of said properties. The money they inject into Minha Casa, Minha Vida Brazil (a minimum of £23,000) is then paid back to them within either a year or three years, depending on which investment option they choose. There is a potential return of 15% for twelve months of investment, or 20% for thirty six months of investment. This investment programme is governed under UK law, and so offers investors a high level of security.

Minha Casa, Minha Vida – Eastern Brazilian States may Benefit from Housing Programme

Minha Casa, Minha Vida, or “My Home, My Life”, is the Brazilian social housing programme that has rocked the world of many low-income families. Launched in 2009 by the federal government, the Minha Casa, Minha Vida programme was created in response to the rapidly increasing demand from the 200 million-strong Brazilian population for affordable homes. Minha Casa, Minha Vida provides government funding opportunities to developers to incentivise the construction of social housing.  Minha Casa, Minha Vida also provides attractive mortgage and credit options for families seeking to buy-into the programme, and to furnish their new properties.

The Minha Casa, Minha Vida initiative was initially intended to facilitate the construction of 3 million new social housing properties within 5 years. To date, only around 1 million of these properties have been delivered under Minha Casa, Minha Vida. Whilst this is a huge step forward, the Minha Casa, Minha Vida financial support structure labours under a heavy burden of bureaucratic red tape, and this has slowed down construction programmes. It looks likely that the Minha Casa, Minha Vida programme will be extended until it delivers the full quota, which based on current progress will be at least 2018.

Minha Casa, Minha VidaInnovative property developer EcoHouse Group has sought funding from alternative sources for its developments under the Minha Casa, Minha Vida programme, and has secured private investment from abroad for its construction projects. This has allowed EcoHouse Group to successfully complete several Minha Casa, Minha Vida developments in record time, and EcoHouse are on target to create a total of 40,000 new homes for the Minha Casa, Minha Vida initiative by 2018.

Major Brazilian cities in the east of Brazil are supporting increasing numbers of people in already overcrowded urban environments. Minha Casa, Minha Vida is designed to help ameliorate some of the pressures this brings to the housing sectors in these areas. However, Minha Casa, Minha Vida is an inclusive programme that was developed with the whole of the country in mind. Minha Casa, Minha Vida developments have been springing up all over Brazil, in both rural and urban locations.

Developers like EcoHouse Group working with the Minha Casa, Minha Vida programme keep their plans for future developments under wraps. Given the excessive demand for social housing in and around some of Brazil’s largest cities such as Rio de Janeiro and Salvador however, it seems likely to the Minha Casa, Minha Vida magic will soon weave its way into the eastern states of Brazil, and the likes of Bahia and coastal Alagoas could be next to benefit. The Minha Casa, Minha Vida beneficiaries can only watch, and wait.

EcoHouse Brazil | Direct Investment Opportunities

One key concept that separates EcoHouse Group from many investment companies is the fact that there are no third parties to rely on, EcoHouse are the land owner, developer, constructor and realtor and investors are putting their money directly to work with them. As such, they provide a unique opportunity to profit from a direct investment with a developer in a secure way and with an assured exit.

Brazil is undergoing a rapid state of change and redevelopment at the moment as part of its Minha Casa, Minha Vida housing scheme and EcoHouse Brazil, a part of the EcoHouse Group, are directly involved in the scheme.

Minha Casa Minha VidaThe Brazilian government is facing a shortfall of eight million houses for its burgeoning population and in 2009 they set up a scheme to aid low income families in purchasing their own homes. By subsidising mortgages to eligible applicants, and constructing up to three million homes in the coming years, the Minha Casa, Minha Vida project should allow much greater access to houses for poorer families. EcoHouse Brazil is one company that is aiding the government in constructing the homes, having pledged to build 40,000 by the year 2020.

Not only have EcoHouse Brazil changed the way in which investors pledge their money directly to the construction company, assisting in the housing scheme first hand, but they are also completely transparent when revealing progress to investors. This is important because a number of fraudulent schemes with no visible construction after years of holding investor capital in Brazil have damaged the credibility for real investment opportunities in the country. EcoHouse Brazil is one of the largest developers in North East Brazil and have a 17 year track record of delivering high quality housing. But are not relying on their local credentials, they have taken active measures to give absolute investor comfort. For example, the company regularly flies groups of investors out to Brazil to view the construction projects that they have had a hand in building, investors get to see their units being constructed and meet state officials and banks engaged in Minha Casa, Minha Vida. Videos of these diligence trips have been made available on the companies YouTube feed. They have also recently set up a Flickr account that provides regular photographic updates on the progress at the sites. Finally, in a further bid to allay investor concerns over the security of their capital, EcoHouse Brazil dohas partnered with escrow agents with indemnity insurance who will only release investor’s money when contractual obligations are met. EcoHouse Group are able to construct quickly and deliver a profitable return on any money invested in them. With an asset secured entry point of just £23,000, invests can ethically achieve yields of up to 20% per annum.

EcoHouse Group / Brazilian President Pledges Funding for Education

EcoHouse BrazilThe Brazilian President Dilma Rousseff has pledged that a large proportion of the funding which will come into the country from the newly discovered off-shore oil deposits will be redirected into the country’s education system. Brazil is currently undergoing a period of huge economic growth and social reform, attracting foreign investors and improving upon the infrastructure. This pledge to plough funding into education is just one of many commitments by the government to improve upon the standard of living for all Brazilians.

The Minha Casa, Minha Vida social housing scheme has so far proved one of the more popular projects set into motion by the government. The project aims to provide affordable housing for low to middle income families by constructing millions of new properties and offering subsidised mortgages to those eligible to be a part of the scheme. EcoHouse Brazil are one of the leading private developers who have taken on outsourced construction projects as part of the Minha Casa, Minha Vida Brazil scheme. While the government themselves are funding many huge developments, companies such as EcoHouse Brazil allow the project to continue at haste by bringing in further funding from private investors. These investors put up the cash to fund the new housing developments and then receive their money back plus a return on investment after approximately twelve months.

In keeping with the government pledge to improve access to education, the latest and largest EcoHouse Brazil development has its very own on-site primary school. The company are also committed to ensuring that developments within the country’s transport system continue, ensuring that each new housing estate has good transport links for the benefit of residents. So far the Minha Casa, Minha Vida scheme has provided three million new homes for over ten million people, and plans are underway to continue to build in order to meet the target of eight million as soon as possible. Private investors in the UK can expect a return of around 15% on a typical £23,000 investment with EcoHouse Brazil over a period of approximately twelve months. The next EcoHouse Brazil development is seeking funding now and is expected to be completed before the end of 2014.

EcoHouse Brazil / Minha Casa, Minha Vida Social Housing Scheme

EcoHouse BrazilBrazil is currently one of the fastest growing countries in terms of market economy and social improvement. As part of the recognised BRICS emerging markets (along with Russia, India, China and South Africa) Brazil is one of the most sought after new markets for potential investors. The upcoming 2014 FIFA World Cup Brazil and the 2016 Rio Olympics will further increase appeal as improvements are being made to the country’s infrastructure. New transport links including improved road and rail facilities and a brand new airport in Natal, one of the World Cup host cities, are underway, and there are plans to build five and six star hotels, golf courses and other amenities to boost the already rising tourism industry.

Natal is not only host to several important World Cup fixtures and the all new São Gonçalo do Amarante airport, but is also home to the headquarters of EcoHouse Brazil, one of the leading private developers involved in the popular Minha Casa, Minha Vida social housing scheme being backed by the Brazilian government. Minha Casa, Minha Vida Brazil was first set up in 2009 by the then President Luiz Inácio Lula da Silva as a way to provide affordable homes for low to middle income Brazilian families. The scheme proved so popular that current President Dilma Rousseff not only continued the project but actually increased government funding and outsourced several developments to private contractors such as EcoHouse Brazil.

EcoHouse Brazil raises funds for the new developments through private investors in the UK and across the globe. Once each new development has been completed and sold, these investors get their money back plus a return on their investment. Typically EcoHouse Brazil are able to offer a 15% ROI on a £23,000 investment over a period of twelve months. By outsourcing contracts the Brazilian government are able to bring in more funding for the scheme to be able to house more people quickly, and attract a number of foreign investors to the Brazilian markets. The Minha Casa, Minha Vida project has so far been responsible for building one million homes which have allowed approximately ten million people to gain a foothold on the property ladder for the first time in history.

EcoHouse Group / Direct Investment in Housing Development

The Minha Casa, Minha Vida housing scheme run by the Brazilian government since 2009 has already provided around one million affordable homes housing against a projected shortfall of eight million low income Brazilians. The project is backed with government funding to provide subsidised EcoHouse Brazilmortgages, allowing low income families to gain a foothold on the property ladder and increase their standard of living. Further funding for the project comes in the form of outside investors through construction contracts which are outsourced to private developers. These private developers attract foreign and Brazilian investors who front up the cash needed for the proposed development to go ahead. Once the development is completed and the houses sold the investors receive their money back plus a return on their investment. The high returns on offer have led some to claim that ‘Ponzi’ schemes are in operation.

EcoHouse Brazil has taken steps to protect investors and does not accept any investor capital direct. Instead, investment capital is sent to a regulated law firm with professional indemnity insurance who act as independent escrow agents. The escrow agents only release capital when contractual obligations are met. ‘Ponzi’ schemes cannot operate with such safeguards. For potential investors in the UK and western world the EcoHouse Group, through their national office EcoHouse Brazil, are offering a return of up to15% on a typical investment of £23,000 over a period of twelve months. By offering full transparency and having a proven track record EcoHouse Brazil are able to virtually guarantee the predicted ROI. The company have been involved in the scheme since inception and have already delivered two qualifying developments. Funding for the third is now at an advanced state with construction having started earlier this year and the first units due to complete by the end of 2013.

Investing directly with the developers allows the investor to thoroughly research the company and be certain as to exactly where their money will go. EcoHouse Brazil last year flew their forty top investors out to Brazil to see the construction projects in action. Many satisfied customers are choosing to re-invest in each new development venture as a way to make a tidy profit whilst also being part of something which has benefit to the wider community. Even with the governments backing the current deficit will have actually increased by 2020 to over 16 million homes due to the rapid rise of the middle class in Brazil.