subject: Where Should I Invest My Money In The Brazilian Real Estate Market? [print this page] Brazil investment opportunities are at a premium at the moment and none more so than the Brazilian Real Estate Market. There are a number of areas across the market that investors, both in Brazil and from across the world, are being urged to invest in at present, all with the potential to offer fabulous monetary returns.
However, one area that is often overlooked, because it is not deemed as glamorous as other potential Brazil property investment opportunities, is the area of affordable housing projects. Waseem Saddique comments: In the current Brazilian Real Estate Market climate, Brazil property is becoming far more accessible to C Class/Middle Class people who have recently experienced an increase in wealth.
Housetech Developments, which is owned by Waseem Saddique, also feels the benefits of targeting affordable housing projects as a means of growing the business. The company has the opportunity to pitch for business to develop areas of land and offer the finished properties to potential buyers and Brazil property investors.
Another benefit of investing in affordable housing projects is that they are endorsed by the Brazilian Government and they will offer support to investors and developers as an extra incentive for investors and Brazil property developers to get involved. The Minha Casa, Minha Vida (My House, My Life) initiative is one such example of a project that has been backed heavily by the Government.
Potential investors can also take advantage of Brazilian property funds to help them, from a financial perspective, to get involved in affordable housing and social housing projects taking place across Brazil.
Brazil property funds are now far more accessible to investors as they are becoming easier to understand, with the Government looking to improve the transparency of such initiatives, due the increasing popularity of their use.
Therefore, for any potential investor, social housing and affordable housing projects represent an ideal area of the Brazilian Real Estate Market in which to make an investment. Such projects also provide other areas of the market to explore, particularly the Brazilian Mortgage market.
Waseem Saddique comments: At present, the percentage of the Brazilian population that has a mortgage stands at around 3%, therefore, there is plenty of room for growth and huge a potential market on offer for investors to take advantage of that would work in correlation with any investment in affordable housing or social housing projects.
In a bid to increase lending, the Brazilian Government has forced Government run banks to decrease interest rates and at this moment in time the Brazilian interest rate is at a current all-time low of 8.5% (correct as of May 2012). This rate has been set by the Central Bank of Brazil's Monetary Policy Committee (COPOM).
