Brazilian President Luiz Inacio Lula da Silva's government could triple to 3 million the number of homes it will build under its flagship low-income housing plan, underscoring the program's success after its first year. The low-income housing scheme has proved to be a success so far this year, with the original plan being to build just one million new properties.
Paulo Safady Simao, president of the Brazilian Construction Chamber, claimed that an announcement could be made on April 29th, when president Luiz Inacio Lula da Silva is slated to release a new version of the program, according to Reuter’s reports.
Originally, the $20 billion (£13.3 billion) plan, which started in March 2009, as part of an emergency package to help Brazil's economy fend off the global recession, had an initial goal of 1 million homes to be built by 2011, officials claimed that around 60 per cent of Brazilian property in the scheme had been sold. The scheme also involves loan guarantees and subsidies to entice low-income households to buy homes.
In a boost to the local property market, Mr. Simao said the government will focus on sponsor home financing for the poorest families, with incomes below three times the minimum wage which affects more than 30 million workers and retirees. Simao who did not give a time estimate for the project's completion noted that the plan's second phase will probably require up to 72 billion reais ($40 billion) in subsidies and loan guarantees. The money will come from the federal budget, he added.
According to Businessweek reports, Rodrigues will soon own a two-bedroom apartment near Sao Paulo. He'll get a cash grant covering a quarter of the $52,000 price and a discounted 30-year mortgage, so he'll pay just $220 a month—half what a conventional loan would have cost. "This is an incredible opportunity," the 31-year-old says, smiling broadly as he hands in paperwork to seal the deal.
Tuesday, March 23, 2010
Monday, March 1, 2010
Property purchase in Brazil could be the realization of a dream
The Brazil property market is offering fantastic opportunities in 2010 and buying a property in Brazil could be the realization of a dream for a lot of people.
Mark Bodega, director of currency specialists HiFX, said that as the Brazilian property will probably represent one of the greatest expenses in a person's life, a number of things need to be taken into account.
The Brazilian currency has been in consolidation mode for the last three months after a leading performance in 2009 and is off its highs against the US dollar and the pound. Its fortunes have been constrained not only by a feeling that it had strengthened too far, too quickly and there is still no certainty that the sterling/real exchange rate will move in any particular direction. So investors are advised to hedge their exposure, buying forward 50% of the reais they will need, according to Investment Management Co (Pimco) reports.
Mr. Bodega commented: "As part of the process, buyers will inevitably need to transfer a sterling sum." This could make a vital difference to the cost that people will eventually have to pay for their dream home. The expert told people interested in buying Brazilian property that specialist currency dealers will offer them a better rate of exchange than a bank, while also providing a more personalized service.
Meanwhile, a recent report by investment firm Obelisk said that a majority of experts are predicting that the right place for property in 2010 is Brazil and the right time is now.
"One after another, property analysts and economic experts are tipping Brazil as the place to invest this year. Whether your investment is in real estate, land, soft commodities or equities, Brazil is the investment location for 2010," it added.
Mark Bodega, director of currency specialists HiFX, said that as the Brazilian property will probably represent one of the greatest expenses in a person's life, a number of things need to be taken into account.
The Brazilian currency has been in consolidation mode for the last three months after a leading performance in 2009 and is off its highs against the US dollar and the pound. Its fortunes have been constrained not only by a feeling that it had strengthened too far, too quickly and there is still no certainty that the sterling/real exchange rate will move in any particular direction. So investors are advised to hedge their exposure, buying forward 50% of the reais they will need, according to Investment Management Co (Pimco) reports.
Mr. Bodega commented: "As part of the process, buyers will inevitably need to transfer a sterling sum." This could make a vital difference to the cost that people will eventually have to pay for their dream home. The expert told people interested in buying Brazilian property that specialist currency dealers will offer them a better rate of exchange than a bank, while also providing a more personalized service.
Meanwhile, a recent report by investment firm Obelisk said that a majority of experts are predicting that the right place for property in 2010 is Brazil and the right time is now.
"One after another, property analysts and economic experts are tipping Brazil as the place to invest this year. Whether your investment is in real estate, land, soft commodities or equities, Brazil is the investment location for 2010," it added.
Subscribe to:
Posts (Atom)