Q : HOW IS THIS OPPORTUNITY SECURED?
A : The developer has an established track record of delivering high quality homesunder the Minha Casa, Minha Vida programme. There are four key elements to securing your investment with the developer:
- Your purchase price/capital is not paid to the developer directly. It is secured in a solicitor-controlled escrow account and released in strict accordance with the terms of your contract with the company; each escrow account is separate and insured by professional indemnity insurance.
- The developer is the constructor, developer, real estate agent and land owner in Brazil - there are no third parties involved in the process of delivering the quality homes provided by the company under Minha Casa, Minha Vida.
- Using investor capital to construct means that as the developer, they are assured of being able to fund the construction without the bureaucracy of using government bank finance. It is worth noting that bank finance is available to them at any time which further ensures the security of delivery.
- You are entitled to take control of the finished family housing unit at below market value in the unlikely event that a buyer cannot be found within your contract terms, in which case all costs of transfer will be borne by the developer.
These unique factors have made the developer’s social housing one of the most popular real estate investments available.
Q : HOW ARE MY RETURNS ASSURED?
A : The demand for housing under Minha Casa, Minha Vida cannot be underestimated. The speed at which the developer is selling to waiting buyers is unprecedented and it is easy to see why. Brazilians have been given the opportunity to own their first home with government subsidised mortgages of up to 100% loan-to-value at rates below base rate for the first time. There is a limited supply of mortgages the government will support and this has led to extensive waiting lists. Your returns are assured because once your family housing unit is delivered, the Minha Casa, Minha Vida mortgage in effect repays your capital and return.
Q : WHEN CAN I EXPECT MY RETURNS?
A : As soon as the company receives your funds, it can start the process of constructing your property and securing a qualified purchaser under the Minha Casa, Minha Vida programme. Due to the government-fuelled demand, the developer’s experience with projects to date is that finding buyers is a relatively quick process once construction has started.
The company’s use of escrow-secured capital assures it’s ability to construct, with no limits in how quickly they can progress with construction. As a result, 12 months is typically more than sufficient to construct and deliver your family housing unit to the Brazilian buyer. In the event of a delay in delivery you will still receive your capital back plus the fixed rate of return once the delivery is completed.
Q : HOW AM I PROTECTED FROM CURRENCY RISK?
A : The developer has offices Worldwide and has fixed the purchase price of it’s homes in multiple currencies, including GBP, USD, CAD, EUR & SGD. Due to this, should you choose one of the currencies available, you will not be exposed to fluctuations between the Brazilian Real and the currency in which you purchased a property.
Q : ARE THERE ANY OTHER FEES, TAXES OR COSTS?
A : The escrow facility is included in the unit cost and there are absolutely no fees, taxes or other hidden costs. Your return is a fixed amount of the proceeds received from the sale of the property.
Q : IS “MINHA CASA, MINHA VIDA” A LONG TERM OPPORTUNITY?
A : The Brazilian Government has pledged circa R$72 billion to the MCMV programme project since its launch in 2009, the programme is designed to deliver 3,000,000 homes by 2016. As of March 2013, just over 1,000,000 homes had been completed. The demand for the remaining 2,000,000 homes, which will qualify for Government-subsidised mortgages, is overwhelming and homes simply are not being constructed quick enough to keep up with this demand. They anticipate the programme will continue until the outstanding pledge is met after which the programme may be extended or scaled back.
Q : ARE THERE ANY COMPARABLE INVESTMENTS ON THE MARKET?
A : It is possible to invest in joint Brazilian-overseas Minha Casa, Minha Vida developers. However, only with the developer can investors receive marketleading returns coupled with the extra layer of security provided by the escrow facility. There are other companies which claim to develop in Brazil under the Minha Casa, Minha Vida programme, but it is always recommend that investorsconduct their own due diligence, as many of these builders do not have any track record in the market or experience of building in Brazil. With the developer and the escrow facility we provide, you are investing through a safe and secure method, with a developer which has experience of not only the Brazilian market, but also in the construction and marketing of properties in the Minha Casa, Minha Vida programme.