Brazil is regarded as the 7th biggest economy in the world and has been selected to host the 2014 FIFA World Cup. It is an excepted fact though often ignored that when countries are awarded the hosting of major sporting events like the World Cup or the Olympics that it is a clear sign of an economy that is booming.
Brazil is currently experiencing a tremendous growth phenomenon. Principle factors including a relatively strong economy and politically stable environment have indeed attracted many investors from all over the world.
Holiday homes and tourist accommodation are usually popular among investors, though now may not be the best time to invest in these following the direct impact of a global economic downturn. Perhaps the best approach would be to look at developing valuable holiday spots in prime locations with a view to reaping the benefits long-term as the demand grows with improved economic stability.
Having that said – Brazil does have another trick up its sleeve when it comes to property investing. Minha Casa Minha Vida is the name of a huge project which aims to meet the increasing demands of affordable housing in Brazil. The idea is to make housing as accessible as possible to lower-income groups within the population. This makes investing in local residential real estate in Brazil an attractive and safe opportunity that will continue to grow and promises high returns further ensured by the high demand in this case.
Year to year prices of the local housing in Brazil suggest a consistent increase up to 20%. Investors who strategically position themselves within the circle of this development will certainly be able to reap extensive rewards and also sell their properties for higher expected returns.
The government of Brazil needs to exercise special consideration over a growing shortfall of affordable housing for its citizens and is therefore welcoming foreign investors. The target is to be able to provide an estimated 37 million houses and this they hope to achieve by 2030.
The Minha Casa Minha Vida programme is expected to look into all areas of the country where the population is concentrated in large numbers. They are experiencing a huge deficit of housing. This in turn has even greater implications for the kind of development that needs to take place there. Investors will no doubt continue to benefit as the programme extends into the future.
To get started into the Minha Casa Minha Vida programme investors need to fork out a minimum of $74,000. This initial investment will see a 50% profit in just two years and is tax exempt in Brazil.