Brazil's Minha Casa Minha Vida keeps on going - Emerging Real Estate

Brazil's Minha Casa Minha Vida keeps on going

23/06/2011

 Brazil’s Minha Casa, Minha Vida scheme keeps on going

The popular Brazilian housing scheme Minha Casa, Minha Vida (My home, My Life) will soon be entering its second phase as the government hopes to build another 2,000,000 homes for low income families before 2014. “Launching this new phase marks a special moment,” President Dilma Rousseff said. “Building a house is much more than construction work. It is building a dream because a home is the space where relationships are built, children are raised and family ties are established. A home is shelter, protection and security.”

The federal government of Brazil will look to invest around US$87.5 billion in the second phase of the housing program, according to Dilma. There are two new elements set to be included in this phase - firstly, women will no longer need the signature of their husband to sign up for the housing plan and secondly, all houses built will look to use solar panels for energy.

“This way we can also help families save a lot of money on their electrical bills,” Rousseff said at her weekly radio talk show. What stays the same is that low-income families – with salaries up to R$1,600 (US$1,000) – three times the minimum wage, will only have to pay a maximum percentage of 10 percent on their mortgage, for a fixed period of ten years.

This latest news is sure to give a boost to the already well performing Brazilian real estate market. The country is still looking like an undoubtedly good investment, and with the forthcoming sporting events, prices for property in Brazil are expected to only get higher.

With all the big changes and need for real estate in mind, it is no surprise that from all Brazilian cities, Rio de Janeiro has had the highest production of properties during the first phase of Minha Casa, Minha Vida. It has been reported that Rio has built 12,450 homes so far.

Rio mayor Eduardo Paes said in a speech at the Minha Casa, Minha Vida launch: “Rio has made an effort to buy land where there is infrastructure, asphalt and light to ensure a better quality of life for the population and to avoid the unorganized occupation of land,” he said.

If you would like more information on Brazil’s buoyant property market or would like to chat with someone about the properties on offer from Emerging Real Estate, then please do not hesitate to get in touch with us.