The Brazilian Governments hugely successful Minha Casa, Minha Vida scheme which was launched 12 weeks ago with the intent to provide affordable housing for the rapidly expanding middle class in Brazil has seen record numbers signing up to the scheme.
Brazilian and International companies are extremely active in this market now, but the market leader is the State Company of Popular Dwellings (CEHAP) which has registered over a 125,000 families keen to purchase their first home.
In Brazils North Eastern state of Paraiba the Brazilian Institute of Geography and Statistics say there are already 21,306 new homes planned for families earning between zero and 10 times the minimum wage. Although this is a substantial number of new dwellings, a survey carried out by the Ministry of Cities in 2008 states that Paraiba needs at least 122,000 new homes, which has been identified by the private development sector.
With constructors clamoring for land the State Government of Paraiba has announced a raft of proposals to make obtaining planning permission more straightforward and speed up the development process.
Minha Casa, Minha Vida has provided an impressive R$60bn into Brazil’s housing market, and with the construction industry accounting for 5 per cent of Brazils GDP this will give a valuable boost to employment and earnings.
The Minha Casa, Minha Vida scheme will receive another 10 Billion Reais in 2010. Brazil has a housing shortage estimated at 8 miilion units and this scheme was bought in by the Government to provide affordable housing and to stimulate the construction industry downturn caused by the worldwide economic crisis.
Public funds will be used to subsidize their home purchase, keeping monthly mortgage payments below 10% of the buyers income, with mortgage payments guaranteed by a Treasury fund.
Brazilian Finance Minister, Guido Mantega says that Minha Casa, Minha Vida is the one of the Governments core anti-crisis schemes and will have a huge impact on the Brazilian economy.
The chief economist of Goldman Sachs has stated that Brazil could be one of the worlds largest economies by 2027
Leslie Richards is a development investment consultant to Brazil land Invest and wrote this article on the Affordable Housing sector in Brazil and invites you visit Brazil Land Invest for more information information about investing in this exciting investment sector.