Property and infrastructure is big business in Brazil at the moment, with the upcoming dual sporting presence of both the FIFA World Cup and the Olympics over the next three years. EcoHouse Brazil are the Brazilian arm of the UK-based EcoHouse Group, and are investing heavily in the government sponsored minha casa minha vida social housing project. The minha casa minha vida Brazil scheme, which translates as ‘my home, my life’, was set up back in 2009 in a bid to provide affordable housing to the rising middle class of the country. Under the minha casa minha vida scheme eligible families are able to apply for new homes being built by groups such as EcoHouse Brazil through a special rate mortgage scheme which is subsidised by the Brazilian government.
Property investment in South American countries such as Brazil has been given a bad reputation over the years as unscrupulous companies take investors money and either sink it into higher risk schemes than the minha casa minha vida Brazil project or in some cases simply pocket the funds. EcoHouse Brazil have been a valued part of the project almost since day one, and have already created millions of pounds in return on investment for their backers. The idea is that investors stump up the cash to pay for a new housing scheme to be built. Once enough cash has been raised EcoHouse Brazil begin the development, and approximately twelve months later the properties are ready to be sold on to native Brazilians who qualify for the minha casa minha vida programme. EcoHouse Brazil then repay the initial investment plus a return, which until recently stood at twenty percent. Due to inflation causing a higher cost of building materials and other necessary equipment the ROI at EcoHouse Brazil is now set at 15%. This still offers a great opportunity for investors, especially as savings interest rates in the UK have recently hit an all time low. The average cash ISA now offers only 1.74% interest, making an EcoHouse Brazil investment more than eight times as profitable over a year. The minha casa minha vida scheme has so far helped over three million families in Brazil to gain a foot on the property ladder, an estimated eight to ten million people.