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Brazilian Housing Explosion Continues

09.05.2009 · Posted in Home and Garden Articles

The Minha Casa, Minha Vida scheme launched three months ago with the intention of providing affordable housing to Brazils growing middle class has proved a massive success with huge numbers signing up.nn125,811 families have registered so far with the State Company of Popular Dwellings (Cehap) who are leading the development boom and private developers, both Brazilian and International, are falling over themselves to join the bandwagon. nnIn 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.nnThe State Government is supporting the re-zoning of land in the area for the development of popular housing and has announced a number of proposals to assist constructors who are focusing on the sector. nnMinha 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.nnThe 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.nnPublic 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. nnThe Brazilian Finance Minister stated that Minha Casa, Minha Vida was at the centre of the Governments economic strategy and is having a massive impact on the Brazilian economy.nnGoldman Sachs chief economist Jim O’Neill now predicts that the major emerging markets”Brazil, Russia, India and China, a.k.a. the BRICs”could overtake the combined GDP of the G7 nations by 2027, nearly a decade sooner than the forecast in a landmark study a few years back.

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