Minha Casa, Minha Vida Gives Homes To Brazilian Families

The popular social housing program giving homes to millions of Brazilians families and strong to its anticipating investors is back!

Social Housing Developments by EcoHouse Group

When the world thinks of Brazil, beaches, football and samba come to mind. Unfortunately however, so do the country’s notorious favelas. Twelve million people live in these shantytowns, but that is only half the story.

What people don’t know about the favelas is that, with Brazil’s recent economic changes, most people living in them now form part of the emerging middle class. These people now tend to have steady jobs and would be able to buy property if somebody was willing to give them a mortgage.

In 2009 the government decided to step in with Minha Casa Minha Vida. The program provides subsidized mortgages for Brazilians on less than ten times the national minimum salary of £183 per month, with the most generous subsidies going to those earning less than three times the minimum wage. Minha Casa Minha Vida buyers have access to a special interest rate of 5%, which is less than half the Brazilian base rate.

In its first phase (2009-11) Minha Casa Minha Vida saw one million homes created with the second phase (2011-14) aiming to complete 2.75 million homes by the end of the year. The goal for phase 3 (2015-2019) is to construct a further three million homes.

In order to construct the homes, the Brazilian government has turned to the private sector and this is where EcoHouse Group comes in. Where most developers choose to construct the projects through slow and bureaucratic bank loans, EcoHouse Group goes to investors for funding.

EcoHouse Group offers a £21,000 investment with returns upwards of 15% a year after investment. To provide an extra layer of security the company also uses an escrow facility registered with a leading UK bank, which ensures that investors’ money cannot be drawn until proof of purchase for materials is provided and signed by a professional lawyer with indemnity insurance.

For its latest project, Monte Alegre, EcoHouse Group has chosen Porto Alegre’s Alvorada suburb as the location for its 500 high-quality social housing units. This reflects the strong economy of Porto Alegre, in which jobs in services, industry and agriculture are readily available, and the transformation of Alvorada, traditionally one of the poorest areas of the city but now a hub of middle class commuters.