Social Property Investment

Social media has fast become an essential part of doing business and LinkedIn, Twitter and Facebook are now ahead of some of the more traditional marketing tools. By following Obelisk International on the main social media sites, investors can keep up with our latest information on opportunities for investment in Brazil.

Link in to Investment Opportunities

LinkedIn, with over 120 million members, is an ideal networking platform for any investment business. Taking advantage of this, the Obelisk International network taps into the experience of real estate investment specialists located round the world.

Obelisk International is active in several LinkedIn groups discussing topics such as Brazilian investments, alternative investments and Latin American real estate. To follow Obelisk International on LinkedIn discussion groups, click here. Or connect with Obelisk International directly through your LinkedIn account and join our network.

Brazilian Investment Tweets

Keeping ‘tweeters’ up-to-date with what’s happening in Brazilian property, Obelisk International has a well-established Twitter presence. We tweet regularly on Brazil news, information related to investments in Brazil and our company. Minha Casa Minha Vida real estate investment also features in Obelisk International tweets. Click here to follow us on @ObeliskInvest.

@ObeliskInvest manages a series of lists with our followers divided into useful categories such as Brazilian real estate, finance information, Brazilian government sites and Brazil media. Choosing to follow one of our lists allows instant access to tweets from companies and individuals who are experts in your chosen category.

Obelisk International runs a specialist Twitter account for our Minha Casa Minha Vida investment site. Here, we tweet on the latest news and events related to the social housing programme and on the shortage of property in Brazil. Follow our Minha Casa Minha Vida project on @MinhaInvest.

Investment Opportunities to Like

Last but not least is Facebook where you can also keep up with Obelisk International. Get the latest on our investments and resources from the Welcome page. On our Wall, you can keep track of our weekly news on Brazilian real estate, Minha Casa Minha Vida and opportunities for investment in Brazil generally. Click here to like Obelisk International on Facebook.

And as well as social media, Obelisk International maintains a strong web presence with its sister sites www.obeliskinternational.com and www.minhacasaminhavidainvestment.com. Both are constantly updated to bring investors the very latest we offer in Brazilian investments. Whatever your preferred source of information – website, Twitter, LinkedIn or Facebook – we look forward to “meeting” you!

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Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
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3 Million Properties in Brazil Not Enough

3 million social housing units in the Brazilian real estate programme Minha Casa Minha Vida will not be enough. According to government figures, Brazil will need 23 million properties over the next 20 years just to meet demand among low-income families.

The Minha Casa Minha Vida project is currently into its second phase and 2 million affordable housing units will be built over the next three years. While these properties in Brazil will go some of the way towards closing the gap between supply and demand, the Ministry of Cities believes millions more will be needed between now and 2031.

Speaking on a recent radio programme, the Housing Secretary Ines Magalhaes explained that the current Minha Casa Minha Vida project will fall far short of fulfilling demand. Official government figures highlight a deficit of 23 million properties among families earning between zero and three times the minimum wage.

Minha Casa Minha Vida Moves Forward

This income group has an allocation of 1.6 million homes, which have been affected by changes in regulations under phase two of Minha Casa Minha Vida. For example, these social housing units are now larger, more expensive and must include solar panels and tiled floors.

Slow government bureaucracy means these changes have only just been finalised and as a result, Ms Magalhaes said that all contracts for housing units for the 0-3 income bracket throughout Brazil have been delayed. However, she reiterated that with the government budget already in place for this year, the Ministry of Cities expects the back-log to be quickly resolved.

Ms Magalhaes also explained more about the holistic nature of this huge investment in Brazilian real estate. As well as homes, Minha Casa Minha Vida is providing considerable opportunities for women. Not only are women becoming homeowners – women signed 94% of Minha Casa Minha Vida contracts signed this year – they are also benefitting from jobs in civil construction through the programme.

Promising Investment Prospects

The social advantages provided by social housing investment in Brazil look set to continue well into the future. Investors too can expect to benefit from this niche market. With a shortage of 23 million homes, the demand for real estate in Brazil from low-income families points to very promising prospects for social housing investment in Brazil over the next two decades.

Although it’s early days yet, Obelisk International believes that the Brazilian government will continue with a third phase of Minha Casa Minha Vida beyond 2014. “This would make sense given the huge success of the first two phases,” comments Gary Hardacre, CEO of Obelisk International, “particularly since the housing shortage in Brazil is so acute. It’s obvious 3 million homes are not enough and we believe investment opportunities in Minha Casa Minha Vida will be part of the Brazilian investment scenario for years to come.”

Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
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Brazilian Investment Beats the Crisis

With most of Europe in financial and economic straits, Brazil beckons as the place for investment opportunities. The country is well set to weather the global crisis and may even benefit from it, a huge plus for Brazilian investments.

Based on Moody’s latest comments on the Brazilian economy, the Financial Times (FT) blog beyondbrics claims Brazil is the best place to beat the crisis. “Stressed out about the eurozone crisis? Worried about bank CDS spreads? Perhaps it’s time you moved to Brazil,” starts one of last week’s blog entries.

Good Economic Management

The FT comes to this conclusion based on remarks made by the regional credit officer for Moody’s in Latin America Mauro Leos, at a recent Sao Paulo conference. Mr Leos noted that Brazil is a good economic position in the face of the current crisis and pointed out that during the last global crisis in 2009, Brazil investment rating went up.

This rise in rating was awarded because of Brazil’s response to the crisis and “the resilience that was shown,” Mr Leos explained. Management of economics is a criteria Moody’s look at when reviewing ratings – “one of the things that allows us to understand a country and better differentiate them is how they behave during a crisis,” he said.

Brazil managed the previous crisis well with only a brief recession during Q4 2008 and Q1 2009. Since then, the country has gone from economic strength to strength. Buoyant GDP growth last year is continuing this year, unemployment is at a record low and Brazilian investment is experiencing a boom with the highest inflows ever.

Balanced Books

The FT emphasises other positive points in the Brazilian economy, particularly the solidity of banks in Brazil. Unlike many of their European counterparts, Brazilian banks have high capital reserves thanks to strict banking regulations. Brazil also has its external accounts in good order.

Moody’s, who raised Brazil’s rating last June to Baa2 with a positive outlook, are not troubled by the rising inflation rate in Brazil. Moody’s timescale for upgrades is usually between 12 and 18 months, and Mr Leos said the credit agency intends to review Brazil’s rating in autumn next year at the earliest.

Obelisk International shares Moody’s positive outlook for Brazil and firmly believes that with the financial uncertainty in Europe, Brazil is proving to offer the best – and safest – opportunities for investment. “There’s no doubt that Brazil is the place to be for investors,” says Gary Hardacre, CEO at Obelisk International, “as it has solid economic foundations and demand drivers that are difficult to match.” Record levels of investor confidence and foreign investment in Brazil would seem to prove that it certainly is time to move your investments to Brazil.

Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
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Obelisk International on Social Media

For all the latest Brazilian investment and Minha Casa Minha Vida news and to keep to date on Obelisk International's latest investments, why not like/follow us on the following social media sites:

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Stable Outlook for Brazilian Real Estate | Obelisk International News

For the Central Bank of Brazil, the Brazilian real estate market is stable. Steady increases in income and by extension, purchasing power together with a conservative banking sector are all behind the strength in property in Brazil.

Recent increases in Brazilian property prices and the hikes in home loan approvals have led some analysts to question the stability of the property market. Some have concluded that there may be a bubble forming within Brazilian real estate, an opinion that is rejected by many industry experts based on the economic drivers behind the boom in property.

No Evidence of Risk

One of these experts, Antonio de Moraes, Director of Fiscal Supervision at the Central Bank of Brazil, is adamant that there is no evidence of a bubble. Interviewed in the business weekly Exame, Mr de Moraes states that “there is nothing in the Brazilian property market to concern us or anything putting the sector at risk”.

He is emphatic in that “there is no evidence to suggest a bubble forming” and he draws on two fundamentals to back this up. The first factor is, according to Mr de Moraes, the recent steady increases in income for a huge segment of the Brazilian population. This rise in income means more Brazilians have more to spend and most families want to spend their new wealth on a property in Brazil. This leads to huge demand with the first-time buyer market.

Conservative Mortgage Lending

Secondly, Mr de Moraes cites the conservative nature of lending adopted by all Brazilian banks. This conservative policy prevents mortgages in Brazil representing more than 65% loan-to-value. He also points out that most purchases of Brazilian real estate are made by first-time homebuyers with a lot more at stake in their purchase than second home buyers.

Central Bank of Brazil data shows that Brazilian real estate loans represented 1.3% of the country’s GDP in 2005. Six years later, this percentage has increased to around 4%, an easily sustainable figure and one allowing plenty of room for growth. Many experts agree that the Brazilian property market can easily support a loan rate of between 10% and 15% of GDP, a rate that is expected to be reached over the next decade.

Record Transactions in 2010

Reflecting the massive growth in the market for real estate in Brazil are figures for 2010 recently released by the Construction and Real Estate Institute (INCI). According to INCI, Brazilian real estate transactions numbered over 65,000 last year and reached a value of €11.4 billion.

The 12% annual increase in the number of transactions reflects the rise in Brazilian property investment opportunities last year. Many analysts including Obelisk International expect 2011 to see another increase based on solid activity within the real estate sector. “The social housing programme, Minha Casa Minha Vida, will add hugely to the number of transactions,” comments Gary Hardacre, CEO of Obelisk International, “as more developments are completed, confirming the potential behind Brazilian investment in property”.

“With the current demand drivers and buoyant economic situation, we at Obelisk International see no signs of a property bubble,” says Mr Hardacre. “This is particularly true in regions such as Rio Grande do Norte where the demand for affordable property is so strong,” he adds.

Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
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Brazil Leads Social Housing Investment | Obelisk International News

Investment opportunities in social housing are available in a number of countries, both in developed nations such as the US and UK, and in emerging markets led by Brazil, China and India. The Brazilian affordable housing programme is relatively young, but its success means it’s becoming a model to follow.

The Brazilian social housing programme, Minha Casa Minha Vida, is the largest single investment in real estate in Brazil. Building 3 million homes by the end of 2014 and less than half way through its schedule, Minha Casa Minha Vida has already made a real difference to ordinary Brazilians’ lives and the huge deficit in the Brazilian property market.

Tangible Results

With just over 1 million social housing units contracted last year, 2011 is seeing the delivery of many project. Almost weekly a Brazilian city proudly announces the completion of another Minha Casa Minha Vida development. Recent examples include Parnamirim in Rio Grande do Norte (452 apartments) and San Carlos in Sao Paulo state (750 houses).

In addition to providing affordable housing for Brazilians and considerably improving living standards, Minha Casa Minha Vida has also created thousands of jobs and injected much-needed funds into local economies. “It’s important to appreciate the holistic nature of the programme,” says Gary Hardacre, CEO of Obelisk International, “and Minha Casa’s effects go beyond reducing some of the housing shortage.”

Worldwide Social Housing Investment

With one of the most ambitious social housing programmes globally, Brazil is seeing results. Reasons for this positive outcome are Minha Casa Minha Vida’s clear objectives, 100% government financing provided by Caixa Economica Federal Bank and effective coordination between Caixa and local authorities.

The situation in other countries – both emerging and developed – is not so bright . In the UK, a recent survey highlighted the huge shortfall in the number of affordable housing units. According to Countryside Alliance, less than one quarter of the over 230,000 homes required are being built this year by local councils.

Among Brazil’s fellow BRIC countries, China and India are both well short of fulfilling social housing investment objectives. China’s problem is lack of funding – finance for development comes from private banks rather than the government. Issues in India are more complex with little progress made since 2008 – just 7,805 people have benefitted out of a target market of 310,000.

Brazilian real estate investment in social housing is serving as a model for other countries. Latin American neighbours, Colombia and Uruguay have approached the Brazilian authorities for advice on affordable housing schemes. China too is reported to be interested in Brazil’s funding of Minha Casa Minha Vida.

Obelisk International was quick to recognise the potential in this investment opportunity. “Minha Casa’s results so far mean we expect to expand on our social housing investment portfolio,” says Mr Hardacre, “as the programme moves forward into 2012.”

Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
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