EcoHouse Brazil warns that the Brazilian market is bound to attract scam companies

Brazil has certainly caught the attention of financial commentators and investors over recent years. EcoHouse Brazil is has plenty of first-hand knowledge of what it takes to succeed in the exciting yet challenging Brazilian property market. As a result, the positive interest in the Brazilian market comes as no surprise to the company. However, the opportunity offered by the Brazilian economy creates certain pitfalls that ordinary investors need to be aware of.

One concern is that the market will attract investment companies who have little or no experience or expertise in relation to this particular market. This is of particular concern when it comes to the property market in Brazil. Without appreciating the intricacies of the Brazilian planning regime, many companies take a look at the booming market and embark upon plans for housing or office developments that have little or no chance of ever being completed.

This is a marked contrast to EcoHouse Brazil – a company that has already successfully completed many construction projects in Brazil. The company has built a solid reputation. Perhaps the best evidence of this is the fact that EcoHouse Brazil is one of the few foreign property development companies chosen to be involved in the Brazilian government’s flagship Minha Casa Minha Vida housing scheme. The English translation of Minha Casa Minha Vida is ‘My House, My Life’. Good quality, affordable housing is constructed according to set specifications. There is a set exit price and the government oversees eligibility for purchase according to certain needs-based criteria. The objective of the scheme is to ensure that enough housing stock is created to meet the needs of ordinary working families in Brazil. This particular developer has already proven that it is capable of delivering under the scheme. The evidence suggests that this is one company that potential investors should definitely pay close attention to.

The problem of ‘scam’ companies taking advantage of unwary investors may become worse in the near future. This is because Brazil will very shortly take centre-stage in the eyes of the world. Within a period of two years, Brazil is set to play host to the FIFA World Cup as well as the Olympic Games. What’s more, given that the Brazilian economy is underpinned by the government’s ‘Plano Real’ strategy, it is likely that that with low inflation and stable interest rates; pre-2008 annual growth rates are expected to return to Brazil very soon.