“Boom” in housing

Brazil has an emerging middle-class, hungry to buy homes, and the federal government has been taking important steps intended to provide them with access to credit.

The “first big break” under the Lula administration, according to the Global Property Guide website, “was the government’s approval of fiduciary alienation, whereby the buyer becomes the owner of the property only after it has been fully paid.” This minimizes the risk for the Brazilian banks in case buyers default on their loans, so they are now more willing to lend to potentially riskier buyers, can provide longer payment terms and even (relatively) lower interest rates.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>