How They Survived Hard Times in Brazil

How They Survived Hard Times in Brazil
My first trip to Sao Paulo was right after the devaluation of the Real. Everything I had read in the economist and elsewhere had prepared me to see and economic wasteland. Instead I saw building cranes everywhere. The demand was there the creative brokers and developers adapted to meet the demand.
What they did was this. As soon as the project was conceived a billboard and a trailer were erected on the site with pictures, models, sales agents and brochures. Every street corner for miles around was adorned with a beautiful Brazilian lady passing out brochures. The Brazilian ladies are all gorgeous. The Brazilian men are all macho. This is a perfect combination. The financing is what is really creative though.
The buyer picks out their unit and puts a sizeable deposit. They begin making monthly payments. Interest rates are high in Brazil; so the money accrues quickly. By the time the project is finished in about 3 years, the unit is paid for. The people move into a paid for home. The money deposit is guaranteed by a builder’s association. This solves another problem too. Many people were building without permits. The deposits are only insured for permitted projects.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com