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In Brazil Construction Sector Has Still Long Way to Become Green Friendly PDF Print E-mail
2010 - August 2010
Written by Ruban Selvanayagam   
Thursday, 12 August 2010 18:20

Building construction in Rio, BrazilFrom a general perspective, Brazil's commitment to environmental sustainability is widely considered commendable compared to other countries witnessing rapid growth. In contrast, the construction sector has continued to lag behind and has become under increased scrutiny for failure to adhere to the increasingly important global standards of environmental protection.

Brazil's buildings themselves constitute 45 percent of national energy consumption and whilst some significant steps forward have been taken - such as the creation of the Brazilian Council for Sustainable Construction (Conselho Brasileiro de Construção Sustentável, CBCS) in 2007 - true sustainability remains a huge distance away.

The current consensus amongst thought leaders, researchers, academics and consultants is that the employment of increased sustainable practices could save the industry between 30 and 40 percent of the consumption of energy.

Below are some of the main issues facing the growth of Brazil's environmentally efficient construction and building industry as well as the associated counter-reactive measures being implemented:

Timber: whilst it was recently reported that, as a result of Brazil's post-recessionary growth, the level of illegal deforestation has began to increase slightly, a number of measures have been instilled to ensure that certain parts of the country of high ecological value (such as the Amazon and the Pantanal) cannot be logged in any way, shape or form.

Other stipulations include the requirement that the origination of wood used in the construction process is officially certified.

Waste: according to the Brazilian Institute of Geography and Statistics (Instituto Brasileiro de Geografia e Estatística, IBGE), based on current practices, from the waste created as a result of the construction of three buildings, there would be enough to create an entirely new one.

In response to such alarming figures, President Lula recently sanctioned Law no 12.305/10 which establishes a national policy on waste disposal that materials either need to be effectively recycled or placed within proper storage facilities.

It is also worth pointing to the increased presence of organizations such as the Institute for the Development of Ecological Housing (Instituto para o Desenvolvimento da Habitação Ecológica, IDHEA) who have developed a product range from recycled waste from previous building projects such as bricks, tiles and plastics - these have all been tested and manufactured using the identical methodology as with construction material in the mainstream marketplace.

Education: much of the low construction standards across the country are attributed to the lack of understanding of effective techniques and practices. According to the department of engineering and architecture of the University of Campinas (São Paulo), the prominent and reputable training of professionals is mainly located in the Rio de Janeiro, São Paulo and Belo Horizonte states whose graduates, generally speaking, tend to remain in these areas to practice.

Despite this, there is a rising presence of established development companies - with teams of well-qualified professionals - relocating further afield than solely the south and central of the country (including Rossi, Gafisa and MRV who are taking advantage of the real estate growth opportunities that lie within such as the north of the country).

Organizations such as the CBCS and Pini also work to formulate industry-led literature, guidelines, software and other knowledge dissemination that is filtering through to act as a means of common conduct amongst industry professionals.

Water Use/Drainage: the wastage of water during the construction process is a common issue that is seen throughout projects throughout the country. Brazilian constructors are being encouraged to employ the use of equipment which saves the consumption of water (such as storage tanks and controlled discharge valves).

In terms of the sustainable usage of fixtures and fittings in buildings themselves, there is also an increased presence of water efficient shower units, rain-water recycling facilities and other installations which encourage residents to conserve water (and therefore costs).

Informal Building: one of the main issues that confronts the sector on a broader scale is the construction of buildings based on extremely low standards, particularly in poorer neighborhoods. Although projects such as 'Minha Casa, Minha Vida' and other urbanization plans of favela communities in Brazil's larger cities look set to assist with the control of such practices, the goal of completely eliminating this practice remains far.

Solar: Brazil is in an excellent position to take advantage of this sustainable method of energy generation within its buildings. However, the technology to truly make the use of such power still remains expensive and, whilst leading to cost savings in the long run, continues to remain financially unviable in construction plans.

The current practicality of solar energy reliant buildings has also been questioned, particularly in the commercial sector - for example, the installation of a solar collector pipe is a cumbersome process and it is widely viewed easier to have a long term electrical energy conservation infrastructure (which still adheres to national standards).

Nevertheless, there is a significant amount of research and development into the increasing importance of solar in the building industry (an example would include a detailed national feasibility study by the Society of the Sun NGO (Sociedade and the Institute of Energy and Nuclear Research (Instituto de Pesquisas Energéticas e Nucleares, CIETEC).

Wind: particularly in the north of the country, where wind speeds can reach some of the highest on the planet, the use of this source of energy has become increasingly important. Whilst wind turbine sales have been reaching unprecedented levels, the industry itself has yet to benefit from economies of scale with largely wealthier self-home builders and eco-styled project constructors being the main end users at the present time.

Construction industry leaders have voiced their concern of being caught in a trade off between rising material prices whilst also needing to meet environmental standards which, it is argued, also come with an elevated price tag.

However, some academics and industry professionals have debated that this does not always have to be the case - John Vanderley of the Polytechnic School of the University of São Paulo, for example, states: "sustainability has three vectors: environmental, social and economic of which, in many cases, there tends to be an imbalance. If all factors are considered in parallel, it is quite possible to have sustainable construction projects."

He continues to refer to several products that have long existed in the Brazilian marketplace (such as fibrous cement tiles) that are low priced but are often not used due to not being considered as 'industry standard' materials - he believes that it is only through the education of the benefits of such products that their usage will become more common.

As the industry continues to grow in line with the enormous deficit that the housing industry faces (which looks set to increase in line with population growth) - as well as implementing standards and procedures on a policy level - an overall level of commitment by the nation's constructors constitutes a critical part in its long term sustainability.

Ruban Selvanayagam is a Brazil Real Estate and Land Specialist. For free e-books, state guides, up-to-date statistics, strategies, interviews, articles, weekly broadcasts and more please head to the Brazil Real Estate and Land Investment Guide via the following link: http://www.brazilinvestmentguide.com/brazil-property-real-estate-land/



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Comments (43)Add Comment
Brazil's commitment to environmental sustainability is widely considered commendable compared to other countries witnessing rapid growth
written by ch.c, August 12, 2010
What is the comparative sources of the author ?

Because later he writes
- much of the low construction standards across the country are attributed to the lack of understanding of effective techniques and practices.
- the wastage of water during the construction process is a common issue that is seen throughout projects throughout the country.
- one of the main issues that confronts the sector on a broader scale is the construction of buildings based on extremely low standards, particularly in poorer neighborhoods.

Quite in contradiction with his "Brazil's commitment to environmental sustainability is widely considered commendable compared to other countries witnessing rapid growth."


Ohhhh in the USA too they had rapid growth...for a while.
NOW they are in the U turn !

And in Brazil, doubtful that the real estate market is sustainable....with mortgages rates at about 10 % or so.

And your favelas are here to stay for several more decades.
And in a decade or two it will be your actual constructions that will become....FAVELAS...due to the LOW QUALITY OF CONSTRUCTION MATERIALS !
Therefore your favelas will GROW in numbers, by definition !

Time will tell !
...
written by Ruban Selvanayagam, August 13, 2010
With regards to the country's general sustainability - I was referring to its national renewable energy matrix (biofuels and hydroelectricity for example)

Development projects across the world are subject to similar issues - no matter how 'advanced' the country is. Construction is never simple process and, in a country that is witnessing rapid growth, problems and are always going to appear - particularly with regards to maintaining sustainability.

I would also disagree with your point about low quality construction materials - I don't believe this to be main issue the industry is currently facing but more so their rising costs combined with labour shortages amongst.
Ruban Selvanayagam "I would also disagree with your point about low quality construction materials"
written by ch.c, August 14, 2010
Dear True Idiot,
But...but...but....YOU WROTE IT....YOURSELF !
Do you even know what YOU wrote ?

You are expert in what ? In cheating your potential clients ????
Yesssss, absolutely.
Just refer to the article written on that subject not that long ago in THIS MEDIA !!!!


Simple as that !

Ohhhh and low quality construction materials NEVER LAST VERY LONG, regardless of its price. But agreed that cheaper is better than expensive, even more so for LOW quality.

And about labor shortage :
How can Brazil with a work force of 90 millions or so and a registered work force of only 24 millions have a LABOR SHORTAGE ????
More than doubtful except for idiots !
Or where you more referring to shortage of Skilled Workers ?
You would still be 100 % WRONG !
My country imported for decades tens and tens and tens thousands of NON SKILLED SEASONAL FOREIGN WORKERS from Italy, Spain and Portugal, to build our infrastructuresssss and buildingsssss.

So did the Germans, by the way but they mostly from TURKEY !

And if you still pretend to be right and in disagreement with my comments, then suffice to import Non Skilled Workers from the many poorer South America countries !

And if you pretend that you have a lack of Skilled Construction Engineers, then they are available by the tens of thousands in Europe and America.

How do you think China, Asia and the Middle East are developing their infrastructures,including buildings constructions ?
Wellll....in Asia and China most experts engineers are foreigners, non skilled workers are local.
In the Middle East all experts engineers and non skilled labor are foreigners !
More simple there is not ! And they have Noooo shortage, but rather an oversupply for now !

As I said many times in this forum that idiots are always sure to be 1'000'000 right. Even more so the Idiots Apparent Experts like You Ruban Selvanayagam an Appafrent Brazilian Real Estate and Land "Specialist"

Last but not least
It is extraordinary that an apparent brazilian expert in Real Estate, doesnt mention one line or one word, that the biggest bottleneck in Brazil is.....THE WORLD HIGHEST INTERESTS RATES...AFTER INFLATION !

And just have a look by yourself at how many paved roads you have in all your roadways : SIX PERCENT as per the World CIA factbook !
LOWER THAN EVEN IN POOR AFRICAN COUNTRIES, until proven otherwise by the brazilians apparent experts !

Sure...in view of the World Highest Interests Rates after inflation.
LOOK NOWHERE ELSE DEAR IDIOT EXPERT !

If you wish I may find a good job for you : as an expert in sugarcane cutting !
Or as an illegal deforester job !

Not surprising that with millions of people like you, who pretend to be educated, thus knowlegable and expert in tit or tat....nothing works smoothly...in your country !

And the reason of your success in the last several years was simply due to EXTERNAL DEMAND of basic commodities !
Nothing to be extraordinarily PROUD !
Developed nations provide you with the necessary inputs, you provide the outputs as per the manuals given to you !
I just remind you that Brazil had the LOWEST economic growth rate of the BRIC and the LOWEST economic growth rate of the MERCOSUR.....since His Majesty Robbing Hook was elected.
In fact such a poor comparative growth rate, that Robbing Hook had to use a NEW METHODOLOGY to refigure out IN HIS FAVOR the results of his 4 years FIRST TERM...in 2007...to pump up the 2003-2007 economic growth rate !!!

WHAT A JOKE the Brazilian Economic Miracle. A Mirage yess, not a Miracle !
Because a little easy to become competitive after having devalued your currency by 75 % in only 4 years, from 1998 to 2002 !!!!!

What do you think about the USA competivity will be if they devalue their currency by another 50 % IN THE COMING YEARS !
VERY COMPETITIVE AGAIN...by definition !
And they already devalued by 50 % or so.
Reality being that a 75 % DEVALUATION is in fact 2 times 50 % !
Because 50 % of 100 = 50, and 50 % OF 50 = 25, or a 75 % devaluation.
Thus Yesss Yesss...they will become price competitive for yearssss if they devalue by another 50 % or so.
Just like Brazil did. Not counting your previous 4 times erasing of 3 zeroes...to be nice with the Braz-zeroes !
Dont forget that Brazil is the country who has devalued the most its currency on earth...after ZIMBABWE !

Sad reality ! And I challenge You or anyone to prove me wrong !


Laughs...laughs...laughs....laughs !
ch.c
written by João da Silva, August 14, 2010

And I challenge You or anyone to prove me wrong !


An astute analysis barring personal attacks on the writer of the article. From his name and the writing style, one could make out he is not a Brasilian and new to the country and ill informed. In his first and second articles, he made lots of sense and in the subsequent ones, went on a tangent. In fact I had asked you specifically if you went through his website, under his 3rd article. I am reproducing the question:

Have you gone through the website of the writer of the article? If so, your comments on the above statement.

Please, if you don't mind. Something doesn't sound right from my personal experience.

BTW, the writer´s other two articles on Credit Cards and "Perils of under construction property" seemed to give more factual info".

Thanks.


Unfortunately, the latest two articles of Mr.Selvanayagam sound more like a propaganda for "guess whom" than solid advice for potential buyers of the real estate property in Brasil. smilies/sad.gifsmilies/sad.gif
On the subject of Brasil Real Estate
written by wiseman, August 14, 2010
http://www.thebrazilianeconomy..._elite.php

Mortgage rates today for good creditworthy buyers are ~ 9% a year (HSBC, Santander, BdB). This is 4% above current US rates. US rates 12+ years ago b4 'free money' were in this range.
wiseman
written by João da Silva, August 14, 2010

Mortgage rates today for good creditworthy buyers are ~ 9% a year (HSBC, Santander, BdB)


Last year or so, I did a simulation at Herr.Doktor´s request and the borrowing rate was much higher than 9%. Great to know that it has dropped down to 9%. You may be a very good "creditworthy" buyer, but...but...try to borrow from these 3 banks and tell me the "hindrances" you will come across! Regarding the link you sent us , all I can say is "make hay while the sun still shines". Good luck in your efforts to make money with the Brasilian "Real Estate business".smilies/wink.gifsmilies/cheesy.gif

To Joao
written by wiseman, August 15, 2010
The availability of more affordable credit, growth in market size & pent up demand are main reasons for the increases in Brasilian valuations. This is not dissimilar to many Asian markets - Greater China, India, Iran, Singapore, etc. In Mumbai, India luxury apts. built near slums (favelas) are being priced over U$5 mill. on average, depending on meterage. Same in Durban, SA, Tehran, & various Chinese cities.

Re. making hay while the sun still shines, all these markets move in cycles & 1 has to be careful where 1 steps into the cycle & has nothing to do with Brasil per say. Some of these markets tend to be highly speculative & opportunistic (Vancouver, Canada) & some are based on solid fundamentals of pent up demand, income growth, etc. 1 just has to do 1's homework in that regard.

Bank mortgage rates (as most places in the world) are based on the client's creditworthiness, amount put as down payment, etc. In some countries banks have/had looser standards (US) & in some countries the banks standards are more stringent (Brasil). If a borrower today in Brasil has his/her documentation in good order & meets the qualifying recs., there are no 'hinderances'. Try getting a mortgage today in the US. Unless you walk on water, the banks are unwilling to lend.

Another thing many people dont know - in the US for example, if a client defaults, the lender by law can assume control over the client's collateral assets, to cover for such loss. In Brasil, I believe, there is no law yet that gives lenders this right, so they build into the loan rate additional basis points to cover for such risks.
wiseman
written by João da Silva, August 15, 2010

In Brasil, I believe, there is no law yet that gives lenders this right, so they build into the loan rate additional basis points to cover for such risks.


Here also, yes. Though it doesn't (and will never) affect the "low income" class of borrowers from CEF and BB. Your friends at HSNBC, Satender, etc; will never even talk to such borrowers. If you have any doubt, please advise your "faxineira" to try for a loan in such "privatized" banks.smilies/wink.gif
To Joao
written by wiseman, August 15, 2010
Most of the low income folks (Class C) get their loans from Caixa, BdB & Bradesco. The 'foreign' banks like HSBC & Santander primarily serve the Class A & B (consumer) & Agribusiness (HSBC) & Commercial Businesses (Santander).
To Joao
written by wiseman, August 15, 2010
As a matter of fact, my faxineira was qualified into the Minha Casa Minha Vida program a few months ago.
wiseman
written by João da Silva, August 15, 2010

As a matter of fact, my faxineira was qualified into the Minha Casa Minha Vida program a few months ago.


Mine also got into this program to "enlarge" her home!

Don´t get me wrong. I am fully in favor of such people getting financing to build their first homes. Provided the homes built obey the building codes and there is proper urban planning. Unfortunately, most of the cities have no urban development plans nor stringent building codes. The "standards" are quite flexible. The result is proliferation of favelas (of all classes) over a couple of decades in a small area or founding of Mega Cities without any infrastructure. This is what is happening in Brasil.

Ch.c made some very interesting comments about skilled and unskilled labor in the construction industry and he is absolutely right. Brasil has very good engineers and abundant qty of unskilled and semi skilled labor , unfortunately too many "political managers" and too few "professional ones". Sadly, it is very difficult to deal with the Political managers that lack any logic, let alone that of Engineering.smilies/sad.gifsmilies/sad.gif
The availability of more affordable credit
written by ch.c, August 15, 2010
Welll Mr wiseman I could too offer you MORE AFFORDABLE credit at 100 %, if you wish. But only if you have good collateral !
What do you mean by more "affordable credit" ????
It depends of the rate, not the availability of credit !

And 12 years ago in the USA, namely in 1998, rates were NOT at 9 % ! But lower !
And today, in the USA, you get LOWER than 5 % with a FHA,FHLB, Fannie Mae and Freddie Mac mortgages.
And 50 % of all mortgages are made by Fannie Mae and Freddie Mac alone !
Somewhat funny that I a Swiss, residing in Switzerland, knows better the U.S. rates than You the NOT SO wiseman, a Yank residing in the USA !
But so it is !

Better yet, for example only, assuming from 4,5 to 9 % this is TWICE as much !

And if you pretend that in Brazil the current rate is 9 % then it can only be HIGHLY SUBSIDIZED MORTGAGES, since the Government Borrows at 10,25 % & RISING (10,70 FOR 3 MONTHS FORWARD), for very short term term rates, and at 11,86 % for 10 years.
How can anyone borrows at a lower rate than the Government ?
How could an intermediary (bank) borrows at a LOWER rate than the Government and make money by lending at a lower rate than the Government is willing to pay, and still make money ????
VERY FISHY without HEAVY HEAVY Government subsidies !

And in Mumbaï with their 5 millions dollars condos ?
Wellll lets the violins play ! Just a fairy tale similar to the Brazilian one : sugar ethanol was oil competitive at 35 dollars, but ethanol refineries lost money when oil was at 99 dollars average in 2008 !

In Moscow too they had similar prices in 2008. DOWN 50 % in ONE YEAR---if not more.
Same in the UAE !!
Welll now they have the batterias !

And with my usual sarcasm.... Monaco, condos prices are at 40'000 to 120'000 EUROS....PER SQUARE METER ! And did not went down at all...in 2009 ! Very True !
IN A WAY, Mumbai is VERY VERY CHEAP. The highest Mumbai price is by far not even the lowest Monaco price.
smilies/shocked.gif

Eventually Joao could find out the actual Brazilians approximate mortgages rates for let say 10-15 years or so.

Last but not least
Somewhat Very Very Laughable that the median US residential real estate price (homes & condos) are at 180'000 dollars or so.
MEDIAN meaning 50 % higher, 50 % lower !

A THIRD WORLD COUNTRY, AS I STATED MORE THAN ONCE !
For this price, over here, we dont even get a 25 sqm studio.

in my view you should STOP the war in Afghanistan and Iraq. And with the money destroy your 180'000 dollars housing, and rebuild new and better ones.
REAL ESTATE BOOM Guaranteed for 2-3 decades!
Collapse in unemployment rate Guaranteed too, for years and years to come since by definition 50 % of all your housings would be be replaced !

And it is even more funny that your real estate median prices are at 180'000 dollars in a country with a NOT SO LOW 40'000 dollars GDP or so... PER CAPITA !
And even more and more funny...that YOU CANT STILL NOT AFFORD !
Because with a 180 k housing, 10 % down, the mortgages at 4 % would represent about 6500 dollars yearly, plus let say capital repayment of about 2000 dollars yearly, the montly payments would be about 700 dollars !
And millions millions and millions Yanks cant even afford this !!

JOAO "In fact I had asked you specifically if you went through his website, under his 3rd article. "
written by ch.c, August 15, 2010
Of course NOOOOO I did not !

On the other hand your "From his name and the writing style, one could make out he is not a Brasilian"

Wellll...is Da Silva really a brazilian name ?


We have many Da Silva over here, with Swiss Passports ! Are they not Swiss, in your view ?

Believe it or not we even have many family name ending with....EIN, such as Goldenstein, etc ! Are they not Swiss...in your view ?

Hmmmm smilies/shocked.gifsmilies/wink.gif, funny your statement sometimes !

Is Serra NOT the son of Italians immigrants...thus not a Brazilian ? smilies/cheesy.gif

Thus who are brazilians except the Indians natives ? NO ONE...by definition...using your analysis !
Same in America by the way !
So why do NON brazilians elect NON TRUE BRAZILIANS, and NON TRUE America elect a Black, non Indian either...until proven otherwise !

On Ruban-garbagam, welll, eventually, he is as Brazilian as Iniacio your national Robbing Hook, twice elected by You the Hooked !
Next one is may be going to be Dilma the Hooker !
smilies/grin.gifsmilies/grin.gifsmilies/grin.gifsmilies/cheesy.gifsmilies/cheesy.gifsmilies/wink.gifsmilies/wink.gif
Dont worry, money will keep flowing freely...IN THE SENATE, CONGRESS AND THE PALACIO AT THE PLANO LATO !
And as freely in the Sarney Bunker !
After all...LAWS MUST BE PASSED pretended Iniacio !
Regardless of its true price as in all democracies, pretended Iniacio !
smilies/grin.gif
And back to Ruban-garbagam, funny with your reference to his article of UNDER CONSTRUCTION !
And then HE has the audacity to write that the "Brazilian real estate construction is widely considered commendable compared to other countries witnessing rapid growth"

And better yet HE disagree with me on LOW QUALITY despite in the same article above HE HIMSELF CRITICIZED...THE LOW QUALITY !


Sorry Joao, I cant disagree more WITH YOU !
Ruban-garbagam IS A BRAZILIAN WITH A BRAZILIAN PASSPORT !
I bet HE too even got a SP University licence found in a detergent pack.
Real proof that Superior Educated Brazilian HE IS.

Glad that over here the brazilians dont have such HIGH education !
We thus can make good use of them.
PRODUCTIVITY & EFFICIENCY !
Wiseman "are being priced over U$5 mill. on average, depending on meterage. Same in Durban, SA, Tehran, & various Chinese cities. "
written by ch.c, August 15, 2010
Could you please provide your sources for the above cities.

In Teheran a nice but not luxurious condo costs US$ 20'000.- ! No typo. TWENTY THOUSANDS U.S. DOLLARS AS OF 2008...AND BOOMING prices FROM THE EARLIER YEARRRRSSSS !
And this was as per a Bloomberg article, which unfortunately I no longer have, but remembers perfectly.
Thus more than doubtful there are even a few costing 5 millions dollars.
Unless you speak in whatever african dollars !

And in Chinese cities ? Ohhhh yessss in Hong Kong. WHERE ELSE ?


Dont mix up with a few PALACIOS STYLE HOMES even in very poor African countries.
You are talking about condos not houses !
To cartisian
written by wiseman, August 16, 2010
put on your glasses & read idiot, the $5 mill + is for luxury apts. in Mumbai, India.

Chinese cities w/b Beijing, Shanghai, Shenzhen, etc.

And what w/b the meterage of this 'nice' apt. you are quoting for U$20K in Tehran.

All of this info is available on the net in the various country pubs.
To cartisian
written by wiseman, August 16, 2010
U are wrong about US rates. The below 5% is for people of hi creditworthiness who put more than 25% down. U are also not factoring the up front 'points' that have to be paid to 'buy' down rates.

U have a tendency to twist things out of context & U also happen to be extremely defensive & negative about everything. I wonder how much money you really make.....
WISEMAN "The below 5% is for people of hi creditworthiness who put more than 25% down. U are also not factoring the up front 'points' that have to be paid to 'buy' down rates. "
written by ch.c, August 16, 2010
1) It depends the length of your mortgages...of course !
2) Your 25 % down etc etc etc is WRONG TOTALLY WRONG WITH FNM, FRE, FHA, FHLB ! Why dont you read THIS :
http://noir.bloomberg.com/apps/news?pid=20601109&sid=a1wC0JBGED_w
And they pay down 3,5 % DOWN if I can read the numbers properly in English, but you who know better......tell me what you read !
And this is for JUMBO LOANS, not even conventional loans.
3) Sorry sorry I made an important ERROR !
FHA, FHLB, FNM, FRE provide now 97 % of all mortgages. thus I was way...TOO CONSERVATIVE !
PROOF WRITTEN IN THE SAME ARTICLE AS ABOVE !
SORRY FOR YOU THE NOT SO WISEMAN !

4) Are you implying that all Americans with truck loads of credits cards debts....should get MORE CREDIT WITH MORTGAGES, and nexdt to ZERO DOWN ?????Wellll I bet that You voted for the re-election of Bush in 2004 !
It was not a river of creditsss flows...but oceans of credits...with no proof of income, no proof of exisiting debts to see suitability.
And when the tap was closed, you obviously have NOT voted for the Reps !

Me negative ? Welll realistic...sadly. Proven above. I invent NOTHING !

As to the upfront points...wellll...the national average is 0,6 in America. Suffice to take a 5 years mortgage and you get 3,5 % + 0,6 for points = 4,1 % for an average credit worthy citizen.

Over here,in Chwitcher-land, we now pay 2,25-2,50 % for 5 years, 2,5 - 3 % for 10 years !
The majority of mortgages are first 5 years, then 10 years.
ZERO FEDERAL GOVERNMENT SUBSIDY
ZERO STATE SUBSIDY
20 % DOWN ON 70 % or so % OF THE MORTGAGES.
NO POINTS, NO HIGHER RATES FOR JUMBOS. AND NO TRICKS AS YOUR 5/1 ETC ETC ONLY BULLETS MORTGAGES ! But we have also other maturities of course. Some longer, some shorter, but I gave you the 2 main ones.
SMALL CLOSINGS COSTS.
PLUS...OBLIGED TO TAKE AN INSURANCE in case we will become unemployed, harmed in accident, die, etc etc. Insurance not that expensive !
We could go to 5 % down payment...but then you have to show decent size liquid collateral (stocks-bonds-cash,CDs,hedge funds, mutual funds)

AND BELIEVE IT OR NOT, NO PRICES DOWN IN 2008, POSITIVE IN 2009 !

As to how much I make ? Wellll I wont tell you, neither to my tax people except what I show them.
My job ? Independent hedge fund manager. Managing about 400 millions dollars, from my home office, no worker or assistantsss or secretaries, no salary, no office rents in the city !
In short HIGH PRODUCTIVITY, VERY LOW COSTS LOWER THAN EVEN KENYANS !
Ohhhhh and I am also in partnerships with a few JV.
One is we have built from scratch a PREMIUM GOURMET COFFEE FARM IN CENTER WEST,BRAZIL USING PIVOTS CENTERS FOR IRRIGATION ! aND WE ARE NOW VERY CLOSE TO SELL THAT FARM ! What we built was not only the producing farm, but also all the distribution channel to medium and large wholesellers in Continental Europe, UK, Russia and Middle East. We also have a "small" warehouse in Italy.

ohhhh we want to do USA residential real estate in one of my other JV. But we will borrow Chwiss Francs. We are well connected with local banks. WE DO NOT WANT U.S. banks rates robbers and want to play the currency at the time than the real estate play.
so much easy...with Chwiss Banks !

OK BUDDY ?

And for your info only, in Geneva alone the very conservative estimates of clients assets are about 1,8 trillion dollars.
VERY CONSERVATIVE...SWISS DISCRETION OBLIGE ! The 1,8 trillion is a public estimate as of early 2009 published after Madoff !
Over here, intermediaries lost 10 billions or so. Bot bad for a 450'000 state ! But this was by far not from local investors, but foreigners !

And my cursus is 30 years of work for Americans Brokers in Geneva. 1972-2002 !
Merrill Lynch for 14 years, Prudential 14 years and 3 years in between in a small shop. Retail broker at Merrill, institutional at Prudential. Senior VP investments. But I laughed with my title. I did earn 1 cent due to my "title". We were simply paid on commissions we generated. + Bonus. Nothing else !
continued
written by ch.c, August 16, 2010
Ohhhh and I forgot to add that now in the USA, some are getting 2 % mortgages rates.
Sadly I cant find the source to show you. It was also in Bloom-stein ! But trust me, trust me ! I have nooooo reason to invent anything. Was it eventually for some army employees or soldiers ?
I believe so but not sure at all !
...
written by Ruban Selvanayagam, August 16, 2010
Thank you for my newly coined name - you may be pleased to hear that I've been called worse! My aim with these articles is to be objective as possible and if they come across in any different manner - it never has nor will be my intention. I am primarily an investor with a strong interest in Brazil and have absolutely no reason to write in a bias manner. For those who feel so strongly about against such 'propagandist' facts that I have merely referenced from construction periodicals, magazines and public Brazilian statistical websites - perhaps a counter article would be an idea? (without the expletives and aggressiveness if possible please - we are adults here aren't we?)
My aim with these articles is to be objective as possible and if they come across in any different manner
written by ch.c, August 17, 2010
and then add - we are adults here aren't we?

Yessss and some adult author wrote...low quality is a problem and when another adult acknowledge that yesss it is a problem, the author say Noooo low quality it is not a problem !
smilies/shocked.gif
So are you an adult, with an adult common sense, or an adult with a child brain ?
smilies/cheesy.gif



And the author pretend to be a specialist as per his bibliography !smilies/cheesy.gif smilies/cheesy.gif

And if you are "just" an investor as you stated, then investing YOUR money is fine, but why write articles and why have a site
http://www.brazilinvestmentguide.com/brazil-property-real-estate-land/
with Investments Opportunities ?????

Conclusion
In my humble view you are a REALTOR !
Exactly the ones who were highly criticized...in another article !
Investor is not Realtor, and a Realtor looks for Investors !

Fishy that you state of being Simply an Investor.

smilies/shocked.gifsmilies/shocked.gif
...
written by Ruban Selvanayagam, August 17, 2010
Well done, you've caught me - I am a money grabbing real estate agent - how amazingly perceptive of you. I've been buying property in the UK for 5 years now and have been interested in Brazil since my first trip here in 2007. I am also aiming to set up a microfinance organisation over here and am actively looking for investors - hence the desire to boost my profile on all fronts.

Take what you will from my the objectives of my website - I am far from a person who will hide my experiences of doing business in this country - and don't claim to be a 'know all' as your replies infer. I am here to state what I am seeing and witnessing day-to-day (would having a knife pulled against me be enough for you or would that simply be a plea for sympathy?!)
Ruban Selvanayagam
written by João da Silva, August 17, 2010

I am also aiming to set up a microfinance organisation over here and am actively looking for investors


Is it just for home loans to low income group of buyers or to finance small businesses also? i.e like that of Dr.Yunis? BTW, I read sometime ago that his bank was planning to set up shop in Brasil.
...
written by Ruban Selvanayagam, August 17, 2010
Yes, reading his book was the main reason I wanted to do it. However, to say there is a lot of red tape to set up this kind of organisation out here is a severe understatement and - as with a lot of things in Brazil - each lawyer has a different way of interpreting the creation of a non-for-profit org. I actually contacted Grameen about a year ago about their set up in Brazil and they said nothing was established (and actually encouraged me to go ahead) - João, can I ask where you heard this from? That really would be excellent news...
Good that I (grabbed you - investor or realtor !
written by ch.c, August 17, 2010
sorry to insist, but still you contradicted yourself on low quality construction ! By stating in your article it is as problem then answering me it is Not a problem.

As to microfinances, just fior your information
Welll my country has the world largest share of it. Of course not as "beneficiaries" but as providers !
Ruban Selvanayagam
written by João da Silva, August 17, 2010

However, to say there is a lot of red tape to set up this kind of organisation out here is a severe understatement and - as with a lot of things in Brazil - each lawyer has a different way of interpreting the creation of a non-for-profit org.


Well said.smilies/smiley.gif

João, can I ask where you heard this from? That really would be excellent news...


I have heard about Dr.Yunis for years, though the name Grameen escaped my memory. I heard about their attempt in (I think Estadão) first and later on in some c**ktail circuit. Their response to you is absolutely correct. Nothing was established, probably because of the red tape and many other "political reasons".

In my humble opinion, in the new government starting 2011, the states will have more autonomy regarding the development of infrastructure,housing,urban planning, etc; depending on the candidates who get elected. So your idea may take off and I think you should grit your teeth and wait until then.

BTW, do you also use the screen name of "Wiseman"?smilies/wink.gif
ch.c
written by João da Silva, August 17, 2010

sorry to insist, but still you contradicted yourself on low quality construction ! By stating in your article it is as problem then answering me it is Not a problem.


That is enough, Herr.Dok. If you had listened to my humble opinion before, you wouldn't have gone to this length to extract the "confession" from Ruban.smilies/wink.gifsmilies/cheesy.gif

Welll my country has the world largest share of it. Of course not as "beneficiaries" but as providers !


If such is the case, why don't you give free advice to people like Ruban (and me) who are concerned about the underprivileged and help them to make their projects viable ? Have you forgotten your venture in Vietnam?

Brasil needs a break from the political hyenas and you as well as I know it, don't we?

...
written by Ruban Selvanayagam, August 17, 2010
I'm a bit tired of this realtor / investor debate - honestly don't feel I need to explain myself and anyone who wants to know who I'm really about can drop me a personal email at rubanselva@gmail.com and I can forward on references and further information about my credentials.

Re: microfinance - I have been speaking to a number of organisations in Brazil over the last year or so and, yes, there are a lot of them around. However, whilst many of them have good intentions - they do not follow the model originally created by Yunis. The biggest and most successful microfinance organisations in Latin Amercia are in Bolivia, Peru, Ecuador etc. - if you look at the Kiva website (a now well established voluntary organisation that markets micro-finance organisations who fit certain criteria) - Brazil does not even have one spot on their listings. This is pretty shocking considering its size and levels of poverty that still exist in the country. Not sure how much truth there is in this, but I have been told that several - in reality - operate as agiotas (loan sharks) with a shop front of being a microfinance organisation. For these reasons (and more) I feel there is a huge potential for creating something that is real and 100% accountable.

Do you really think waiting for another few months and then a further who knows how long is really worth it? If anyone is reading this and interested in chewing the fat about its potential (and indeed getting the ball rolling) would be great to chat...
Ruban Selvanayagam
written by João da Silva, August 17, 2010

Do you really think waiting for another few months and then a further who knows how long is really worth it? If anyone is reading this and interested in chewing the fat about its potential (and indeed getting the ball rolling) would be great to chat...


I have registered my e-mail in your website! Should know how to contact me!! BTW, where exactly in Brasil, are you located?
...
written by Ruban Selvanayagam, August 17, 2010
I am in Rio de Janeiro, but looking to move to São Paulo...

I have not seen your message? Do you mind emailing me at rubanselva@gmail.com - thanks...
Ruban Selvanayagam
written by João da Silva, August 17, 2010

Do you mind emailing me


Done. Will be in touch.
Joao " Have you forgotten your venture in Vietnam? "
written by ch.c, August 19, 2010
1) Welllll it was not really CHARITY ! Except "charity" to one of my family member ! NO THE SAME ! smilies/cry.gif
And on top was taken for a ride !
smilies/angry.gif

2) your "If such is the case, why don't you give free advice to people like Ruban (and me)"
Because I am NOT connected to them. But if you want to be successful, then the least is to be Transparent Financially to your donors & potential donors. And not doing it the Anglo Saxon way, or European way not any better.
BUT THE SWISS WAY ! The financials of the charity must be fully disclosed in the charity site.
And when disclosed, NOT show as the Anglo Saxons do. Sadly it is NOT uncommon that they have about 20 % of admin costs PLUS about 20 % of money raising costs. And these costs are only for costs in the HQ in which the country charity is registered, and NOT the obvious admin costs where the money goes to.
Dont forget that Charity is one the World Largest Industry even in developed nations. It creates a lot of well paid jobs...IN DEVELOPED NATIONS ! SADLY !

It happens that I know a lot more than what you think I know, on charity !
I am a giver. Very Generous giver. I have my own Private (f**k...family smilies/grin.gif) foundation.
And believe it or not, despite being Swiss, I dont give to Swiss charities. WHY ? Because either they are not to the standard I expect in Financial Transparency or because they are but then they are very successful and thus dont need my money.
That may seem contradictory, but it is not.
My heart goes to GENEROUS hearts, but not very smart money raisers ! I give money but then I expect THEM to be smarter on how to effectively raise money.
In short....creating a website in the hope some people will find it and give money, is a thing of the past. Failure (little money raised from individuals here and there) is almost a Guarantee !

Better to locate where the BIG money is. Namely very wealthy people, but better yet Corporate Donations.

As you want more specifics, here is one example of a very very very successful Swiss Charity :
STARTED IN 2003 by 2 young Swiss guys doing good mostly in the North of Thailand but also now in the neighbours countries.
2003 money raised, 125'000 swiss francs
2009 about 3'200'000 swiss francs
NOT BAD FOR THEIR 7TH YEAR !
Much much much better than 99,99 % of the hundreds of thousands charities available on the web for their sustainable money raising growth rate.
MY HAT....TO THEM !
How did/do they do ? Wellll here are their "secret$$$$ to succe$$" : suffice to have a look at their website and immerge yourself at what is OBVIOUSLY THE KEYS TO SUCCE$$ !
And believe it or not, a near copy and paste of their ideas dont have any patent or legal infringments !
smilies/grin.gif

UP TO YOU JOAO AND RUBAN
their charity is Child's Dream and their site is
http://childsdream.org/about-us/finances/ and pay attention not only to the details of their financial transparency, but also on their ADMIN COSTS ratios.
And not the least, look at in how many pages they do "caress the necks of their generous corporate sponsors" ! Suffice to put their logos in the charity site. For profits corporations, always accused of making "too much" profits are very keen to be "connected" with Charities !

Good Ideas are only good if and when applied.

Your "logical" question could then be...do I help this Charity ????
NOOOOOOO....because just look at the deep pockets of their known sponsors, 100000000 % more wealthy than I am.
And Noooooo because re-read above what I wrote and to who I give !
I am always (100 % of the time, not even 99,99 %) by far far far the largest donor to who I give. On the other hand I expect them not only to be GENEROUS HEARTS but also...TO BE MORE CLEVER ON HOW TO RAISE MONEY...OUTSIDE OF ME !

Please, please, when looking at the site of Child's Dream, dont read in diagonals. But read everything, slowly and carefully.
And better to re-read 3-4-5 times at different times, so that your imaginations will change and grow and at the same time you will be better immerged into....HOW TO SUCCEED in raising charity money !

and never ever succumb to money extortion from the corrupted locals. Give them one nail and you become part of the problem, not the solution !
ch.c
written by João da Silva, August 19, 2010

1) Welllll it was not really CHARITY ! Except "charity" to one of my family member ! NO THE SAME ! And on top was taken for a ride !


Welcome to the club of suckers.smilies/cheesy.gif

Great and objective essay, ch.c. No Brasilian nor American bashing, just cold analysis.smilies/smiley.gif My hats off to you and when you visit our state, the first 6 rounds of Cachaça are on me.smilies/cheesy.gif

I honestly believe in teaching people (especially the youngsters) how to fish and not to give them away. That was the reason why I put forth the original question to you.

Ruban has a cause like our distinguished "Afro-American-Brasilian" blogger DnB and I like to give such people a nudge. Hope you understand my principles.

Having said that, re your comment:

and never ever succumb to money extortion from the corrupted locals. Give them one nail and you become part of the problem, not the solution !


Well said. Not only you become part of the problem, but...but... get into more problems.smilies/sad.gif

BTW, I treat such "corrupted locals" with disdain and thus am not a very popular figure among them. smilies/angry.gif
Joao "nor American bashing, just cold analysis"
written by ch.c, August 19, 2010
Hmmmmm not so, not so !
Anglo Saxon includes America, to my knowledge !
And about admin costs of 20 % PLUS money rasising costs of also about 20 %, plus some well hidden costs appearing nowhere in these 2 costs, means GIVE ONE DOLLAR to an American or British Charity, and AT BEST 60 cents go the country for which the dollar was supposed to go.
Better yet, those at the charity HQ, with a MONTHLY SALARY, sometimes very very generous also receive PER DIEM when they are DOING GOOD in a poorer country.
But these PER DIEM are not charged to the HQ accounting (the salaries are) but to the NON PUBLISHED SUB ACCOUNTING of the receiving country. So that these PER DIEM are seen nowhere from the donors !
And about salaries at the HQ. Believe it or not early this year I saw an article stating the Nbr 1 at a large USA Charity was paid 1 million dollars PER YEAR !
As shameful as this was, welll, sadly the article did not specify what earned let say the other 9 largest salaries..if you see what I mean !
I believe from what I vaguely vaguely remembers this charity was
FOOD FOR THE POORS !

This is not bashing, just cold analysis...You stated !
Then all my critics are not bashing, just cold analysis...SADLY !

And just refer to Ruban comments, on the corruption going into Brazilians and even foreign charities doing good in Brazil.! no bashing either, just plain TRUTH...SADLY !

Anyway...good luck to you and Ruban. I am pretty sure that you will be disappointed by the strength and power of the corrupted.
And frankly speaking, in my humble view, No foreign charity should do anything in Brazil ! Brazil has a not so low GDP per capita !

Up to brazilians to share BETTER !
And for brazilians charities doing good in Brazil, well...up to them ! Some articles have been written about it, including in this site. A well known NON secret that money is not only...NOT GOING to charity, but also use THE VOTE BUYING system to become a beneficiary of what was not diverted by those corrupted to the roots !

Ohhhh and a final word about Dr Yunis as both you and Ruban wrote. To my humble knowledge his name is YUNUS not YUNIS !
But this is a detail in our disagreement !
After all the majority is always right with 2 well informed persons (You and Ruban) against myself, 1 APPARENTLY NOT informed basher and ranter, pretend the 2 in the majority camp.
Still I would bet that it is YUNUS and not YUNIS !
smilies/grin.gifsmilies/cheesy.gifsmilies/wink.gifTake no shade or anger. This is just my usual sarcasm !
To Cartisean
written by wiseman, August 19, 2010
U have an interesting resume. & congratulations on the gourmet coffee farm in Brasil. As a good hedge fund operator I'm sure u are aware that there is alot of money to be made here in Brasil, despite the bad infrastructure, street kids, naval gazers, destroyed forests, favelas, corruption, etc. etc. etc.

Just please do so with some commitment & a social conscience. Things here are getting better.......ever so slowly & I'd rather live in Brasil than China, India Russia, Indonesia, Central Europe, the Spanish countries, etc.
Just please do so with some commitment & a social conscience !
written by ch.c, August 19, 2010
We do better and more for our workers than all our competitors !
We guarantee the farm price at the World Market Price.
Meaning a farm price the same as FOB Brazilian port price.
And it is well known fact that the many intermediaries in Brazil make more profit than the producers.
Thus forcing the producers to lower their employees wages...by definition. SAD TRUTH !

And this is only OUR MINIMUM GUARANTEE IN WRITINGS ! Reality being we pay more, but that is discretionary, not mandatory and in our contracts with our employees as the Minimum Paid Price.
Ohhhh and coffee prices are for the time being at a multi yearsss high...if you pay attention !

And from our side we also make more than decent profits. We NOT only produce...but also buy the whole production of our own farm...and then market it..our way !
We are therefore an integrated company... from producer up to the wholesale foreign buyer !
Thus we avoid ALL the many brazilians SHARKS intermediaries !
And our coffee is GOURMET PREMIUM COFFEE !
A long story but basically HAITIAN BLUE COFFEE that we produce in Brazil !

The sad thing about the average brazilian coffee is LOW QUALITY....regardless of what you may read in the brazilian propagandas medias !
Just to give you a simple reality, Colombia Coffee always has a premium price over Brazil Coffee. From 30 to 70 % premium price FOB loading ports.

This said, and as told, we are in advanced negotiation to sell our company. After all should we not sell when the price is at a multi years HIGH, even if that is not the TOP....eventually ?
I would not be surprised that the next owners will screw up over the coming years ! But that wont be our problems but theirs and sadly also for the farm workers...as usual !
My hope ? That wrong I will be !
ch.c
written by João da Silva, August 19, 2010

Ohhhh and a final word about Dr Yunis as both you and Ruban wrote. To my humble knowledge his name is YUNUS not YUNIS !


Ok,Ok, I stand corrected. It was my mistake, but...but....you have to remember that I am just a humble peasant who is yet to find a detergent pack with a degree in it. I don't recall young Ruban correcting me either. Probably he was too polite to do so.

Take no shade or anger.


No way. A great quote: "Take no shade or anger". I am trying to recall who wrote it. Will let the other "English Speaking" bloggers to enlighten me, while you play the role of a "Quiz Master".

Cheers.smilies/wink.gif
To Joao
written by wiseman, August 21, 2010
IMHO, Mohammed Yunus' Grameen is nothing but a loan shark operation. The interest rates they charge are atrocious.
To Cartisean
written by wiseman, August 21, 2010
Good for u. I hope it works out well & the future owners are as enlightened in managing the business as u & your group have been.
wiseman
written by João da Silva, August 21, 2010

IMHO, Mohammed Yunus' Grameen is nothing but a loan shark operation. The interest rates they charge are atrocious.


Sorry, Herr.Wisemann. My exposure to Dr.Yunus´s Grameen is through the media. If I recall correctly, he started it in his home country of Pakistan ( I think East Pakistan), financing small businesses, especially for poor womenfolks to buy cows, set up laundry businesses. As you know, we are far away from that part of the world. Probably, our Geneve based agent must be able to enlighten us further about this.

His business is Loan shark one? You must remember that all the banks are involved in Loan Sharking. May be Grameen has lesser teeth than the other ones. Who knows.

But..But..., Herr.Dok is correct. Avoid all intermediary SHARKS, whether be Brasilian, American, German, Brits, etc; Of course, his messages get lost, because he goes into a tangent many times-just like the author of this article.smilies/cheesy.gifsmilies/grin.gif

Looking for alternatives
written by du 48, September 01, 2010
Credit Unions operate in the southern states of Brazil-Parana and Rio Grande do Sul.

All the following organisations offer sustainable financial investment and banking solutions.

RSF social finance, based in San Francisco
Benchmark Asset managers, HQ in Philadelphia
Associative Economics Institute,Switzerland (Montezillon-Neuchatel)
and Canterbury, England
Triodos Bank UK,Netherlands,Belgium and Germany
Trio or triage
written by Simpleton, September 02, 2010
Du 48 (Duke University 48'?), are you personnally sure these folks are not just a well spoken setup for a trio of ripoffs? I poked around a bit and being nothing but a crazy idiot I came away feeling that they may be only doing triage to set you up for their doctors to cut into your innards big time.
Triage, Poking around and banking ripoffs
written by du 48, September 13, 2010
When taxpayers bail out the banks it's time to ask a few questions about the high risk banking system which relies on taxpayers' guarantee and the bonus culture that goes with it.

International banking regulations are changing, as a result of the past financial meltdown.

While the main banks are seen as legalised gambling institutions it's only right that people look for alternatives- and that will continue,in my view.

Are you in financial distress?
written by Rev. Bill Wallace, November 30, 2010
Are you in financial distress?
Do you need a loan with interest rate as low as 3%?
Are you experiencing difficulties applying for a loan online?
Contact the Window Loan Agency at
windowloanagency@gmail.com

Rev. Bill Wallace

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