England Land Banking, Asian Plantations, and now Brazilian Eco Housing

Im not familiar enough with Brazil to bring much added value to this but it does appear that over the last 24 months there has been a spate of Brazilian land and housing investments offering silly returns like 20% a year which have gone bad much like spanish housing investments a few years ago.

This site and the comments provide a good summmary of the issues involved.
http://theuniquepropertysite.wordpress.com/2011/11/19/lose-money-in-brazil/

These “investments” are of course being touted in shopping centres and hotels across Asia by some of the same people that pitched UK land banking plots and Asian plantation investments. Behind them are the usual multiple funded wordpress sites defending and supporting the investments, poorly constructed company websites, and PR “news” articles making claims that when checked are not true or not supported but are then quoted by everyone involved in selling or marketing.

Basically the investment sale strategy is show a small project site that has sold out and then get thousands of people to invest in future projects with a proposed payout date in a year or two that is then delayed. It was the Olympics in London was was going to make all those Land Banking investors rich and now its the World Cup in Brazil that is supposedly going to make Brazilian low cost housing or “Eco House” builders rich.

As always these investments are not regulated or protected in any form. Should the investment fail who would you who after to recover the money and in which country ? In the event of the company or investment failing you stand to lose most or all of your investment which based on published experiences to date seems to be the most probable outcome.

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