Eco Housing from Brazil

In March, The Straits Times reported that Brazilian developer EcoHouse Group had netted $70 million from Singapore investors for three of its housing projects in Brazil, the latest one being the 2,176-unit Bosque Residencial project in Natal, in the north-east of the country.

The promised return is 20 per cent within a year, when the units are resold to Brazilian buyers later at a higher price.

One forumer noted: "How come these people can afford to spend so much money in super expensive marketing, hire the priciest office in Singapore and Dubai, buy football clubs in Brazil and Italy, pay 20 per cent returns in just one year and still make a profit?

"I would believe it if they were developing luxury properties for the highest segment . . . but for goodness sake, it is social housing in an emerging economy!"

A forumer at Valuebuddies.com highlighted that EcoHouse on its website said: "Across its global companies, EcoHouse employs more than 1,000 people in eight countries and 2013 revenues are expected to top £250 million ($400 million)."

He asked: "If revenue is 250 million pounds, and at 23,000 pounds per house, they would have to sell and complete 10,869 houses."

Think of it this way - why is the Government allowing foreigners to profit from social housing? And why would they fly half the world to sell you the project? Why aren't they selling it straight to the poor?