by InDev Capital | Nov 12, 2017 | Resi Restart Finance Whitepaper
1.Scale without appropriate organizational structure: Developers tried to scale the business rapidly despite the lack of management talent and proper information and accounting systems to manage the growth. The result was lack of qualified workforce, engineers and...
by InDev Capital | Nov 12, 2017 | Resi Restart Finance Whitepaper
At the market peak in São Paulo, there were 650 active developers. Only approximately 120 of these 650 developers launched over R$50M per year. In the large majority of cases, developers were able to generate positive cash flow. The huge increase in prices covered up...
by InDev Capital | Nov 12, 2017 | Resi Restart Finance Whitepaper
One of the biggest drivers of developer behavior for the past decade was real price appreciation in São Paulo. In fact, in the metropolitan area, the average price increase in real terms was 71%. Certain regions of São Paulo, and any major metropolitan area, possess...
by InDev Capital | Nov 12, 2017 | Resi Restart Finance Whitepaper
There are a significant number of families that are created in São Paulo on a yearly basis. For example, in 2015 there were almost 75,000 marriages. Also, due to a net positive migration of young ambitious people into São Paulo, this number of new families and demand...
by InDev Capital | Nov 12, 2017 | Resi Restart Finance Whitepaper
From 2006 to 2013, there was a significant expansion of credit in Brazil. In addition, due to the high demand, banks were lenient by Brazilian standards with construction loans. For example, a developer could receive financing for 80% of construction costs upon...
by InDev Capital | Nov 12, 2017 | Resi Restart Finance Whitepaper
It is important to note that residential mortgages in Brazil are relatively new. In fact, until 2006 there was almost no residential mortgage market. The market worked on an effective cash basis due to the lack of credit and legal regulation in regards to creditor...
