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Real Estate Businesses In Uganda

Real Estate Businesses In Uganda.

Dealing in selling, renting and buying of land, houses and apartments, real estate business has presently become a major area of business in Uganda
 
Profit earning is the main focus for all the stakeholders in the real estate business, brokers, managers and the owners of the property among others. The business entails different opportunities, which include the real estate brokerage where a middleman between the property owner and the buyers or the tenants charge a specific fee or is paid commission.
 
Land real estate development involves an individual buying land which he/she improves and then divide it into small units for selling at a profit, commercial real estate development is where an individual constructs units for a monthly fee, condominium real estate development in which an individual/group of individuals construct a building and divide into small units for sale.
 
A real estate management is where an individual manages a property owned by some one else and the Uganda real estate appraisal in which an individual is employed to provide professional real estate valuation services.
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TIPS ON HOW TO GET INTO UGANDA REAL ESTATE MARKET

 

Tips on How to Get Into Uganda real estate Market

Think About Your Reasons For Investing

First things first, you need to be sure that you’re ready to begin investing. There are different reasons why people consider purchasing a property, and it’s important to have a clear vision of your own reasons for getting into property.

  • Are you getting started with property investment as a way to grow your existing finances alongside your other commitments such as a full-time job?
  • Are you using property investment as a tool to generate an attractive retirement fund for later life?
  • Are you hoping to launch a full-time property business, and see your initial buy to let investment as a good first step towards this?

Before finding out how to get into the property market, you need to be sure of your motives behind making a buy to let investment. Once you understand this, you can use this knowledge to help you create a more considered and detailed strategy, as different motives could lead to different decisions being made.

For instance, if you’re investing thinking of getting into property as a way to maximise your retirement funds, you should pay a lot of attention to capital growth prospects. This way, if you decide to sell the property when you reach retirement age, you could make attractive returns on your investment if the property has grown in value over time – on top of the rental returns you’ve acquired over the years.

Is it Worth Buying an Investment Property?

Property investment is considered one of the best investment methods for those looking to generate consistent returns over time. If you understand what’s involved, know your reasons for investing, and have the available funds to so, it’s definitely worth getting into property investment.

Get Financial Advice

Before you even consider how to become a property investor, you should make sure you fully understand how to get into the property market without affecting your financial health. Buy to let property investment is a big commitment and should never be rushed into. While you might think you have sufficient funds to cover your investment, this may not be the case if there are additional costs and fees involved.

This may mean speaking to a financial advisor to learn about different taxes that buy to let investors are required to pay, and to get a better understanding of all the money-related lingo involved with the property market. Investing in real estate is a business venture, after all. When putting a plan together on how to start property investment, make sure you treat the venture like any other business plan by putting a financial focus on your strategy.

Invest with a Property Investment Company

One of the number one tips on how to start investing in property is to enlist the help of a property investment company. Buying property through a company is a good tip when it comes to real estate investing for beginners as it allows you to explore a range of buy to let opportunities from trusted property developers, without having to search around for an investment property yourself.
Property investment companies will do most of the work for you, finding property deals with the most impressive yields in high-growth areas, liaising with solicitors, and even finding you a suitable property management company if you want to make a hands-off investment. Better yet, they’ll be happy to provide potential investors with advice on how to get into property investment as a beginner, along with offering experienced investors advice on how to grow their property portfolio.
A lot of property companies will also offer below-market property prices for their off-plan properties, as well as a guaranteed rental income on certain properties for a period of one or two years. This way, you can get started in property while knowing that you’re in good hands, and be guided through each step of the buy to let process.

Do Property Market Research

While a property investment company will do a lot of work for you, this doesn’t mean you shouldn’t carry out your own research on the Uganda housing market before finding a suitable opportunity.
Not every property investment opportunity comes with the same potential, so if you want to find out how to get into property and benefit from the best returns possible, it’s essential to investigate the Uganda property market. Pay attention to things like rental yields, tenant demand, capital growth, and predicted market price changes, as these are all major components of a solid investment and should make up a big part of all buy to let investment strategies.

If you’re serious about learning how to become a property investor, staying on top of property market news is essential. You should also keep an eye on current blogs

 

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WHY WAREHOUSING SYSTEM IS BECOMING A GAME CHANGER IN THE REAL ESTATE INDUSTRY.

 

Why Warehousing system is becoming a game changer in the real estate industry.

 

Not long ago the real estate sector mainly relied on two major strengths that is residential and commercial but the recent trends in development and trade, and interconnectivity between countries, and natural calamities warehousing system is quickly becoming a game changer in the real estate sector.

 

The business boom and the interconnectivity between East African and demand for high quality purchases, there is a need for a robust supply chain of goods and services and this can be possible with a strong warehousing system.

The ware housing system is set to boost economic growth by lowering the costs of moving goods and thereby increasing the volume of trade across the country and the region. The warehousing system can also be centers for imported goods but also agricultural, minerals and other locally produced resources that can be exported to the rest of the world.

 

But whereas warehousing remains an ideal real estate investment they are things to take note of, the first one is that land purchases continue to attract many players especially targeting prime land at key locations across the country. Therefore, you have to be strategic in looking for key locations.  

 

At the moment one of the strategic locations with prime land that remains ideal for the warehousing system in western region is along Mbarara –Sanga –Kaguta road on Mbarara –Masaka highway. The place is an easy gateway for Rwanda, Burundi, Tanzania and DR Congo, thus having a chain of warehouses here can easily facilitate businesses between Uganda and these countries putting in consideration the reduced transport costs thus making this investment ideal.

But also, this area is located along a standard-good interconnected road infrastructure across these countries making transport of goods and services easier and cheaper. But again, besides the regional markets, change in consumer behaviors like shift towards online shopping and high-quality purchases traders, companies demand distribution centers that are close to the metropolitan areas.

 

The congestion in Kampala City, which is regions shopping area for the western region and interconnects to other regional countries for the supply of goods and services from like Kenya, Tanzania, South Sudan and other foreign countries across the Indian Ocean negatively impacts of the cost of doing business which may include late arrival goods and other costs like fuel

Another factor why the warehousing system should be an interest of every investor in the real estate industry is that it offers an answer to natural calamities which at times frustrates businesses. An example here is the continued breakdown of Katonga Bridge along Mbarara –Masaka due to heavy rains. This is the only major route for vehicles bringing goods from Kampala to other cities in western region but also across borders, its breakdown paralyzed most business, the was imbalance between supply and demand for goods and even prices shot, even some projects like constructions stalled but if there were warehousing system.

 

The Mbarara City-Sanga-Kaguta Road stretch also has some of the other infrastructural services like water and electricity. The coming up companies and government projects strategically position themselves along this area is a clear manifestation of the area being potentially ideal for investment. Government has 325 billion technology, engineering an innovation center at Rwebitete in Sanga town council, a meat processing factory also being constructed along the same area with other factories like milk processing factories Amos and Pearl diaries.

Compared to other real estate investment, warehousing can be an attractive investment because the construction costs are much lower, and takes less time to build, are easy to maintain, and occupancy rates are high.

At Nembabazi Real Estate Ltd we have estates along this stretch and we can help individuals and companies who want to acquire land for warehousing development. Remember even if you don’t operate the warehousing yourself, you can rent, lease it out to companies or individuals that are looking for distribution centers near their clients.

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Build a House or Buy a Complete One: Weighing the Pros and Cons

 
 

 

Introduction

One of life’s most significant decisions is whether to build your own house from scratch or purchase a pre-built home. Both options have their unique challenges and benefits, and the choice you make can profoundly impact your life. In this article, we will explore the pros and cons of building a house and buying a complete one. We’ll also draw insights from various articles to provide you with a comprehensive view of the decision-making process.

Building a House: Challenges and Benefits

  1. Challenges:
    • Time and Patience: Building a house can be a time-consuming process. You may encounter delays due to unforeseen construction issues, permits, or weather conditions. The construction timeline can easily extend, testing your patience. Building a house is a job. Even if you don’t do the actual building construction yourself, you need to monitor what is going on, track the budget, make decisions about everything from plumbing fixtures to paint colors to what type of tile you want at the entry way.
    • Cost Overruns: The initial budget for building a house may not always match the final cost. Hidden expenses can surface during construction, making it essential to have a financial cushion.
    • Decision Fatigue: Building a house involves making numerous decisions, from design and materials to fixtures and finishes. This can be overwhelming for those who are not experienced in construction.
  2. Benefits:
    • Customization: One of the most significant advantages of building a house is the ability to design it according to your preferences and needs. You have the freedom to choose the layout, style, and materials, ensuring that your home perfectly suits your lifestyle. As long as you are controlling the initial construction, building new is better. Exterior sheeting, insulation including all interior walls and ductless aircons, WiFi, water heaters, new electrical with lighting sensors, rain bird showers, alder wood cabinets and granite throughout, it’s a lot better.
    • Easier to spend on what you can afford: Another advantage of building one’s own home is that they pay for only what they want, whereas buying an existing home may have features such as garage, store and verandas which one may not necessarily need and they will pay a premium for them even if they don’t want them.
    • Energy Efficiency: New construction allows you to incorporate the latest energy-efficient technologies and materials, reducing long-term energy costs and environmental impact.
    • Higher Resale Value: A well-designed and properly constructed custom home often has a higher resale value compared to an existing house.

Buying a Complete House: Challenges and Benefits

  1. Challenges:
    • Limited Customization: When buying a complete house, you must accept the existing design and layout. It may not perfectly align with your preferences or needs, requiring potential renovations.
    • Hidden Issues: Pre-owned homes may come with hidden problems, such as structural issues, outdated systems, or maintenance needs. These can lead to unexpected expenses.
    • Market Availability: Finding the right house that fits your budget and preferences in a competitive real estate market can be challenging. It might take time to locate the perfect home.
  2. Benefits:
    • Immediate Occupancy: Buying a complete house allows you to move in quickly, avoiding the lengthy construction process. This is ideal for those with time constraints or those who prefer not to deal with the hassles of building. The nice thing about buying an already built home, is that the time – you don’t have to wait. You may already find all the things you want in a house already built, and be able to move in right away.
    • Known Costs: You have a clear picture of the total cost when purchasing an existing house, with no unexpected construction expenses. This financial transparency can be a relief for many homebuyers.

      Also buying a house would as well be economically viable especially in these current times where financial institutions have started giving out mortgages to their clients who may want to own homes. And from economies of scale, it makes it slightly cheaper depending on the mortgage period since you can enter your house even on partial payments.

      People think the price of developed properties is expensive, but the cost of an acre of land in a prime location around Kampala or Wakiso for example can be sold for over Shs. 280,000,000. Some individuals cannot buy unless a developer buys and maximizes the land.

    • Historical Charm: Older homes often have unique features and character that can be appealing. They may be located in established neighborhoods with a sense of community.