No Comments

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




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.
No Comments

Should You Build Rentals to Sell or Rent Them Out in Uganda?



Uganda’s real estate market has been experiencing significant growth in recent years, driven by a housing deficit that is expected to reach 3 million units by 2030. For those considering investing in real estate through rental apartments, a crucial decision awaits: should you build these properties to sell or rent them out for long-term income? In this blog post, we’ll explore the factors that can help you make an informed decision.

Market Analysis:

The housing deficit in Uganda is a pressing issue, estimated to be between 2.1 million and 2.4 million housing units. With a population of approximately 37.7 million and an average household size of five people, the demand for housing is substantial. In the capital city, Kampala, 7 out of 10 households rent their dwellings, making the rental market a prominent part of the real estate landscape. Notably, 6 out of 10 apartments in Uganda are one-room houses, commonly known as “Mizigo.”

Financial Analysis:

Accessing mortgage financing in Uganda remains a challenge, with only 1 percent of Ugandans having access to this option. Rental pricing plays a pivotal role in the decision-making process. According to experts, Ms. Baziwe suggests that affordable rental prices for households typically range between UGX 50,000 to 100,000. Meanwhile, Mr. Agaba, the former president of the Real Estate Agents Association, notes that dominant rentals range from UGX 100,000 to 250,000, with higher-end properties rented between UGX 300,000 and 450,000. People who can afford more often prefer to build their own houses.

Legal and Regulatory Information:

The Ugandan real estate market has faced challenges due to a lack of sufficient legal framework. However, the new Tenants Bill 2023 aims to address these issues. With the new bill, both landlords and tenants can expect clearer guidelines and dispute resolution mechanisms, potentially improving the rental market’s stability.

Location Considerations:

When deciding whether to build rentals for sale or long-term rental income, location is key. Market research is essential to identify target demographics. For example, single houses tend to thrive in city centers or near educational facilities, while 3-roomed houses with compounds are preferred in the outskirts of the city in areas like Nalya, Namugongo, and Entebbe.

Pros and Cons:

Building Rentals to Sell:

  • Pros: Immediate lump-sum profit, reduced involvement in property management.
  • Cons: Limited long-term income, potential capital gains tax.

Building Rentals to Rent Out:

  • Pros: Steady, long-term rental income, potential property appreciation.
  • Cons: Initial investment in property management, occasional vacancies.


Conclusion and Recommendations:

In conclusion, the decision to build rental properties in Uganda ultimately depends on your financial goals, risk tolerance, and market analysis. If you prioritize immediate profit and have a higher risk tolerance, selling may be the right choice. However, if you seek steady, long-term income and are willing to manage properties, renting them out could be more suitable.

It’s crucial to stay informed about legal changes, market trends, and location-specific factors when making this decision. With the new Tenants Bill 2023 addressing regulatory issues, the rental market may become a more attractive option for long-term investors.

Remember that both options have their merits, and it’s advisable to consult with real estate professionals and conduct thorough research before making your final decision.

Additional Resources:

No Comments

It is Important to Survey the land before you Purchase it.

Hello our esteemed clients!

As a trusted Real estate company, we want to share some valuable insights with you about the importance of surveying the land before making a property purchase.

What is Land Surveying?

Land surveying is a crucial process that involves measuring and mapping a property’s boundaries, topography, and features. It ensures that the property’s legal description matches its physical reality, providing you with a clear understanding of what you’re buying.

Knowing Your Property Boundaries

A professional land surveyor will accurately establish the exact boundaries of the land you intend to purchase. This knowledge prevents potential disputes with neighbors over encroachments and ensures you are aware of any existing easements that might impact the property.

Understanding the Topography

Surveying allows you to understand the terrain of the land better. This information is vital, especially if you plan to build on the property. It helps you determine whether the land is suitable for your desired construction, avoiding unexpected challenges down the road.

Verifying Legal Descriptions

Surveying confirms the property’s legal description provided in the title documents. This verification is essential to ensure that you are buying what you believe you are buying. It protects you from any title-related issues that may arise in the future.

Revealing Potential Issues

A comprehensive land survey can uncover potential problems that might not be apparent during a regular property inspection. This includes issues like encroachments, unrecorded easements, or zoning violations that could impact your future plans for the property.

Saving You Money

While surveying may seem like an additional cost, it can save you significant money in the long run. By identifying potential problems beforehand, you can negotiate with the seller to address issues or adjust the purchase price accordingly.

Securing Your Investment

Purchasing a property is a substantial investment. A proper land survey ensures you are fully informed about what you’re buying, minimizing risks and uncertainties associated with your investment.

Before finalizing any property purchase, We strongly recommend investing in a professional land survey. It’s a small step that can make a significant difference in your buying experience and protect your investment in the long term. If you have any questions or need assistance with the surveying process, feel free to reach out to me. We are here to help!


1 Comment

Mbarara City: The Emerging Real Estate Hub in Uganda

Welcome to Mbarara City, an exciting and rapidly growing real estate hub in the heart of Uganda. With its strategic location, booming economy, and abundance of investment opportunities, Mbarara City has become a magnet for individuals and businesses looking to capitalize on the region’s potential. In this blog post, we will explore the key factors driving the growth of Mbarara’s real estate market and delve into some compelling examples and references that showcase its rising prominence.

Strategic Location and Connectivity:
Mbarara City’s advantageous geographic location plays a pivotal role in its emergence as a real estate hub. Situated in southwestern Uganda, it serves as a gateway to the Great Lakes region, connecting major cities like Kampala, Kigali (Rwanda), and Bujumbura (Burundi). The city’s proximity to national parks, including Queen Elizabeth National Park and Lake Mburo National Park, adds to its allure, attracting tourists and investors alike.

Economic Growth and Development:
Mbarara City has experienced significant economic growth in recent years. The region’s diversified economy encompasses agriculture, trade, services, and industry. Notably, Mbarara is a major center for milk production, with several dairy processing plants fueling employment opportunities and economic development. The city’s growing middle class and increasing purchasing power are driving demand for quality residential and commercial properties.

Infrastructure Advancements:
Investments in infrastructure have played a vital role in Mbarara City’s real estate boom. The recently constructed roads like the Mbarara Northern Bypass , the ongoing expansion of the road network including Victor Bwana Road, etc has enhanced connectivity and reduced travel time to and from the city. Additionally, improvements in electricity supply and internet connectivity have created a conducive environment for businesses to thrive.

Residential Real Estate Opportunities:
Mbarara City offers a wide range of residential real estate opportunities to cater to varying budgets and preferences. From affordable housing projects to luxury apartments and gated communities, the city’s real estate market is becoming increasingly diverse. For example, the upcoming Rwizi Apartments by National Housing and construction Company offers modern, eco-friendly homes with state-of-the-art amenities, providing a comfortable and sustainable living experience.

Commercial and Investment Potential:
Mbarara City presents lucrative opportunities for commercial real estate and investment ventures. The growing population and thriving business environment have spurred the demand for office spaces, retail outlets, and hospitality establishments. The establishment of several shopping malls, Mbarara Central Market and Mbarara Industrial Park has also attracted businesses and industries seeking to leverage the region’s economic potential.

Portville Shopping Mall located in Mbarara city center

Mbarara City is fast becoming a real estate hub in Uganda, offering a compelling blend of strategic location, economic growth, and infrastructure development. With its diverse residential options, commercial potential, and investment opportunities, Mbarara presents an enticing proposition for both local and international investors. As the city continues to evolve and expand, now is the opportune time to explore the thriving real estate market in Mbarara and capitalize on its emerging potential.