How Can I Start Real Estate Business In Uganda?
Starting an official registered real estate business in Uganda not so expensive compared to the returns that the business pays off. 3 million for the brokerage license and training to Start Real Estate Business, 4 million for the office rent and property (office furniture) and 3 million to invest in marketing such as advertising property in newspapers and social media accounts.
Minimum Required Capital to Start Real Estate Business.
In Uganda, the minimum required capital of a real estate business will flow in different process steps as follows:
Minimum Education level to Start Real Estate Business.
To apply for the agent license, one’s education background is required to have completed ordinary level certificate or it’s equivalent of Uganda’s education system. A commissioner is to serve a certification to only qualified applicants who have achieved both the ordinary and training certificates.
Real Estate training program.
A real estate training is for applicants who are being oriented in the real estate industry. This training orientation provides information from the do’s and don’ts. AREA-Uganda is one of the training institution platforms that is providing free training on an annual basis.
Apply officially for the Real Estate License.
Now apply for a real estate license. The commissioner of the state is given authority by article “Real-Estate-Agents-Bill-2013” to issue certification to the successful applicants. The commissioner is required to issue this certification within 14 days of application.
Office setup, Cell phone bills, office furniture internet bills, photocopies and many others. These items have to be budgeted to have a clear start up. The office workers will also require some little payment for the start. It is advised to always put an office for business in a prime area hence targeting commercial business.
One of the biggest task is marketing, when starting off from scratch, the marketing tactics will need flyer, banners and posters for display, owning a website and maintenance and business cards for official use to new clients. All these marketing costs have got to be on a budget for easy accountability of resources available and distribution.
Continuous education in real estate business.
You have gone as far as this, remember with the Real Estate Brokerage business, you will have to keep updating your education and the license expires in a year. You have to keep up with your license dates before they expire. You are always required to keep paying your license renewal fee annually.
Can You Start Your Own Real Estate Company in Uganda.
Yes, its very possible to start your own real estate company in Uganda. The Uganda article “Real-Estate-Agents-Bill-2013” provides guidance on how to apply for the license and the best practices to yield best business or bad practices that will lead to suspension of your license.
Real estate agent startup costs in Uganda.
Real Estate agent Startup costs in Uganda are not more than 10 million Ugandan shillings. A less break down of the Real Estate agent Startup costs (10million).
3 million for the brokerage license and training to Start Real Estate Business, 4 million for the office rent and property (office furniture) and
3 million to invest in marketing such as advertising property in newspapers and social media accounts. These are the main real estate expenses.
Also find out about what makes a good real estate agent for sellers
Is owning a real estate brokerage profitable.
80% brokers in Uganda say starting a real estate business is profitable because of the large scale commissions (many unlicensed Real Estate salesperson bring property transactions and split commissions with him), networking opportunities, access to the multiple listing system and extra incomes for representing a buying party or selling party. These are advantages of having a brokerage license that gives you authority to do business.
How To Start A Real Estate Investment Business In Uganda?
Investing in the Real estate business is based on factors of property and the investor choices, a real estate investment business is a growing business in Uganda especially the growing population of 43 million people. Let’s dive and see how we can easily start a real estate business.
Have a financial plan to execute project dues and costs. Buying houses and flipping them is one of the investment path to accumulate profit or you could just purchase a house and change it’s face to look awesome hence attracting more potential clients.
- Buying and reselling property. Land/plots are bought and resold after a certain period of time. The time factor matters here. It takes may be 6 months or 2 years for the property to double or multiply value.
- Buy plots/land and construct rentals. The other plan is to buy land and construct rental property. The reward are the monthly payments that will last and you still own your property.
- Constructing apartments for sale. This is a new idea that is taking on the Uganda markets. The investor buys a good piece of land and constructs a number of apartments and finds buyers for the for them
The only cons on this approach is it is a bit expensive and the capital cash inserted in the project takes time to be regained.
Factors that will affect or boost the Real Estate investment business.
- A poor budget plan. Executing a project with poor due diligence will affect the budget no matter how good the property looks like. The costing and construction expenses should at least expect transportation.
- Fraud in the real estate business. There are many fraudster in the real estate market who sell property that is unauthorized to the investors. Following the right guidelines would help you or using registered agents for business transactions.
- Proximity of social facilities like schools, roads, health care. Considering the areas where social facilities are close to the property you purchase will give you a good result in the market.
- Authority zone plans. All areas are gazette for different purposes, please do not choose to construct a condominiums in an industry area. Follow the authority guidelines.
On the points mentioned serve the biggest part of how to start A Real Estate business. Some unpredicted costs may interfere but these will prevail to be the leading ones in Uganda as follows.
- 1. Minimum Education level.
- 2. Real Estate training program.
- 3. Apply for the Real Estate License.
- 4. Business expenses.
- 5. Marketing costs.
- 6. Continuous education.