Ways To Invest In Real Estate

ways to invest in real estate

Interested in ways to invest in real estate, Think of appreciation of property in Uganda- buy land or a house and improve its value or purchase property and rent it out. We are here to break down the process and share the multiple ways to appreciate value.

Ways to invest in real estate in Kampala

  1. Buy to let property.
  2. This one of the 5 simple Ways to invest in real estate in Kampala to make money. It can be done passively. The investor buys the property, could increase its value or not then they rent it out to the real estate prospects.

  3. Real Estate Investment Groups (REIGs).
  4. Another investor could just probably buy shares in a real estate investment group which has got a committee to run daily business. The investment pathway is also profitable and fully passive for the members.

  5. Online Real Estate platforms.
  6. Real estate’s platforms have been formed online to participate by owning shares to make big investments worldwide so the appreciation of property is not limited to certain conditions like property tax or Insecurity.

  7. Property flipping.
  8. Call it house flipping is on way experienced real estate agencies make money. The agency or investor can buy a house at a lower price and repairs or adds value to that property for resale. In most cases it needs a bit more capital to fully achieve the desired goals.

  9. Renting out some rooms on your home.
  10. This was mainly marketed by Airnb. This real estate policy requires the home owner to have more space on the house. It is loved buy the clients because it is cheaper than hotel expenses however it is not 100% secure due different ideologies in the clients.

is real estate a profitable business in Uganda ?

100%, Real estate properties appreciate with time. According to the Uganda National Bureau Of Statistics, there is a profit margin of 8% to 14% profit on real estate transactions in Uganda. Depending on the asset property you want or own already own. We have properties in real estate than can be virtually staged on adverts for quick sales and others could hold for a month or a year to appreciate value while others need to be flipped to appreciate.

Investing in property

Investing in property is the ability for one to purchase or purchase and flip property for the purpose of renting it out or selling for money. These decisions are reached with factors below to favor them. The decision is a bit costly and when the factors are considered and calculated well, it is a long term plan.

13 factors to consider when investing in property

  1. A good neighborhood.
  2. A good neighborhood is a place where one feels safe with people around this consists of security, good roads, good schools and many others. Investing in a zone where crimes are high triggers fears to the public causing scarce demand on the rental property.

  3. Emerging job opportunities.
  4. Areas with emerging or more job opportunities will pull bigger crowds than areas with no rapid developments. The increase in the tenants will again attract more developers in the area where opportunities are thus a good target.

  5. Schools.
  6. The local schools around the area also pull a number of families because most of the parents want to be closer to schools for their sibling’s easier access and safety. A good Rental property deserves to be at least not more than 2km from a local school. The closer the rental property the higher your price unit.

  7. Average rent price.
  8. How much is the average rent price, compare the highest payee and the lowest payee? Then divide by 2 and get the average payment. Compare your new property that you expect and how much will it cost to manage it yearly.

  9. Natural disaster
  10. Developing areas are mostly affected with natural disaster like flooding on roads, every tenant would love not to rent in low lying areas where rains, droughts, landslides and many others affect people’s lives. Natural disasters can even limit developing some areas due to low investing attraction profits.

  11. Future developments.
  12. Developing areas with more future planned structures. A good investor finds out the future plans from the management councils and is sure how he could develop according to the strategic plans of the management councils. The investor is even able to know how much it will cost in future.

  13. Natural resources.
  14. The more accessible the resources the more the rent price, no one can migrate to an area where access to water is a problem. Families and individuals like warm houses where everybody can utilize the resources as needed to human needs.

  15. Condition of the property.
  16. A buyer buying a property already in place, he must consider how much cash will be used to invent the property. The calculations of re-construction will give you how much the property would cost, not leaving out the inflation of the economy and the area where it’s located.

  17. Property taxes.
  18. It’s important to know how the country operates according to taxes. Some countries in Africa would not impose any taxes on property. Having power to purchase a building in Virginia is completely taxable while in Uganda it’s not. Considering where you are decides the policy.

  19. Location.
  20. The closer to urban cities the higher the rent. The number of people finding opportunities normally find shelter closer. So valuing the population incomes and analyzing how much the people could afford to pay for rent gives you a better picture and plan on what to construct.

  21. Crime rate.
  22. There areas where the security is not good enough. These areas tend to attract a less population due to the fear that is inflicted in them. No one would want to invest in a property that is going to take long without returns. Some investments are facilitated by loans.

  23. Property management.
  24. How much is it to manage the property yearly, what’s the average pay and is your construction and purchase of the property worthy to go for? The management companies that take care of property may be high costly compared to the annual rent and that would be a bad factor for investment.

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Hi,am Karueddie working with Edremedy solutions Ltd as a property manager and palm oil broker. i am also a golf addict and love the game as my main hobby. Feel free to contact me
Thank you.