UGANDA, Kampala | Real Muloodi News | Real estate investment can be an an easy way to earn cash. However, if you are not careful, you may lose your investment. All you need is to study and learn about the right opportunities and how to seize them.
This guide will help you start a profitable Real Estate business in any of these ventures in Uganda.
Real Estate Brokerage
As a broker, you help clients buy, sell, and rent properties for a fee/commission. It is easy and rewarding to become a real estate agent or broker.
Jackie Mubiru has been in this business since 2010. She has built her own rentals using her savings as a broker.
“I searched for USh 9m plot and bought it. Thereafter, God provided, and we built three self-contained houses on it. We earn about USh 500,000 a month from them. We use it to pay tuition for our three children,” Jackie says.
To be a successful real estate broker, register your company, and have an office in a suitable location, among other requirements.
According to Vincent Agaba, Founder of the Association of Real Estate Agents of Uganda (AREA-Uganda), agents should be professional, reliable, and well informed.
“Real estate agents must be professional, reliable, and must know how to manage time efficiently.” They should also know the trend of real estate in Uganda,” Agaba stresses.
Among the skills you need to be an agent are the principles of marketing, negotiation, and entrepreneurship. You should be able to negotiate and convince clients that what you are showing them is worthwhile.
Land Real Estate Development
You can buy land and improve it by adding services and utilities, including roads, electricity, and water. You may divide the land into smaller plots and sell it out for a profit.
According to Robert Sekalala, a land broker in Kira Municipality, you can also buy vacant land, hold and sell it later. This type of land usually lacks resources and infrastructure.
The value of such land appreciates with time, and you can reap the benefits. For instance, most rapidly developing suburbs around the city were once bushy with murram roads and few services. Sekalala says those who invested in such areas in the last few years are reaping enormous profits.
“There were no schools, the roads were narrow and murram, especially in early 2000, but most of the suburbs around Wakiso have changed!” Sekalala narrates.
Condominium Uganda Real Estate Development
Rapid growth in towns and the middle class who wish to live comfortably has fuelled a demand for decent houses. In the condominium business, you construct classy apartments, divide and sell the units with titles for a profit.
For an average middle-class, the idea of paying for separate ownership of individual units is a natural step up from the gruelling monthly rent payments endured in most of their professional life.
The Condominium Property Act, 2001 and the regulations govern the development and ownership of condominiums.
Commercial Real Estate Development
In this business, you build and let out rooms for a monthly fee. These are majorly shopping centres, office spaces, retail malls, and hotels, among others.
Mr Sudhir Ruparelia, one of the most prominent real estate investors in Uganda, says: “At the moment, there is too much real estate everywhere. You can make some reasonable amount of money in accommodation if you build something well organised with a large restaurant, a health club and a gym.”
While investing in commercial real estate, a key factor to consider is the location. According to Phillip Muhooja, a real estate agent, “Proximity to the main road, or any highway, is important for a commercial property. That will determine the value of the commercial real estate.”
Commercial real estate developers improve properties and add value to them to increase their net incomes through renovations and upgrades.
Real Estate Management
Some people earn from managing other people’s property. For instance, Robert Mulisa has “kept” property for other people for the past 17 years.
He has earned from it while making temporary homes for his family.
“I started by keeping land for my cousin. He had bought it but did not have a clear plan of what he wanted to do with it, so he asked me to stay on it meanwhile,” Mulisa narrates. “The land was big and fertile, so my wife grew some cassava and a few vegetables she sold by the roadside. When my cousin was ready to use the land, we left with the money he had paid me for keeping the land for a year plus the one from the vegetables.”
And because Mulisa had done such a good job, his cousin recommended him to a friend. To this day, he still makes deals with landowners to stay on their property.
“Under this arrangement, I protect the land from squatters. “When people ask me what I do, I tell them I’m in the real estate business. I started when I had no land or property to my name but out of managing people’s land, I bought a small piece of land on which I am building a house,” Mulisa says with pride.
To seal the business deal, Mulisa signs contracts with his clients, and he has so far worked with five clients besides his cousin.
Rent
Here, you buy a property and rent it to a trusted person. That person may also sub-lease the property to somebody else, but at much higher rates so that you can make a profit.
According to Nathan Amaral, a real estate entrepreneur, the most important aspect to consider when doing short-term rentals is location.
Do thorough research to discover which areas will provide the highest yields. Ensure all the features such as restaurants, shopping, easy access to main roads, are within reach for your clients.
Second, invest in the type of property that is in high demand. Nathan recommends that one bedroom, one bathroom rentals are in demand in Kampala.
Nathan says the secret is finding the right property is the right area. With the right location, you can triple your money.
He says, “Uganda has a very busy short-term rental market. And here’s the powerful thing, and it’s just phenomenal; you can do a sublease and you can get three times your money for that rental.”
READ MORE LIKE THIS:
How I Built a Short Term Rentals Business in Uganda – Part 2
Condominium Housing: A Highly Viable Investment Opportunity in Uganda
Home Renovations Part 1: How to Cut Costs without Cutting Corners
