UGANDA, Kampala | Real Muloodi News | Buying a house online in Uganda can be extremely strenuous, but it is not impossible. When Ugandan national Getrude Katende secured a visa to the USA, she thought all her dreams had come true. Finally, she could achieve her dream of buying land building a decent house.
Shortly after her arrival, she secured a job in the nursing industry in New Jersey. Katende worked hard, and would regularly send money to her husband in Uganda, a primary school teacher, and father of her two infant children.
The 31-year-old mother was intent on saving for their dream home. Over time, she sent USh15 million to her husband to buy the land. He told her that with the money, he had bought the perfect 50X50 plot of land in Namere, off Gayaza Road, and even sent her a copy of the agreement. After which, Katende diligently sent money for construction, month after month.
Katende finally returned four years later, only to find there was no house. The land, house and other assets that she had invested in were just ‘air’. While she was away, her husband had married another woman, taken her hard-earned money, and built a house for her instead.
With no other options, poor Katende went back to the USA to start afresh.
Katende’s case is not an isolated incident. Many Ugandans in the diaspora (diasporans) have similar stories to tell.
The idea of making a home purchase without physically seeing the property may seem foolish. However, Ugandans in diaspora who wish to purchase property bahome have little choice.
However, buying a house online successfully is in fact possible in Uganda. Further, our world has changed since the COVID-19 pandemic, which has hastened digitisation in real estate. There are many digital platforms available that the ability to see what’s on the market in Uganda from the comfort of your home is easier than ever.
The hardest part is differentiating between unscrupulous sellers and genuine investment prospects that you would not want to miss.
Below, we discuss the mistakes made when buying a house online, and how to avoid them.
Do Thorough Research
A prospective homeowner, Mr Wilber Amanya, warns that “homeowners and real estate companies upload houses for sale according to prices they deem right because there is no price control. Some may attach prices anyhow because of how they acquired the property.”
He advises his fellow prospective homeowners to ask lots of questions before the deal is closed, specifically if the listing has a very attractive price that appears to be lower than the market price.
He explains that “falling for (unusually) low property prices, especially for finished houses, is how unsuspecting homeowners inherit or buy houses with hidden problems. The trouble starts when the seller is not honest, and the buyer did not probe or was not curious enough and rushed to seal the deal because it was too good to turn down.”
He continued to say, “the solution to this problem is to carry out a thorough background check, independent of the seller, to establish the proof of ownership. You could inquire from the local council leaders or immediate neighbours who have lived close to the property in question for a long time.”
Don’t Trust Family or Friends. Use Professional Service Providers
With so many diasporans being duped by relying on friends and family to make investments on their behalf, it is best to enlist the help of professionals.
Mr Willy Mutenza, the chairperson of Uganda Convention-UK, explains that “we have also seen those who have succeeded [relying on friends and family] despite the above challenges, but end up with uncompetitive or poor quality properties because of shoddy work.”
He continued to say that trustworthy service providers respond to the needs of buyers, investors, and some developers, like Promotar an online property platform that makes it safer and easier for Ugandans worldwide to buy and invest in property, with a particular focus on the Ugandan market.
What is Promotar?
Promotar is a Uganda-focused diaspora initiative supported by the London Chambers of Commerce, UK-Uganda Convention, YuFundMe, MM2Capital, and Indian Diaspora Network.
The Promotar digital platform eases buying property for those in the diaspora. The platform offers transparency by using pre-approved and certified sellers, agents, and consultants, thus reducing the risk of those who want to invest.
Bernard Robinson Magulu, the vice-chairperson of Uganda UK Convention, explains, “By carefully vetting all properties, service providers, and consulting partners before listing, we believe that Ugandans in the diaspora and within Uganda will be confident and secure in their transactions.”
On the Promotar digital platform, you can access all the information you need on any listed property and service provider. It also provides diasporans with digital consultation on finance and real estate.
“With just a click, people can choose the property or service they want, and they will avail the appointed legal partners to handle the process of ownership,” says Magulu.
They also have experts in real estate law customer services, land acquisition, architecture, landscaping, and interior design, among others.
What about Other Platforms?
There is an abundance of online options available these days, but not all of them vet their service providers the way Promotar does. In such cases, it is important to vet them yourself.
The real estate industry in Uganda is not well regulated. Anyone can claim to be a real estate agent without training or licensing.
Before conducting business with an agent that you found on-line, it is important to establish their legitimacy. Ask for references from past clients or fellow agents so you can be sure they are not a scammer. Speaking with previous clients can give you an idea of the agent’s past performance. Then, follow up on the references.
You can also verify their membership with a credible association, such as the Association of Real Estate Agents Uganda (AREA-U). The association can verify their identity, and they have set guidelines which agents must follow.
Besides an agent or broker, a lawyer and professional surveyor is a must. Follow the same vetting process.
While buying a house online can be stressful, it can be done successfully. The Ugandan real estate industry offers a very attractive return on investment, especially because of the gap in housing demand and supply, the rate of urbanisation, and the expanding middle-class.
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