For a very long time now I have been approached by my friends and mostly my clients who whisper to me “ Herbert how can I also alongside my profession start-real estate” and severally for those that I have tried to share with, I haven’t been able to exhaust and probably give them a thorough breakdown.
When we talk about real estates, we are referring to investments in land buildings and properties. With the population of Uganda growing and continuing to fight for the limited land, the value/price of land and houses will always appreciate irreversibly meaning that investors should consider this an opportunity to make money and thus below are the ways one can start a real estate’s business;
1: Brokerage
When Amity started, we never had lots of money to capitalize this Business, we begun by helping other developers who were established to sell their properties for a commission and as we grew and understood the industry, we were able formalize and handle bigger businesses.
2: The Quick Deal Approach
This approach involves buying land and immediately begin marketing it so that you sell it to any buyer who can pay you more than the amount that you bought it. If you have more money, you can buy an old house, within a prime area, give it a face lift, and sell your new house for a profit.
3: Land Appreciation
Here you buy land from an individual or a developer, keep it and sell it after some years when it has significantly appreciated in value. If you bought a plot of land from us at let us say Ushs4 Millions, after one year or two you would sell it at around Ushs10 Million. In 2 years, it would have appreciated 3 folds. In 3 years, it would be around Ushs15 Million. You can continue the calculation to project how much you can earn in 20 years!
That’s what most of our clients here at Amity buy land for!
Of course, not every area appreciates at the same rate. Some areas appreciate slower e.g. at 10%-15% while others are faster e.g. at 20%
The level of appreciation depends on several factors such as infrastructural development and an example here is that Igongo biharwe- land will appreciate so quickly because water, electricity and the road network reaches these areas and also these areas are near schools, Hospitals, Universities and many other social amenities.
We buy a bigger land and improve it by adding services and utilities including Roads, Electricity and Water. We later alone divide up the land into smaller planned plots and sell them out to our clients for small profits.
4: Land Sub-Division
Here, you can buy a huge chunk of land, sub-divide it and sell plots. This requires a lot of capital since you have to buy extensive land and develop it, for example by constructing roads as well as bringing electricity and water to the estate.
You can also get a lease for a huge chunk of land, sub-lease the biggest portion of it for some monthly income while you develop a small manageable potion of this land.
5: Rental Properties
This also can be done, it involves purchasing or constructing rental houses. This is a good approach for those who have cash and need a steady cashflow, not quick profit.
Such properties also contribute to wealth accumulation by acting as collateral when borrowing money for other investments. Two of the major requirements of borrowing from credit institutions are cashflow and collateral security. Rental properties provide these.
You can also buy a plot of land in a prime area, construct a nice home, and rent out this home for a monthly income.
6: Condominium Housing
You can go straight away and buy several units within a condominium and then rent them out for a monthly income.
If you have bigger capital, you buy land and construct a Building, divide it into different units, then you sell out the units.
7: Real Estates Management. You can choose to go into Real Estate Management. You may not own a house but Manage a property owned by someone else.
8:Real Estates Appraisal. Do you know that you can go into Real Estates Appraisal- You offer Professional Real Estate valuation services?
9:Land search-You can help people to complete search and processing of land titles at a fee.
If you’re looking to acquire land in Uganda, Amity Realtors Limited is here to help you buy land in the fast growing City of Mbarara. For more information call 0200931453/0394883574, Whatsap 0777564588 or visit Kyosiga House Level 2 Room 305. You can also check out our website for the available listings
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