Real estate is a broad term, but it encompasses various aspects including land, houses, apartments and commercial buildings. There are various ways one can make money from real estate- by buying, renting and selling properties, however if you are looking for an investment opportunity it is best to investigate beforehand which aspect of real estate might serve your needs without stretching your resources. That said, there are many reasons as to why investing in real estate presents a great opportunity and below are some of them:
Prices for every pocket: It is possible to invest in real estate at reasonable prices. If you have a relatively small budget, you can still invest in plots of land that cost in the region of Shs5-8m for a 50*100 plot. It doesn’t matter if these seem a bit out of town; with development of amenities such as roads, power and water, the distance from city becomes less of a factor..
Value of real estate appreciates: The value of real estate aspects , especially land, has been consistently going up in Uganda over the last two decades or so. It is the norm for properties to grow in value where there is a economic growth as is the case for Uganda.
Accessible finance: Many people hesitate to invest in real estate simply because they don’t have all the money they need to do so but the good news is that banks are lending. Yes, the rates might not be the most attractive, but if you have a reliable source of income to service the loan then approaching your bank for support for such a long-term investment is not such a bad idea.
Technological advantage: Advancements in technology have made investment in real estate relatively easier than it was, say, 20 years ago. When you build or buy a house or commercial property today, it is possible to advertise availability/find tenants by taking advantage of listing services such as Jumia House (www.house.jumia.ug), thereby using the internet as a platform to cut out middlemen.
The loan pay down: When you invest in real estate through a bank loan, your tenant is actually the one paying your mortgage and not you, which frees up your own income for investment in other areas and giving you a wonderful opportunity for an asset that reverts to you 10 or 20 years later.