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Ways of investing in Property in Uganda

Posted by Musbon RealEstate on October 29, 2022
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Investing in property doesn’t necessarily mean buying buildings. There are lots of ways you can invest in property, either directly or indirectly.

If investing in property is something you’re keen to explore, either on its own or as part of a wider investment portfolio to spread the risk, you’ll need to do your research, assess your finances and take the right steps. Follow our guide to property investment to boost your chances of success.

Research your options for investing in property

Property investment can be done in a variety of ways. You might decide to buy a home or commercial property directly, or you could put money in a property investment fund. It’s worth taking the time to explore your options and decide which type of property investment suits your circumstances and needs.

The types of property investment you could go for include:

  • Buy-to-let

  • Property development

  • Buying a new build to sell on

  • Investing in property abroad

  • Real estate investment trusts and other property investment funds

You can read more on these below.

Whichever type you go for, remember that investing in property can be rewarding but it is also risky, so it’s best not to invest more than you can afford to lose should the worst happen. Before investing, you should also make sure you’ve paid off any non-mortgage debts and you have an emergency fund that could cover at least 10months of living costs in case something unexpected happens, such as losing your job.

Buy-to-let

You might decide to invest in a residential property that you’ll let to tenants. If you’re thinking of doing this, visit our collection of apartments https://www.musbonrealestate.com/listings/apartments/

Property development

If you fancy yourself as a property developer, when you buy a property to refurbish or renovate and sell on, you need to know the risks as well as the potential rewards. If you decide you need land to develop , you can as well visit the website and check out the vast collection. musbonrealestate.com

Buying a new build to sell on

Buying a new build off plan, which means before it’s been completed by the builder, could make you money if its value has gone up from the price agreed at the outset by the time it’s finished. You can then sell it to make a profit. Plus, you may be able to add value to the property by decorating it.

This can be risky, however. You haven’t seen the finished property so it might not end up how you expected. The developer could even go bust.

You could run into problems selling the property and be stuck paying the mortgage until you do. The area it’s built in might also not end up being the kind of neighbourhood you hoped it would. If this is what your looking into, visit our wide range of properties or contact our agents to guide you. musbonrealestate.com.

0751925403 / 0778291603- Boniface M

Investing in property abroad

If Ugandan property investing doesn’t appeal to you, buying abroad could be worth considering. You may be able to make money by letting it to holidaymakers while also having a place to go for your own holidays when it’s not being rented out. And if the property goes up in value, you could make a profit when you sell it too.

Before you decide to go ahead, reach out to us and see what we can offer overseas

Real estate investment trusts

Real estate investment trusts (REITs) are companies that invest in property. They make most of their money from rental income.

You buy shares in them that can be traded on the stock market and your money is pooled with other investors to invest in property. As with any other type of share, you make money from the share price going up if you sell them (although it can also go down) and dividends.

REITs have to pay out 90% of their income to shareholders and get tax benefits in return – they don’t have to pay corporation tax or capital gains tax – which can mean bigger payouts.

Other benefits are that they’re easier to invest in than buying physical property and easier to get out of because you can just sell your shares. You can also invest small amounts rather than spending tens of thousands on buying property.  However this is not yet common here. But if you look around , you’ll find something. You however should tread with caution.

Ways to invest in property at a glance

Here are all the main options you can choose from in one handy table.

Direct property investment Indirect property investment
Buy-to-let Real estate investment trusts (REITs)
Property development Property unit trusts
Buying a new build to sell on Property open-ended investment companies (OEICs)
Investing in property abroad Property investment trusts
Property bonds and loan notes
Shares in listed property companies
Property ISAs
Peer-to-peer lending

Written by Musbon Real Estate.

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