Offplan properties in Kampala, Uganda.
Since Kampala has some parts of freehold and private mailo land title, Potential investors and buyers have had great time in terms of consistent supply of high end real estates developments to choose from. With so many offplan projects to choose from in Kampala, it might be so hard and challenging to choose or decide where to invest your hard earned money. In order to assist on making your informed decisions we have listed a number of high end and medium places and offplan projects based on customer interactions and interests in Kampala, Uganda.
WHAT IS OFFPLAN INVESTMENT?
Offplan investment strategy consist of buying off a property before it has started its construction or even finished. Once the construction is complete, rather than living on the property, the investor will either sell,hold,or rent out the property for supplemental income.Many of these investment opportunities exist. But before an investment is made, a priority for the investor should be to clarify with an independent and qualified quantitative land surveyor to make a feasibility study the risks invovlved.
WHAT ARE THE ADVANTAGES OF OFFPLAN INVESTMENT?
One of the advantages of being on offplan is that you get to decide on how much involment you will have in the project. Whether you want to buy an offplan to get rental income,you don't have to do all the work yourself. Many companies, such as those who manage the furnishing of the property and established management companies, can take advantage of buying in bulk. This counts for heavy discounted deals. Most advantages include;* comparatively cheaper than fully completed units
* Flexible payment plans
*Fewer upfront expenses
*Greater capital gains following the property's completion.
DO I NEED A DEPOSIT TO KICK OFF MY OFF-PLAN INVESTMENT?
Each investment can be different but one of the major advantages of an off-plan investment is the downpayment system. The benefit is that instead of one large deposit, you can do fragmented payments. This plan allows you to pay in regular installments. In the UAE, forexample, instead of having to pay the 25% deposit, you can use a down payment plan.
CAN I GET A MORTGAGE FOR MY OFF-PLAN INVESTMENT?
It is possible to get a mortgage in kampala the DTB bank, Stanbic bank, Standard chartterd bank all these provide mortgages for these types of investments. Due to these investments carrying more risk than tradtional mortgages, the investor can expect to pay a higher interest rate than those who purchase traditional mortgages. The rate can vary based on how close the project is to completion and which developer is involved,the closer the project is to completion the less expensive the mortgage is.
WHAT KIND OF PRICES AM I LOOKING AT FOR OFF-PLAN PROPERTY?
As with most investments the risk is factored into the price the investor pays. The higher the risk for the buyer, the lowere the prices will be. An off plan investment is cheaper than purchasing a traditional because, the construction of the project has yet to begin. Major riskd of offplan investing are project may not even be built, the construction date be delayed or your expectations for the project are not met. To lowere the chances of these risks becoming reality, investors shoild select known developers with good reputation.
CAN I SELL MY INVESTMENT IN OFF-PLAN PROPERTY?
You cannot sell the investment until the property has been fully constructed. There is no establishment market in off-plan investments, which makes this a very illiquid investment.
BUYING OFF-PLAN BETTER THAN BUYING BRICKS AND MORTAR?
The benefit of purchasing bricks and mortar is "opportunity cost". The opportunity cost of an investment is how much your money would earn if it had been invested elsewhere. For brick and mortar, there is little to no opportunity cost because the project has already been completed. Generally, the opportunity cost is 5% per annum. With offplan investments incurring a high opportunity cost,an investor could instead optto invest their money in a high-interest savings plan.
A hub for landmark projects, Nakaseero and kololo boasts an excess of luxury property hotspots attracting global investors and locals other places include Ntinda,kiwatule, Kyanja, Naguru,Bukoto,Kamwokya(Kanjokya street) etcs.