Buying in Off Plan Property in Kampala Uganda today
Buying in a property before it’s been built, known as off-plan, has become more attractive to buyers throughout the world and. It’s seen as a way to purchase a property at a discounted price ahead of a price rise on completion, essentially giving buyers instant equity in the property once completed.
There are many pros and cons for investing in off-plan property, but in order to meet the current, and ever increasing demand, there is no doubt a great opportunity for buyers to cash in on this undersupplied market in Uganda.
It’s not quite the same as purchasing a house, or completed property, but the process is not an overly complex one. Buyers generally are required to pay a deposit in order to exchange contracts (typically 20-50%), with the balance of the funds due on completion.
The other tools that are making it much easier for investors and buyers to make decisions to invest in off-plan property is the computer generated images (CGI’s), many of which now can be difficult to tell if they are in fact CGI’s and not the real thing.
MORE SAVINGS EQUAL HIGHER RETURNS
One of the big advantages is that you are securing the property at today’s market value (possibly less), giving time for a significant increase in the value by the time the development is completed. It is not uncommon for some investors to have made up to 100% growth on the value of their unit between exchange of contracts and completion.
Of course, there are no guarantees, so it is important to be investing in areas with strong demand, consistent growth potential, and also invest with developers who have financing in place and are not using the investor’s funds to complete the build.
WHAT ARE THE BEST OFF-PLAN LOCATIONS?
There is a lot of media hype about Eastern Kampala at the minute, and this is not to be ignored. The predictions recently suggest that house prices in the Eastern Kampala will significantly outperform other locations around Kampala over the next five years, putting Naalya and Kololo the top of the ‘hot spot’ list year after year.
GETTING A MORTGAGE FOR AN OFF PLAN PROPERTY
Many buyers think it is extremely complex when getting a mortgage on an off-plan property. This is a myth! It is very possible to take out a mortgage on an off-plan property, although the criteria is different from bank to bank
Remember, when buying off-plan, always conduct full research into the area, local market, for both rental demand and resale demand. Although it can seem like a daunting process, if you conduct thorough due diligence, the rewards can far outweigh the risks, and by working with an experienced sales agency you should have a very smooth process.
Demand V Supply. When the demand is high and the supply is low, and you hold onto the property…you will always win. And even if prices don’t rise as much as that…you’re still renting it out and generating an income!
GET IN TOUCH
You are about to complete the biggest transaction of your life. Something that must be done right and with care. Let us help you make sure that is what happens.
If you would like to talk with us directly you can call us on +256709220000 or email us info@spectrumproperties.co.ug. If this is your first time landing on Property Investments I encourage you to visit our homepage to read more about us and to see what we have on offer.
