Buying off plan condominium apartments tips in Uganda 

If you are thinking about buying a property off-plan, it could be beneficial to consider the below tips to avoid the potential pitfalls of buying a house off-plan in Uganda.

• Research the developer online and read forums to see what people are saying.
• Visit the developer’s other sites to see the quality of their work.
• Negotiate with the developers. At the end of their financial year, or when there are only a few properties left to be sold you may be able to get a ‘buying off-plan discount.’

Questions to ask when buying property off-plan

1. How much deposit do you require?
2. Will my home be similar to the one in the brochure?
3. How long is the build time and when can I move in?
4. Are there any incentives or buying off-plan discounts?
5. Mortgage lenders for off-plan buildings

Some banks can be more cautious about lending to borrowers for off-plan mortgages in the Uganda as new build properties including new build flats, are notoriously harder to resell.
For a lender, this creates a risk. If you default on your mortgage payments, they may have to repossess and resell to make their money back for the loan. If the property doesn’t sell or sells for a lot less than the loan, the lender loses money.
Because of this, you may find that some banks have strict affordability criteria which can reduce the options available to you.

How will the property type affect a mortgage for an off-plan house?

Banks can also be wary when it comes to loaning money for mortgages on non-standard construction builds because this too, can affect the property’s saleability.
This is because certain property types can be expensive to maintain or repair as specialist craftsmanship and materials may be needed. This can often put future buyers off.
Examples of buildings that can cause issues with some lenders include:

• Flats on a 5th floor or higher
• Thatched roof houses
• Homes made with corrugated iron

For some homeowners, keeping up with their mortgage repayments as well as the maintenance of a building can prove too much, and in some cases, they fall into arrears.

This poses a risk to banks they may then have to repossess, and essentially inherit the cost to repair and then sell the property.
Fortunately, there are lenders that are more likely to consider a wide range of property types.

Getting a mortgage for an off-plan buy to let

Because buying off plan often comes with developer discounts, they can be a great opportunity for investors looking to buy to let.
New build and off plan buy-to-let mortgages are likely to require a specialist lender since buying new builds and off-plan properties come with have higher associated risks.

When you buy off plan you’re investing in a vision rather than a completed property and some lenders will have an aversion to this due to the possibility of a property decreasing in value before it’s even been built and potential delays and complications during the build itself.
Due to the higher perceived risk, lenders will generally require a higher deposit for off-plan buy-to-let mortgages.

Speak to an expert about buying off plan today

If you have questions about buying off plan or any other developer or just want to speak to an expert for the right advice, call today on +256709220000 or send us an email: info@spectrumproperties.co.ug

Then sit back and let us do all the hard work in finding the best options with the right expertise for your circumstances.