Haji, kizude tufananya ebintu binji; nange ebidula byagwa kono. Naye nsimye byo yogede ku peace of mind, abantu balina okukuma obwongo bwabwe mirembe. Whenever my mind is at peace; I think a lot about developmental issues and this has helped me a lot
But Houses are so valuable in countries where the economy is strong and doing well, Bakaluba I disagree with your answer how you have answered the question, Because we have seen people here in the UK selling off the houses they build in Uganda for renting business, and turn the money to kick start the mortgage payment, The truth is that owning a house in developed countries is far Better than owning a house in Uganda, Note Houses here in the UK are sold from £200.000 among the cheapest and that's a one bed room house, and trust me, you can't sell a house of one Bedroom at the above price in Uganda. Also to prove what I'm telling in detail, Go in history of Farook Sakozi's Videos he was interviewing 2 ladies one in GERMANY and another in USA Who have bought houses in those 2 countries they will tell something extra positive about that issue and I think according to your statement you have no Idea about Properties here in the UK, Otherwise you could be owning one, You want tell me you understand better than many People who invest in properties here in the UK, NO.
@jobokotk8065 People in the disapora opt to buy land in Uganda for several reasons. 1) The low barrier of entry is attractive, 10M get you a plot of land which isn't the case where they reside. 2) Speculative and high growth potential in Uganda, as is the case with most emerging markets. 3) Sentimental reasons and family links. I personally think buying land in Uganda (land banking) is a great idea, building rentals not so much so. Case in point, spending 500M UGX, which is the equivalent of £100K on a rental apartments isn't the best of business ideas. This requires you to have the case as debt leverage is non existent, mortgages are few and far between and those that exist offer ridiculously high interest rates. Over 15% in some cases which os in stark contrast to the usual under 6% in the UK. Case study: You have 500M UGX = roughly £100K. £100K can acquire one 2-3 bedroom buy to let flat worth £300K (1.5 Billion UGX) in East London. Break-down = 25% deposit for buy to let (rental) mortgage = £75K, legal fees and stamp duty, etc would amount to roughly 15K. This brings your total spend to £90K. This would rent for roughly £2200 - £2500 PCM. Take £2200 per month at worse, which amounts to £26400 annually. Now deduct 10% management fee, 10% repairs, and a further 10% for void periods and/or non payment. This leaves a balance of £18480 annually. Now deduct the mortgage payments to the bank. You paid £75K out of £300K and burrowed £225000 @ 6% fixed for 10 years. Your annual mortgage payments are £13500 a year, which is £1125/month. £18480 minus £13500 = £4980 net yield per year roughly £415/monthly. This is just over 2M/monthly. Is it worth it for you??? You could fix your interest rates for a decade naye if you opted for variable rates and the rate suddenly rose to 8% because of some unforeseen global event ( Covid/Ukraine war/Israel war/ Oil prices/ shipping lane blocked by Yemen in retaliation to Gaza), you'd be in tears. Now here is the good news (capital growth) - property prices have been rising by a minimum of 100% since 1066 when they began recording these statistics. So your £300K property would be £600K leaving you with £225K before deducting capital gains tax. In light of the above, you've to ask yourself if this is a worthy investment. Hajji obviously opted to buy land and build rental. His 7M UGX ploy was 200M UGX in a few year. Personally I do a mixture of both. Buying buy to let properties outside London is probably a better idea. Your 500M UGX - £100K can get your 4 rental properties in Liverpool with better rental yield but lower capital growth in comparison to London. This is no surprise of course because no one expects the value of a property is Masaka to rise at the same rate with its equivalent in Kampala. And finally unlike rental properties residential mortgages only require a minimum of 10% deposit, so you plan on living in the UK in medium or long term a mortgage is a better idea, as it is cheaper than renting. There are far better and highly rewarding property strategies in the UK than simply buying a turnkey property to rent. Most of them involve increasing its value through renovation and reconfiguration then refinance. This often gives you all the funds invested leaving your a 'free' house. All the above is subject to your credit rating and salary. Here goes your free consultation. 😊 You're welcome!!! All subsequent questions are for a fee. 😂😂😂
There a few Ugandans I can listen to this long, Mr. Bakaluba you are one of them. I couldnt travel to Munich from my city. A gem of inspiration and wisdom ! Era ddala alina yayongerwako : ) Best regards !
