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As the operator of the largest database of properties in Uganda, I often receive direct messages from individuals seeking advice on how best to make installment payments for their dream house or land that they have identified on the Real Estate Database (RED).

 

Considering their needs and specifications, I frequently guide such buyers to RED agents who can negotiate favorable installment terms with developers and landlords. Alternatively, I suggest exploring mortgage options by connecting them with an agent who can provide detailed information on the best available mortgage choices in the market.

However, many of these individuals have installment requirements that do not align with the existing options offered by developers or banks. Additionally, a significant number lack a consistent income, the required credit score, or the necessary down payment to qualify for a mortgage. Some may have even attempted and failed the mortgage assessment interview at their banks. When such individuals are confronted with the suggestion of a mortgage, they often respond with a resolute "I don't need a mortgage."

Recently, I received a direct message from an individual seeking advice on her home ownership needs. She was looking to purchase an apartment with a cash budget of 200 million and intends to pay 5 million per month in installments for the remaining balance. She desires a 3-bedroom or 4-bedroom apartment in a central area, presumably referring to the central region. She asked for guidance on acquiring an apartment that meets her specifications (below is a reducted screenshot of the same).

 

You will quickly notice that she omitted the total budget or the total amount she is willing to pay for the apartment. In such cases, I have learned from experience that the total amount is usually more than twice the proposed down payment (200M X 2 = 400M+). This is often the reason why such buyers resist opting for a mortgage, as many financers are unwilling to accept a down payment of less than 50% without additional security or an income guarantee.

 

Upon recommending a mortgage, she expressed reluctance, stating, "I don't want a mortgage, but I am open to the possibility of direct installment payments." Unfortunately, many landlords and developers offering direct installment payments are either unable or uninterested in providing terms that match her requirements.

 

Most landlords and developers prefer cash transactions. If they do offer installment plans, they are often for marketing or fundraising purposes during the construction phase (commonly referred to as buying off-plan), with the expectation of settling the balance within a few months or before project completion.

Given the individual's substantial cash amount (200 million), which could cover an upfront apartment purchase in prime locations outside Kampala, I suggested considering attractive options within Wakiso's prime areas that align with her cash budget and specifications. I provided her with a link to listings in the 200 million range, and she is currently reviewing and deciding on which options to consider.

The key takeaway from such scenarios is the importance of flexibility and creativity in navigating the real estate landscape. While mortgages and developer installment plans work for many, they might not be suitable for everyone. Exploring multiple avenues, considering alternative property options, and maintaining an open mind can be instrumental in finding a housing solution that aligns with individual circumstances and aspirations.

In the end, the journey to homeownership is a highly personalized one, and there is no one-size-fits-all solution. For those who echo the sentiment of "I don't want a mortgage," the quest for the perfect home might involve paths that cater to their unique needs and financial capacities based on what they can afford at the moment.