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12 REASONS WHY YOU SHOULD INVEST IN REAL ESTATE IN UGANDA

There are many people out there telling you not to invest in real estate because as they say it’s a lazy man’s business. Am here to give you a different opinion about the same.

1. If you are to retire in Uganda, you need a real estate portfolio. At least 25% of your portfolio must be in real estate. This is because real estate doesn’t depreciate, and it can act as a cushion whenever the other streams of income begin staggering.

2. In Uganda to retire comfortably, you should have an asset portfolio that is 150 times (150x) your monthly expenses. (For example, If your monthly expenses are UGX 5M Shillings, your portfolio should be UGX 750M)

3. When you invest in Government paper (Treasury bonds, Government bonds, etc.) you are betting on the stability of the Ugandan economy. As we all know economies are never stable.
4. Uganda has a ‘snooping’ problem. If you receive or have ‘substantial’ money in your bank account, the Financial Intelligence Authority (FIA), Bank of Uganda, Banks, etc., will always peep into your account and sometimes ask prying questions. Real estate is a good place to store money.

5. Financial analysis shows that Rental units (mizigos) outperform Treasury bonds. A tip for you; For the construction of rental units (mizigos), look for cheap land, Kabaka’s land is a good option. Or buy rental units in places that are developing with middle-income populations like Naalya, Kira, Namugongo or elsewhere accommodation is in high demand.

6. Real estate income does not depreciate the asset. Instead, the asset appreciates with time. Unlike other assets like trucks, properties appreciate in value.

7. Real estate investments help one use up ‘excess’ or ‘idle’ cash which might have otherwise been wasted on consumption. Many times, money is wasted because it's present, however, if injected into real estate you are saving them money and at the same time multiplying it.
8. To sustain a middle-income lifestyle in the Kampala metropolitan region, your asset portfolio should be at least Ugx.1bn.

9. 40% of global GDP is in real estate. Are you opposing those people, or do you think they are not smart?

10. The talk that instead of building a home go and start a business does not work for everyone. Business is tough. Not everyone can start a business. But everyone needs a home.

11. The illusion of Uganda – because of our low wage structure, everyone aspires to go and start a business to supplement wages. Business is tough, many people lose money in business.

12. When you live a middle-class lifestyle on a pay cheque, you’re in trouble. You need to build a portfolio.

Extracted from a Speech by Livingstone Mukasa