{UAH} Land & housing tips I wish I'd known earlier in life.
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Land & housing tips I wish I'd known earlier in life.
1. If possible avoid the 50x100 land trap. You are better off buying a larger piece of land further on. Appreciation on such small pieces of land is low, land utilisation is limited, and if the area is characterised by the sale of such pieces at low prices then it's likely to be poorly developed in the future with low cost housing. However,Location is important not just size of the land especially if yo talking about value. Some places very small are more valuable than acres way far from the city. U have to consider other things too. School. Medical. Power water. Shopping. No sense in having a square mile not serving your purpose.
That said a 50x100 even in Kololo is not a good use of money as your uses are very small and limited. look at adverts for sale of houses, the 1st question is "what is the size of the land it is sitting on?" A tiny shabby house on a large piece of land will go faster and at a better margin (call it profit) than a mansion on a tiny 50x100. Secondly Uganda's population is rapidly growing, in no time we moved from 30million people to 40million people. Land is a scarce resource, and it will get even more expensive. You don't want to be holding just a 50x100!
In the year 2000 Nalya was a village but its now an expensive area. You have to have hindsight and vision. Take an example of neighboring Kenya. 10years ago Kiambu was coffee plantations.You have to think past current problems of roads you have today. On the other hand of you can afford a bigger plot (even if it's 100x100) closer to amenities it's a better investment than buying bu 50x100plots. Never make long term financial decisions based on your current financial situation. Dream bigger. You have to think past current problems of roads you have today
2. Weigh our your financing options carefully. Know what your full options are and what it will cost you both in principal and interest. Weigh it against your future benefits and find the best purpose for your land that maximises your return.
3. A personal house is good, but it's not as important as setting up income streams. Gift yourself last! It's better to set up rental houses 1st but as you do so do not "copy paste" what everyone else is doing. Think 10 years ahead, work with an architect that is of this mindset too so that your upgrade costs will be lower. Eg. Provision for cheaper energy sources, internet, etc. Change is inevitable and tenants are looking for the next best house. A good well thought out house will ensure better occupancy rates.
4. Space utilisation!!! Space Utilisation, space utilisation!!
When you finally build your house, keep in mind that every single centimeter squared came at a cost. Therefore it needs to be practical space!! . When you sit with an architect challenge him on the practicality of his designs. Most of our architects are too lazy to come up with anything new and will replicate what they did in another project. Visit at least two of his/her projects, visit him/her at home too. It will open your eyes.
A good design can save you up to 20-30% of your build cost. Even a small change in roof design can lead to a 5million + saving in build cost!.
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-- 1. If possible avoid the 50x100 land trap. You are better off buying a larger piece of land further on. Appreciation on such small pieces of land is low, land utilisation is limited, and if the area is characterised by the sale of such pieces at low prices then it's likely to be poorly developed in the future with low cost housing. However,Location is important not just size of the land especially if yo talking about value. Some places very small are more valuable than acres way far from the city. U have to consider other things too. School. Medical. Power water. Shopping. No sense in having a square mile not serving your purpose.
That said a 50x100 even in Kololo is not a good use of money as your uses are very small and limited. look at adverts for sale of houses, the 1st question is "what is the size of the land it is sitting on?" A tiny shabby house on a large piece of land will go faster and at a better margin (call it profit) than a mansion on a tiny 50x100. Secondly Uganda's population is rapidly growing, in no time we moved from 30million people to 40million people. Land is a scarce resource, and it will get even more expensive. You don't want to be holding just a 50x100!
In the year 2000 Nalya was a village but its now an expensive area. You have to have hindsight and vision. Take an example of neighboring Kenya. 10years ago Kiambu was coffee plantations.You have to think past current problems of roads you have today. On the other hand of you can afford a bigger plot (even if it's 100x100) closer to amenities it's a better investment than buying bu 50x100plots. Never make long term financial decisions based on your current financial situation. Dream bigger. You have to think past current problems of roads you have today
2. Weigh our your financing options carefully. Know what your full options are and what it will cost you both in principal and interest. Weigh it against your future benefits and find the best purpose for your land that maximises your return.
3. A personal house is good, but it's not as important as setting up income streams. Gift yourself last! It's better to set up rental houses 1st but as you do so do not "copy paste" what everyone else is doing. Think 10 years ahead, work with an architect that is of this mindset too so that your upgrade costs will be lower. Eg. Provision for cheaper energy sources, internet, etc. Change is inevitable and tenants are looking for the next best house. A good well thought out house will ensure better occupancy rates.
4. Space utilisation!!! Space Utilisation, space utilisation!!
When you finally build your house, keep in mind that every single centimeter squared came at a cost. Therefore it needs to be practical space!! . When you sit with an architect challenge him on the practicality of his designs. Most of our architects are too lazy to come up with anything new and will replicate what they did in another project. Visit at least two of his/her projects, visit him/her at home too. It will open your eyes.
A good design can save you up to 20-30% of your build cost. Even a small change in roof design can lead to a 5million + saving in build cost!.
"When a man is stung by a bee, he doesn't set off to destroy all beehives"
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