LONG-DISTANCE REAL ESTATE INVESTING, CAN IT WORK?
- benardbaros
- May 20, 2024
- 3 min read
Many will swear they can never be in a long-distance relationship. Whether it is issues of trust, or a constant need to be in the close vicinity of our beloved, something causes us humans to close off the possibility of doing anything from afar. Those brave souls who have ventured into the intricate dynamics of managing affairs from abroad have often lived to testify about the difficulties involved. This puzzle is not limited to love affairs. It also manifests in the real estate investment world.
We have all heard the stories. A person leaves the country, goes to a foreign land, works hard, foregoes everything to save money, and sends it back home to a trusted relative or friend to help with investments. On many occasions, this strategy has ended in premium tears, broken relationships, and for some, a never-healing hatred for anything that reminds them of their home country. This begs the question, can one invest in Uganda’s real estate industry when they are based abroad?
The simple answer is yes, and here is how one can go about it.
The first step is to get familiar with the country's current state. Knowledge is power. Don’t neglect the value of being informed about new developments that may affect your investments. This knowledge can be acquired in a number of ways.
Checking online.
reading news posts.
checking government websites.
contacting residents.
visiting physically.
Having a pulse on the local industry will enable you to sift through potential opportunities with confidence. At Baros Group we publish valuable content about Uganda’s real estate industry to keep you informed.
The next step would be to establish contacts and relationships with individuals or organizations in the real estate field. That includes property brokers, law firms, real estate agents, property managers, and other relevant professionals. Finding your people may take time. I recommend you don’t rush through this process because dealing with the wrong person can easily leave you cursing whoever gave you the idea of investing in real estate. A good way to network in this area is to start with professional associations like;
The Association of Real Estate Agents Uganda (AREA Uganda)
The Institution of Surveyors of Uganda (ISU)
Uganda Law Society (ULS).
Engagement with these professionals will enable you to identify individuals aligned with your values and goals. These will be an excellent source of advice on how you can safely navigate the investment landscape in Uganda.
At this point, you will be ready to start looking at possible investment opportunities in the market. Your team of experts on the ground will be a good source of leads as they usually get information on market developments. Be sure to review and cross-check each opportunity with other members. Leverage the different perspectives and skills to avoid missing out on important details that could ruin your investment. The importance of due diligence before you go ahead with any investment cannot be stressed enough. Depending on your preferred mode of investment, be it buying finished buildings, building on vacant plots, joint ventures with local developers, or real estate investment groups, you can select which of the professionals on your team will be needed to look after your interests in the deal. Give your team clear instructions on procedures to ensure consistency in their operations. Rules like having written contracts for any deal that you go into will enable you to enforce agreements with partners.
After you have made the investments, the subsequent phase will be managing the assets and getting your profits remitted to you. Again working with professionals will come in handy to avoid being ripped off. A property manager will look after your property and handle the day-to-day chores, ensuring that maximum benefit is realized out of the property. Your lawyer, accountants, and other finance experts will handle the process of dealing with the money when it is collected.
With these simple steps, one does not have to worry about long-distance real estate investing. Your assets can still be safe even when you are not physically present in the country. Distance should therefore not be a reason you miss out on lucrative real estate investment opportunities in Uganda. To learn more about investing in Uganda’s Real Estate industry, visit https://www.barosgroupltd.com/
About the author;
Benard Sonko is a real estate investment manager and founder of Baros Group Limited. For comments and inquiries, you can reach him on +256742140251 or info@barosgroupltd.com
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