Buying and selling land is one of the most profitable business ventures you can engage in. It is never too early to start and you can never have too little money to start. In a recent conversation with one of our clients, Ukrainian billionaire, Mr. Machuka Volodymyr, a majority owner of Coke Engineering with several real estate and mining investments in Africa and Europe (you catch the drift right?, he is rich!), this notion was further acclaimed. In his own words he said, “It is known worldwide that real estate is one of the surest and fastest ways to become wealthy.”
Uganda is an even better place to consider investing in land and the real estate business. Article 237 of Our Constitution, The Constitution of the Republic of Uganda of 1995, as amended, provides that Land in Uganda belongs to the citizens of Uganda and shall vest in them in accordance with the land tenure systems provided in this Constitution.
This is a sharp contrast from the Land Act of Tanzania that provides that all land belongs to the public but is vested in the president as trustee for and on behalf of all the citizens of Tanzania. The people get rights of occupancy and leases over the land and failure to comply with the terms and conditions may result in withdrawal. Indeed the President, Dr. John Magufuli last year in August, took away land/reclaimed land that he considers is being unutilized/idle, cancelled their titles and redistributed it elsewhere. Scary, isn’t it?.
Back to our topic for the week, in Uganda, the land belongs to the people, therefore you can own it on your own terms and conditions and pass it on to your grandchildren. Land is a great asset that appreciates on its own and there is no provision for its depreciation.
However before you go running for the “hot deals” that will wipe out your savings and leave you paying debts, kindly consider the few things discussed here.