Who in their right mind would spend over a billion Ugandan shillings on land just to hold? Someone called me saying, “I have a building in Hoima City
I told him I wasn’t interested and added that I don’t have that kind of money to tie up in a building where even the best tenant can’t pay UGX 5 million net monthly. He then asked if I knew anyone who might need such a building, and I told him no.
“Only folks who deal in real estate, buying and selling, should be approached, or those who don’t understand the value of the money they have. Someone like me, who must hustle to earn, can’t invest that kind of money in a building just to hold and wait for a monthly Ugx 5m. I have better ideas to put that kind of money.”
He just hung up on me!
Seriously, Ugandans, if you have money, stop “tying” it in real estate. Ok, you may spend Ugx.200m to 400m in your ego mansion to feel good and fulfil cultural expectations of an old man to have a home, but do not tie money left, right and centre in land or building just to earn Ugx. 5m! It’s just being selfish with so many young people unemployed.
A small business, offers employment opportunities, and makes money move. Go to innovation village or visit any market and invest in those retailers for food stuffs… you will make impact. Would you spend Ugx. 1bn on a building to just earn you Ugx. 5million net monthly in Uganda?
Afterthought 1: If you have a business case, you are free to invest in an office for which you have assured tenants. Calculate wisely.
