Want to buy a house?

However, he also states that some real estate company motives and objectives matter. There are some companies which want quick cash and there are others which target numbers but not margins.

“Some work on a principle of availability, affordability, and dependability while others aim at how much they will take home,” Mr Kamugisha says. The market also dictates the price to be charged on a property from a real estate developer although some times the market is manipulated by some developers when they get uninformed buyers.

Home types
Every individual has what they prefer to be their dream house. However, talking to real estate developers and financiers will help give you direction on what could be best for you also taking into account the amount of money you have. Mr Kamugisha says there are different types of houses or homes in the country. However, of all the types, only a few can be financed by bankers or the real estate developers.

Unclosed shells
These account for only 10 per cent in Uganda because they are merely accommodative, but suitable enough for habitability. They are roofed, but without door and window fittings and they are not fully finished.

Closed shells
They account for 20 per cent of the houses in the country. They are shells but closed. They are not plastered and lack most basic necessities of a house.
Basic shelters
This accounts for 25 per cent. They are plastered, have water and electricity but lack toilets. “A basic shelter user will have latrines because that is what it offers. These are also referred to as village homes,” Mr Kamugisha says.

Standard shelter
They account for 30 per cent. These houses are plastered, painted and have external landscaping. They also have all utilities including toilets.

Luxury shelter
This accounts for 10 per cent. The name “luxury” explains what is found in the homes. “They could also have tiles, and many other utilities that one could do without,” Mr Kamugisha explains.

Super luxury
These take up only five per cent because most of the utilities in the house are unnecessary but some people will go for them.

Loan specifications
Mr Kamugisha explains that when one wants a mortgage for a house, there are four ways of getting property when you don’t have full amounts.
* An individual who prefers to build their own home should seek short term commercial bank salary loans if they are employed.
* The real estate developer can allow you to make a small deposit on a property, and then you take a flexible schedule of payment for say a year. However, the security here is the land title. You can’t get it unless you have completed payment. It is said that such a method is the best because as you service the mortgage, you are staying in the house hence avoiding double expenditure by paying rent.
* The third method is where the real estate developer gets a deposit from you (the intending home owner), and if he wants an outright purchase, then he takes you to a financial institution who will pay the dealer directly and you then deal with the bank. The Housing Finance Bank mortgage manual states that such an arrangement can be done for 20 years with interest, which interest varies from one banker to another.
* The most commonly practiced method is to completely acquire land, keep on developing it gradually even if it takes you 10 years until its completion. To buy a house, Mr Bemba says there are basic considerations to look out for. This includes the type of the roof, flooring and fencing.
Other conditions people observe are whether the house is in the executive parts of Kampala or in the far reaching areas of the city, but Mr Kamugisha says that of recent, the houses being searched for are not in the middle of town because of spaces therein.