Know the right time of the year to buy land

Buying land is tricky right from doing background checks, saving money for it, among other things. But when to buy is another issue that has its dynamics. You need to know the right time to buy if you would like to get good deals.
Ssempala Walusimbi, a property broker in Rubaga Division, says: “The best time of the year to buy land is November, December, January, and February.”

Fewer people buying
Ssempala says November through January are slow months in the real estate business as everyone is thinking about the holiday season and planning for the first term of school. Fewer people are buying so land is at cut price.

Desperate sellers
He adds that by the time property gets to December and January, sellers are desperate and are willing to sell at low prices. He says some sellers are under pressure of either school fees for the coming term or looking for money for the festive season.
Peter Ndumu, a banker says: “From a financial perspective, banks usually start lending at the start of November through January because they expect to earn interest before the end of the year. Therefore, there is money in the economy and people can buy during that time.”
He, however, adds that: “In Uganda, we have an open market and people sell for different reasons. They are those selling but are not under pressure so they will hold out for a good price. Then, they are those with disposable income and are ready to buy at any price.”

Property testing period
Property broker Ssempala, says during these three months, property is at its worst. It is during the rainy season that a property is tested if it is of good value or not. “Here one gets to know whether the property is prone to flooding, if the drainage channels are well planned and other risks. However, if one buys during the dry season when everything about the land is glittering, regrets may come in the future.”

Stale properties
“The biggest knock to a property is that once it stays on the market for over 60 days it becomes ‘stale fish’,” Ssempala says, adding: “ ‘Stale fish’ properties lose their emotional connection with potential buyers as the buyers start wondering what is wrong with the property. When buyers no longer feel emotionally connected, they stop making offers and obviously the price goes down.”
Patrick Mukuuye, a property manager at Seema Properties, agrees that there are times of the year when real estate business is slow and buyers get offers at lower prices than other months.”

Festive offers
Moses Kigozi, a property agent in Kyanja, however, notes that: “There is no such a thing a good time. As long as you have the need, time and money you can get a good property at any time in the year. However, for one buying from real estate companies, festive seasons of Easter and Christmas are better because they have seasonal discounts.”
Quresh Shehadi, of Comfort Homes property developers, a company that trades in land, shares: “When we have a project to execute no matter what time of the year, we buy at the prevailing market prices because we have little or no choice. But when not under pressure, we normally hold on until the festive season when the prices are low.”
He adds that during this period, people are willing to sell and plenty of people have money.

The high peak months
Property manager Mukuuye, a property manager says there are many reasons why the market moves this way. Buyers usually ramp up their efforts to find land in March and April and the search activity is also high in June and July.
He says sellers usually prefer to wait until peak season to sell because they can expect to get higher price more than the annual average.

Why some months are slow
Quresh says the first and second quarter of the year are quiet because people are still planning on what to do for the year and there are less properties on the market.
Paul Tenywa, a land owner, who bought land in the middle of the year, says: “Land appreciates so fast so when you feel the price is fair just buy because tomorrow you will find when the price has increased. For my case, I had cash at hand and luckily there was someone selling. Comparing to the market price I felt it was cheap considering the fact that land appreciates so fast. I needed to invest the money before I spent it on other things.”

How to hold out for a better price as a seller

Yes! It is a peak season, there are plenty of buyers but you, as a seller, where do you stand? If not careful, buyers may take you for a ride and offer you a price way below than what you deserve. So, how do you get the best value for your property?
For starters, do a market research on what is the prevailing market price and also know the exact size of your land. In some cases sellers don’t know the exact size of what they are selling a reason they are cheated.
Above all, add value to your property so that whoever wants to buy has a reason to offer you the asking price. This can be inform of opening access roads, access to utilities.

Property discount rates for the season
Gayaza Buwambo estate
Season offer Shs9.9m Normal price Shs 11m
Katende Maya Estate - Masaka Road
Season offer Shs9.9m Normal price Shs11m
Maya Estate Masaka Road
Season offer Shs 6.2 m Normal price Shs18m -
Namawojoro estate - Jinja road
Season offer Shs 8m Normal Shs10m
Kakiri gobero - Hoima Road
Season offer Shs4m Normal price Shs5m
Nsagu Estate - Entebbe Road
Season offer Shs20m - Normal Shs25m
NB: The above rates are from two real estate companies

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