Buying and reselling houses a major investment

LILLIAN NAKAYIMA explores the trend of investing in the housing sector With Kigali’s development pace at a sprint, in order to survive the day to day expenses, a high percentage of residents have taken to real estate. Speaking of business, most think of day to day profits, the likes of retail shops, commercial buildings and such. Suddenly, all the usual businesses have lost to investing in real estate so as to get better pay at the end of the day. Many have resorted to buying houses around Kigali, not because they really need them, but because of the huge amounts of money they earn out of them in the end. “With Kigali, a piece of land or a house is the best investment one can ever make,” says Bernard Bahizi. Like others, he bought a house at Rwf 3m in Gisozi, but hopes to earn more than Rwf 10 million when he sells it. In most cases, when Kigali city council takes over places for development, the residents are handsomely paid according to the property they have at hand. “When I bought this land, I only paid Rwf 500, 000, constructed a house worth Rwf 2 m, but I am going to be paid Rwf 30m instead,” say Gregory Vunangabo, a Gisozi resident. Like many parts, Gisozi is one area that is in the development plan for vision 2020, many middle class people have taken the opportunity of buying houses that they will resell to the city council. “Though it is not a business that pays immediately, anytime you get paid it will be lifetime wealth,” says Javier Nsengiyumva. Like many, he has gone as far as getting bank loans just to seize the opportunity. Meanwhile, those with houses in areas being developed are also renovating them and adding all possible items just to make sure they are well paid when the time comes. Houses are being painted, windows renovated all in the name of adding value with the hope of earning more money. “I’ve just constructed that small house in front of the main house and I estimate it to be worth Rwf 500,000 at least.” says Vunangabo. He adds that many people have been approaching him to negotiate at least buying a simple plot of his land so that they can as well have a share on the government money. “What should I say? We often get over crowded with people looking for plots and houses to resell,” says Amiable Nkurunziza, a local council member. He terms this as the best business today. “People will end up quitting other businesses just to bank on houses to resell because it’s far earning if we are to compare,” he adds. As many scramble for the opportunity, they should also try to learn more on the pros and cons of real estate in order to make the most of it. Hopefully, this will lead to a vibrant real estate business culture. Ends