Cost Breakdown: How Much Does It Really Cost to Buy Property in Uganda?

Cost Breakdown: How Much Does It Really Cost to Buy Property in Uganda?

Buying a Property in Uganda involves more than just the purchase price. Here’s a cost breakdown to help you budget effectively. Not all of these will always apply and the list will change based on your due diligence and type of transaction.

1. Purchase Price (Market Value): The primary cost is the market value of the house, which varies based on location, size, and condition.

2. Stamp Duty (Rate): Stamp duty is typically 1% of the property’s market value, paid during the transfer of ownership.

3. Legal Fees: Legal fees, ranging from 1% to 2% of the property’s value, cover the cost of hiring a lawyer for due diligence and contract review.

4. Property Valuation Fees (Valuation Requirement): A licensed valuer assesses the property’s value, with fees typically around 0.5% of the property’s value.

5. Real Estate Agent Fees (Commission): If using a real estate agent, expect to pay a commission, usually around 5% of the purchase price.

6. Survey Fees (Land Survey): If a survey is required, survey fees will apply, ensuring the property's boundaries are accurately documented.

7. Inspection Fees (Property Condition): Inspection fees cover the cost of assessing the property’s condition, crucial for identifying any structural issues or necessary repairs.

8. Utilities Connection Fees (Services): Fees for connecting utilities such as water, electricity, and internet are additional costs to consider.

9. Mortgage Costs (Interest and Fees): If financing the purchase with a mortgage, account for interest payments and any associated bank fees.

10. Miscellaneous Costs (Contingency Fund): Set aside a contingency fund for any unexpected costs that may arise during the transaction.

By understanding and accounting for all these costs, you can create a realistic budget and avoid surprises when buying a house in Uganda.

For more insights and updates on real estate, follow Threalty Services Limited on LinkedIn.