Currently, Rwanda is a must-destiny for an investor in Africa. Rwanda is doing more than enough to ensure that all investors feel at ease to invest in the country. In relation to real estate, e.g. the country has initiated a project to ensure that Land titles become ‘paperless’ the land authorities in Rwanda have commenced the process to digitize the procedure for property registration. This means in the near future paper land titles may be history because the country plans that in case the project is completed all real estate owners or land and property owners will use electronic land titles to access different services such as mortgage loans from the financial institutes loans.

Hence, real estate projects will be more smooth because anyone will have access to his or her title at any time. For instance, a real estate investor owning property in Rwanda will have the option to transfer his or her property using electronic platform say to make officials fees payment and fill in the forms as required. After executing the required documentation, the documentation will be forwarded electronically to the land authority offices to be kept in the land register. At the end of the electronic procedure the transferor will be notified electronically and have access to the electronic land title. This also points out why real estate investment in Rwanda is the wises and safest decision that and investor can make.

WHO AND HOW CAN ONE INVEST IN REAL ESTATE IN RWANDA?

In Rwanda, anyone can invest in real estate. This can be done in several ways. Buying real estate, fixing up, and selling properties. (Or the common practice of house flipping) – flipping is a very known and legal type of real estate strategy practiced in Rwanda and in many other jurisdictions. Under this strategy the investor purchases a property not to use it, but with the sole intention of selling it out to make profits. Literally, you buy property at low price and then sell it at high price.

The other real estate investment strategies possible and applied by investors in Rwanda are but not limited to:

Purchasing prime properties and thereafter rent the properties to short and long term clients/tenants that keep on depositing money on the investors account depending on the nature of the tenant agreement that was executed by the investor and the tenant;

As it will have discussed below that Rwanda has embarked on secondary cities. Investors have and can buy and rent out vacation homes in these secondary cities, this can also be on short term rentals;

Other investors can and have created real estate investment trusts in Rwanda for their family or loved ones. This is another way to maintain family wealth for the next generation without facing unnecessary inflation as it is with other forms of investment;

Real estate requires reasonable capital, and some investors have come up with crowdfunding real estate deals and developments and this has done them wonders because most of them have become financially secure because of teaming up to for crowdfunding real estate deals and developments.  

WHY INVEST IN REAL ESTATE IN RWANDA?

In case you are still wondering whether or not to invest in real estate in Rwanda, please make up your mind and decide to proceed with investing in real estate in Rwanda, this is because considering the population and future targets of Rwanda, the real estate sector is a crucial sector and a potential driver of future economic growth. It’s especially has the most merits/advantages in case you critically compare it with other investment opportunities.

The other fact is that when you purchase real estate property in Rwanda, which is a sector that is crucial and a potential driver of future economic growth. The purchased property value will rise every other day, this makes the investor build up what is called equity, that can be cash in on later times. This points out that the investor can sell the property at his or her wish for any purpose like retirement infusion, or tapping the equity in cash-out refinance, or leveraging it to purchase more property to boast his or investments in Rwanda or across the region or expand to the world.   

Rwanda’s real estate sector will keep on surprising everyone and making the real estate investors in Rwanda more financially secure, for instance it is not known by everyone, but now on record that in the recent past the real estate sector contributed approximately more than 666 million dollars (647 Billion Rwandan Francs) to the country’s GDP. Every day the sector grows, this is because of factors like: sustained expansion in private constructions; and public works. Hence, are you considering to put your savings into investments like real estate? Rwanda real estate is the answer considering the surrounding benefit of attracting millions of dollars for investors and the country’s GDP.

The above point proves that except for other forms of investments, real estate more so if it is done in stable economies like in Rwanda whose GDP is also supported by the real estate sector as highlighted therein above, this offers hedge/protection against unrealistic inflation. This is based on the rationale that in most cases as prices rise (and the value of the currency like the dollars’ decreases), even the cash flow got from the real estate. When the housing prices increase in the market. E.g. rents automatically rise, therefore, this shows that an investor in real estate in Rwanda maintains pace with inflation, and this in most cases favors the investors if we look at it with economic lens.

Real-estate is the real deal for any investor in Rwanda, this is based on the rationale that the efforts of the government of Rwanda have been taken to another level, say the government has introduced land master plans that entail the vision and guidelines for the stakeholders that are directly or indirectly involved in land use in Rwanda. Hence, there are specific plans in relation to land use and in case one relies on the master plan he or she cannot have unreasonable frustrations as it is in other jurisdictions without master plans. E.g. the implementation of the Kigali City Master plan that entails a broad vision and guidelines for the entire city, serving as the basis for more specific planning at the District and the Central Business District. It presents the most advanced sustainability in land use, infrastructure, environment, society, and economy.

Real estate in Rwanda is also an opportunity for investors that have already invested in other things like stocks, gold and other securities. This will help the investor diversify his or her investments in a way that real estate in Rwanda offers the possibility for an investor to diversify investments and directly or indirectly ending up mitigating risks of having only one for of investment. An investor the has spread his or funds in a number of different ventures, can easily and effectively dodge losses compared to an investor with only one vehicle of investment.

For those that have already visited Rwanda, they will acknowledge that Kigali the capital city of Rwanda already reflects high level growth and economic development by the Government and some  investors that were vigilant and invested in Rwanda as soon as after 1994, but this should not worry those haven’t yet placed their invest in Rwanda because the Government of  Rwanda has big ambitions in relation to growth and development of the entire country, e.g. the government has  also earmarked six secondary cities ((Rusizi, Rubavu, Musanze, Huye, Muhanga, Nyagatare) to foster their growth and economic development. The secondary cities present enormous opportunities especially; in real estate and infrastructure development, manufacturing, agro-processing, and among others.

As the government embarks these other cities, this is also a great opportunity for any investor who intends to invest in fairly priced real estate properties. This is accompanied with benefits for the markets that will develop in these cities too. The investors can invest in properties like much-needed housing in the embarked cities for the stability for the people in these communities, this is will be a win for the investors as well as the government because there will be chances of increases city tax revenues.

The best part to note as an investor is that as these embarked cities flourish, the more the investor’s assets/properties will appreciate. Hence, this is what is termed as a self-feed circle that will help real estate investors in Rwanda build more wealth, long term financial security and having a hand in the development of the community.

The country targets that everyone in Rwanda must have simplified access to housing mortgages so as to improve the standards of living in the country. This has forced the government to boast all ways of developing local construction materials and housing typologies, this has eased the access to construction materials for all investors in real estate, and hence creating room for development    affordable and decent housing countrywide.

Therefore, if one becomes a real estate investor in Rwanda he or she is assured to receive consistent/regular incomes and cash flows.  For example, the investors that will participate in the development of the affordable and decent housing will face the advantage of consistent, reliable income- this is because the developed properties will definitely be rented say as residential and others for commercial purposes. If the investor owns other business, this will mean additional cash to use for towards developing more projects or living a definite financial secured life. This is also way out for investors that really want to retire early, because this will create additional social security or other funds that the retired investor may already have in his or life.

Apparently, Rwanda as a country needs approximately over 5.5M (150,000 dwelling units to be constructed annually) to cater for over 22M by the year 2050. This is a clear example that real-estate sector in Rwanda is the “gold” opportunity for an investor that wants to tap sectors that will secure his/her investment capital, and this comes with more chances of attracting abnormal profits.

Additionally, in case one accepts and joins the real estate investors in Rwanda, there will be a benefit to qualify for more valuable tax merits. Real estate investors in Rwanda have numerous tax benefits. E,g, their costs can become deductible business expenditures. Investors also use this as an advantage in line of depreciation recapture- which is another taxation benefit that can be used to save money as an investor on his or her annual liabilities.

Last but not least, many investors spend a lot of money on vacation homes, but if an investor invests in real estate in Rwanda. This creates an under-looked advantage of investing in rental property in Rwanda, yourself or your family can use the property in the near future as a vacation property or acquire it as primary residence in “the land of thousand hills” Rwanda.

Considering the above and if it is done correctly, Rwanda real estate is the best investment opportunity to be tapped for anyone having funds and looking for proper investment opportunities that can enable you achieve passive income and the longest-term wealth.