Do you plan to buy a Residential Rental property in Rwanda to boost your investment portfolio? Honestly, investment properties can be very rewarding if you make an informed decision or the right choice. Aside from the high profits, a first-time investor can find real estate to be a daunting venture.
Real estate is definitely a tough venture; hence, it is of great importance that you carry out detailed research before you dive into it.
Before you invest in a residential rental property, here are 6 top features you should look out for.
The Neighborhood
Importantly, the neighborhood you choose will determine the class of tenants you will attract, as well as your vacancy rate. You can’t charge the same rent for both Nyarutarama and Banyahe, a popular high-risk zone in Kigali. The difference is clear.
Read also this blog post also to discover the best neighborhoods in Kigali
Property Taxes
Property taxes vary widely across different areas into three essential categories Immovable Property Tax (IPT), Rental Income Tax (RIT), and Value Added Tax (VAT). You need to be aware of how much you will be losing in the name of taxes. Property taxes are not always a bad thing especially in a great neighborhood that attracts long-term tenants.
Social Amenities
Are there social amenities in the neighborhood? Make out time to tour the neighborhood and check out the parks, restaurants, gyms, schools, transportation links, and all the other fascinating spots that will attract tenants.
Read also things to consider while buying a house in Rwanda
Average Rent in Location
In addition, you need to find out what the average rent is in that area. You should also research the area very well in order to gauge where it might be headed in the next four to six years. As a matter of fact, if you can afford the area now but taxes but the taxes have the tendency to increase in coming years, an affordable residential property today could mean bankruptcy later.
Also, read Rwanda real estate current market
Employment Opportunities
Areas with increasing employment opportunities attract more tenants. If you see an announcement about a major company moving to the area, you can be sure that workers in search of a place will flock there. This may cause housing prices to go up or depending on the type of business involved. You can assume that if you would like that company in your backyard, your renters will be as well.
Future Development of the area
The municipal planning of land management or master plan will no doubt have the necessary information on developments or plans that have already been zoned into your neighborhood. If there is a lot of construction going on, it is probably a good growth area. In addition, be on the lookout for new developments that could possibly hurt the price of properties.
Read more about Kigali city zoning residential regulations
Fact is, real estate has produced several wealthy people in Rwanda. Hence, it can be considered a highly profitable investment. However, experts noted that it is worthwhile to research well before you dive into it. These points will guide you to choose the most appropriate residential rental property to your advantage.
eMall Property offers the best real estate deals and helps you to know more about the best deals in residential rental property in Kigali in all aspects, therefore, if you want to buy a house or plot we recommend you to visit our site www.emallproperty.com, email us [email protected] or call/WhatsApp us +250788385831 and we will be glad to satisfy your needs
