By Ntende John I have seen some comments accusing me of inflating the future value of some investments I have made in treasury bonds and other assets. I am often surprised by these comments but on reflection I realize that not everyone has studied or understands these principles properly. So in this post I will try and explain the mathematics behind the numbers.Let’s suppose you invest a lumpsum of...
By John NtendeIt is entirely possible to build a modest two-bedroom house in Uganda within five years using the following approach. Why suffer in rentals when you can be a landlord?Year 1Save ushs 10,000 daily. At the end of the year you will have ushs 3.65 million. Use this money to buy a plot of land in Zirobwe or along the main highways within a radius of 40km from Kampala.Year 2Save ushs 20,000 per...
By John NtendeWe started building our first home in 2014 somewhere on the outskirts of Gayaza. We built the house in typical Ugandan style. We got an architect friend who gave us house plans. Then we got a builder who was referred to us. And we just started.Builders are like mechanics. They always underestimate how much the job will cost. I think it is a strategy they use for you to start and then get...
By Ntende John This question is like a farmer wondering whether they should plant or not. Planting is the natural inclination of all farmers. Without planting there is no harvesting. Same thing with wealth. You can't become rich without investing. The real question is not whether you should invest, but when, where, and how you should invest. The wise farmer knows the seasons and the nature of his...
 By John Ntende In many churches, cells, congregations and religious gatherings, financial breakthrough is one of the most common prayer requests. Luckily for us, the bible and other religious texts have already documented the ethical principles for acquiring wealth. We just have to put them in practice. And in any case we have all been blessed with unique gifts and talents right from birth and...
By John Ntende Liquidity risk is simply not having enough cash to meet your present obligations. For example you may own a valuable piece of land but are not able to pay your rent on time.Some assets are more liquid than others. For instance you can withdraw some cash from a unit trust to pay school fees but you can't sell a part of your house. Investments in real estate and businesses potentially pose...
By John Ntende Land is one of the most valuable assets you can ever own. There are various reasons and advantages to owning land.Supply is limited. They are not making more land and yet the population keeps growing. All these people will need to build somewhere.Little capital needed. You can acquire an acre of farm land for less than ushs 3 million. You can buy a residential plot for ushs 3.5...
By John Ntende I have seen some heated online debates on whether it is better to invest in treasury bonds or real estate. Proponents on either side had compelling reasons to support each viewpoint. For instance, the people in preference of treasury bonds pointed out that bonds are fairly safe, liquid and provide a passive income stream. They also demonstrated that real estate is capital intensive, not...
Author: John Ntende I recently grappled with a decision of whether to buy a piece of land or to put the cash in a unit trust or mutual fund instead. This article is inspired by this conundrum. Ultimately whatever you decide to do will depend on your unique goals and circumstances.Deciding between buying land or investing in a unit trust depends on several factors, including your financial goals,...
If you have bought a plot of land you have probably stumbled onto this phrase: 50 x 100!If you haven’t, do not worry; you will soon hear it when you start the search for land.But what exactly does this mean in real estate?Well for the start the full title is a 50 x 100 foot plot.So, if you guessed that it is the linear dimensions of the plot, you guessed right.Land is measured in many ways; AREA, LENGTH...