Are you living abroad but you want to invest in Tanzania's real estate market? It's not just a fancy investment idea for wealthy investors who are just looking for the next superb way to make money. On the contrary, it's an investment option that runs in the financial projects of many Tanzanian people living outside the country.
After conducting the entire life in a foreign country, many Tanzanians decide to come back to their homeland for retirement. They deserve to enjoy the place where they were born or their parents were born and raised until the day they decided to move abroad.
Investing In Tanzania's Real Estate Is Different
Regardless of where outside Tanzania you lived most of your life, as you put your feet back in the homeland and start looking for a house to buy, you begin to realize that things are pretty different than in most European or American countries.
The first and most evident fact that you will notice when approaching the real estate market in Tanzania is that realtors and lawyers charge higher fees than elsewhere. Beyond these first costs, you will also have to face more costs that come through the transaction process:
- Notary fees: 3%
- Stamp duty: 1%
- Registration fee: 0,25%
- Real estate agent's fee: from 5% to 10%
- Valuation fee: 0,10%
In short, the costs paid by the buyer go from 9,25% up to 14,25%, while the seller pays 0,010%.
Another fact that most foreigners don't know about Tanzania is that all lands belong to the State. There's no way to obtain private land-ownership or to invest in property. People who want a piece of land can apply to get it from the government, they can work that land, but they won't ever become owners.
Foreigners And Tanzania's Real Estate Market
Although all existing lands in Tanzania belong to the State, foreigners can always invest in the property market. The Tanzania Investment Act opens the door to foreigners who want to purchase land for investment purposes. On this point, it's worth highlighting the phrase "investment purposes", as no personal use of lands is allowed by law. You can only become an investor of the land.
But if you want to become the owner of a home or apartment, you have to purchase it through someone who is based in Tanzania. As a rule of thumb, keep in mind that you will be the owner of the home but you won't own the land on which your home sits.
Important Needed Maintenance For Homes
If you want to buy an apartment in a large city, assuming you have a Tanzanian living in the country who is available to help you purchase a property, make sure to know ahead of time all the necessary maintenance and upgrading services and expenses that you will need to occur.
Similarly to most places in this world, you need to call a good locksmith soon after your purchase. You get the home key from the seller or real estate agency, but you aren't safe at all. You can't know if anyone is still keeping a copy of your home key, that's why you should always plan to call a residential locksmith to get appropriate advice. Your main options are getting a lock-rekey service, which will involve lock cylinder replacing, or a lock change service. Both locksmith services are pretty affordable and quick. If you call a good expert, you'll get the job done within a short time.
Advanced Security Measures For Homes
If you can afford something more, you may also request the installation of a new keyless door system. On this point, it's better to ask the locksmith for professional advice.
The bottom line is that such locksmith services don't differ from what you would need for a home in another country like the US, for example. Probably, the only difference is that the US can boast a larger number of professional locksmith companies and an advanced base of techniques and technologies. Check something like https://www.opalockalocksmith.net/residential-locksmiths to get a clue about types of residential services, prices, and other details available in the USA.
Security is indeed an important aspect of your ownership. You won't feel safe until you have provided your recently purchased home or apartment In Tanzania with appropriate security measures.