Locals spread investments abroad

Harold Ayodo

More enterprising investors in real estate are eyeing property abroad in a bid to spread their fortunes.

And thanks to technology that has made the world a global village, prospective investors can search for property online before taking their pick.

Information Technology (IT) enables real estate firms to list thousands of properties from hundreds of estate agents globally.

The online firms then update their database frequently to ensure listings are current and clients can find their ideal property.

However, the secret to a successful purchase of property abroad lies in finding the right property in the best location and at the lowest possible price.

Many foreigners own holiday apartments, town houses, luxury villas or land in Kenya while some wealthy locals own property overseas. For instance, real estate agents say more clients are inquiring on purchasing property mainly in Tanzania and Rwanda.

According to the agents, these investors anticipate a property boom especially with the move to cement the East African Community (EAC).

However, some prospective investors seem to assume that since foreigners can secure prime property in the country, they too can easily do the same abroad.

Many do not to understand that property transactions abroad, just like at home, cannot be done across the counter but that one must involve a practising advocate of the High Court in the country one is interested in.

The advocate would be in a position to brief you on the legal requirements and possibilities of investing in the target country, as property laws are different.

For instance, under the Tanzanian law, occupation of land by non-citizens is restricted to lands for investment purposes under the Tanzania Investment Act 1997 and Land Act 1999.

Furthermore, land in Tanzania is government property — citizens or non-citizens only lease for 33, 66, or 99 years, depending on the nature of the investment.

Prospective investors from Kenya should also know that the law in Tanzania forbids individuals from selling land to foreigners.

Until the EAC harmonises property laws, foreigners can only lease land in Tanzania through the Tanzania Investment Centre (TIC). On the other hand, Kigali is also emerging as a destination of choice as many international organisations pitch camp in the ‘Land of a Thousand Hills.’

Rwanda, which welcomes investors, is the first country in East Africa to publish her national land policy report. According to the report, Rwanda’s land policy has prioritised land as an important component in the national economic transformation.

Kigali may be lucrative but scarcity of land is a growing problem due to its small size and rapid population growth from 1,594,400 in 1934 to nearly 11 million this year.

As the desire to invest abroad shifts to top gear, prospective investors should be wary of on-line fraudsters who may ‘sell’ them non-existent property.

— The writer is a lawyer and journalist.