Learn how use mortgages to own/buy multiple real estate properties in Uganda.

The constitution of Uganda explains clearly how the mortgage, work in Uganda under.

THE MORTGAGE ACT 2009.

It stipulates it as follows

An Act to consolidate the law relating to mortgage to repeal and replace  the mortgage Act, to provide for the creation of mortgage for the duties of mortgagors and mortgages regarding mortgages for   mortgages  of  matrimonial home, to make mortgage take effect only as security to provide for priority taking, consolidation and variation of mortgage , to provide for suits by mortgagors the  discharge of mortgages , covenants conditions implied in every mortgage, the remedies of mortgage and mortgages in respect of mortgages,  for the power for court in respect of mortgages, and for related matters.

DEFINITIONS

Mortgage is a legal  term referring to the convergence of little(legal or equitable interest) in real property by borrower to lender for repayment of money or loan.

Mortgage is agreement in which money is lent to a borrower for home construction or purchases, buying or ban plots/real estate properties.

A mortgage is an agreement between you and a lender that gives the lender the right to take our property if you fail to repay the money you have borrowed plus interest.

You can own your dream home by property using a mortgage to finance it with up to 70-100% financing is most financial institution or lenders are willing to lend your 70-80% Financing on a commercial property and 80-100% financing to a residential property that you are going to live/stay in and these rates differ from one can use this property as the security against the mortgage.

These is another opportunity of purchasing the second property by taking a lien and take up a second mortgage after you have paid some money on the first mortgage and increased equity in your property.

Them use the money to acquire the second property and i urge you to purchase a cash flowing property that will pay up the mortgage/loan and still have  something to take home per month as you return on investment ( ROI). Let this cash flowing property pay up the monthly installments on the mortgage until its paid down and when its paid down you, can reference to buy another property and grow your real estate portfolio or become financially free as people say today.

In any case of incentainities when you can not meet your mortgage obligation on the property is not producing any income, there are ways that will help you not to get foreclosed on by the lender or financial institution.

One of the ways not  to get foreclosed on is to sit down with your lender and negotiate on the mortgage to extend the mortgage period.

Another way of not getting foreclosed on is to take up a mortgage insurance policy that will cover the mortgage insurance policy that will cover the mortgage for any uncertainties that may happen during the mortgage period.

There is another way where you can not  get property and these properties are called ‘’subject to''.

The buyer will automatically take up your monthly payments and the mortgage until its paid down. And the buyer of a subject to property will always consider the  equity in the property to determine whether its worthy of investing his/her money.

One can also become a real estate investor by investing in subject to existing mortgage property by doing proper math on them before buying like renovating them and turning them up into rentals, short term  rental units, lease option and other creature ways that will make the property to produce cash on monthly base and pay the mortgage and as well get himself paid a return on investment (ROI). But get an experienced investor, agent, mortgage broker that will help you structure subject to property.

Pros and cons of investing in subject to properties.

Gets income monthly from the property etc.

Cons to buyers(investor)

Getting foreclosed on when payments are not made.

Some lenders don not like selling mortgaged property and may tend to foreclose on you.

Miss information, the seller may give you false information on mortgage for example a seller may have two mortgages on a property and disclose only one to you(buyer) investor.

In conclusion, mortgage financing is the best financing mode by real estate.

Researched and compiled by Basajja(Ajabxconsult.co.ltd)