Invest in Condos, Dr. Ruparelia tells Real Estate developers

Business Mogul Dr. Sudhir Ruparelia  has advised real estate developers against excessive borrowing to invest in real estate sector.

Speaking during the third edition of  Uganda Revenue Authority’s  ‘Bomba Ya Business summit in Kampala Sudhir advised potential developers not to rush into borrowing until they are able to finance their loans.

"Your success in real estate will only come if you don’t borrow money. It is good business but if you make a mistake and overstretch yourself, it will bring your downfall,” he said.

The business man who  personally built Ruparelia Group brick by brick  Friday  shared his wealth of business wisdom—warning that“Do not expand very quickly, outside your means,allow some form of organic growth,” 

One would  imagine, that  since Sudhir made his fortune, partly because of his investment in financial institutions, he would advise business people to borrow to start their businesses.

“Work hard, create your own cash flow and build without any borrowing. Do not borrow till you own a minimum of four properties. Then you can borrow to expand knowing you can service the loan,” he added.

Three decades ago, Sudhir was a normal businessman in Kampala city.He had used his savings as a taxi driver in the United Kingdom to start a business in Uganda, according to Forbes Magazine.

Sudhir and his family have business interests in hospitality, education, real estate, finance, insurance, labor export, and agriculture, among others.

He told a much publicized event that any economy is determined by demand and supply.

“You don’t plan for things like a pandemic. When the economy is in a recession, one of the biggest hit sectors is real estate. If you are in debt, that is double jeopardy,” he said.

However, Sudhir advised that those who must take mortgages from banks should borrow with a payment plan equivalent to the rent they pay every month. They can then convert what they were paying in rent into a journey to property acquisition.

Sudhir advised people to take up condominium properties instead of investing in homes that are way out of town.

“I think condos are the future because land in cities is getting expensive. We have a traditional view of every Ugandan wanting to own a house and garden. But you can only expand outwards so people are starting to build far out of town. It takes people two hours to get home and two ours to return. That is time you can use for developing your business,” he said.

Sudhir added that condominiums come with more advantages apart from proximity including security.

“A condominium also secure. You are not exposed. Anybody who wants to come and rob you will think twice. Insecurity in the suburbs in a big issue. That will push people into condos,” he added.

Uganda Revenue Authority (URA) on Bomba ya business virtual  summits  seek to equip business owners with financial growth skills and knowledge to foster business sustenance and voluntary compliance.