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Writer's pictureAfrica Luxury Properties

5 Tips When Investing In Zanzibar Real Estate



Some of the major keys to success when investing in Zanzibar real estate, are to secure the correct property in a prime location, for the ideal price. It is crucial to analyze both these factors, separately, however, it is the combination that will maximize an investor's chances of seeing the optimum return on their investment.


Here are 5 tips that you should consider, when investing in Zanzibar Real Estate

  1. Use An Established Real Estate Agency

  2. Complete Due Diligence Checks

  3. Enlisting the Service of A Lawyer

  4. Have A Clear Project Plan

  5. If Its Too Good To Be True ... It Probably Is !


Use A Good Real Estate Agent


A well established real estate agency or property investment consultancy firm can provide invaluable guidance, support and assistance when navigating the Zanzibar real estate market. Whether you are interested in Zanzibar land for sale, Zanzibar hotels for sale, Zanzibar villas for sale or Zanzibar houses for sale, enlisting the services of real estate agency can significantly help.


Here at Africa Luxury Properties, we tailor our approach to each individual, client or investor, connecting them with dream properties that meet their project goals and requirements. With an extensive network of industry contacts, land owners and other stakeholders, our clients can rest assured that they are in the best hands to secure properties that will meet their project goals and produce a robust ROI.


Complete Due Diligence Checks



When buying Zanzibar real estate, it is crucial to ensure that you are doing business with the genuine owner of the property. Anyone can claim ownership of a property and attempt to sell it, intensive due diligence investigations separate the frauds from the real owners. Done correctly, this process can save investors thousands of dollars be ensuring that they only purchase land that can legally be disposed by it's owner. The due diligence process is often very time consuming and resource intensive, often taking a large chunk out of pre-investment expenses.


The best way to mitigate these large expenses is to work with a Zanzibar based real estate agency. This is because established agencies such as Africa Luxury Properties, invests heavily in conducting due diligence investigations for each of their properties prior to listing. Africa Luxury Properties meets with regional authorities to gauge the property ownership history, speaks with neighbors, tracks/traces submitted documentation to vet authenticity, runs ID checks on owners and other industry leading methods to ensure that the owners of all properties listed or marketed, have the legal right to dispose of the property.


Enlisting The Services Of A Lawyer



Investing in any country as a foreigner is risky. Enlisting the services of an experienced lawyer can be the difference between a successful transaction and a failed transaction. If you are a non-citizen, especially one who does not speak the local language, a lawyer is an invaluable asset to have on your team when buying Zanzibar real estate. Ensure that your lawyer is well established, with experience in the Zanzibar real estate market. All processes along the transactional chain should be overseen by your lawyer to ensure that you are in compliance and protected in the eyes of the law. From due diligence checks, to contract creation, to filing for ownership certificates, each step requires a lawyer if you are to ensure a hassle-free transaction. Africa Luxury Properties employs a team of real estate lawyers that conduct due diligence checks, creation of contracts and client support/consultancy.


Have a Clear Project Plan



Project planning provides a clear structure and heightened foresight for the execution of your project, helping to drastically reduce or eliminate wasteful practices, activities and patterns. Attributed to this fact, investors that establish a clear project plan and stick to solid project management practices significantly reduce capital and resource wastage.


Whether you are interested in purchasing Zanzibar land for sale, Zanzibar hotels for sale, Zanzibar villas for sale or Zanzibar houses for sale, you must clearly define your project plan and identify the project goals/objectives. Creating a feasibility study, business plan, scheduled goals/objectives list or project plan can assist greatly with defining your project goals and helping you achieve your final goal.


If It's Too Good To Be True .... It Probably Is


Like most things in life, ' If it's too good to be true ... it probably is', investing in Zanzibar real estate is no different. Of course, we occasionally come across deals which are simply jaw dropping, often due to the

  • Death of the Owner - the family opts to sell the property and share the funds

  • Owner Migration - the owner plans on leaving Zanzibar and opts to sell all assets

  • Emergencies - the owner wants to quickly dispose of their property to meet other financial obligations

Zanzibar is a quickly growing tourist destination, with land prices increasing on an almost weekly basis. Finding cheap land for sale, below market value is becoming more and more difficult, so if an individual or 'agent' brings you and investment opportunity which just seems too good to be true, it just might be, so be sure to do the due diligence. Here are some red flags to look out for -

  • Very Low Asking Price

  • Missing Documentation

  • Unable to Identify Genuine Ownership

  • Refusing to Share Documentation for Review

  • Requesting Payment Prior To Contract Signing


Investing in Zanzibar real estate can be very financially rewarding, those who attain this success are sensible, knowledgeable and informed to take careful steps to maximize their ROI. One major misconception of investors that they can simply buy any type of property in any location and see a positive return on their investment, this is not always the case. Consult a real estate professional before spending a single dollar, reach out to the best real estate agency in Zanzibar, Africa Luxury Properties, they do all the worrying so you don't have to.

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