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Common Mistakes to Avoid When Investing in Zimbabwean Real Estate

Real estate remains one of the most resilient and profitable investment avenues in Zimbabwe—especially for those looking to hedge against inflation or generate passive income. However, even the most promising investment can go wrong if you make avoidable mistakes.

Whether you’re a first-time buyer or a seasoned investor, being aware of these common errors can help you make informed decisions and protect your capital.

1. Skipping Thorough Due Diligence

Due diligence is the foundation of any sound real estate investment, yet it’s often overlooked in Zimbabwe where informal transactions are still common. Investors sometimes rush into deals based on the word of a friend, agent, or seller - without verifying key details.

✅ What You Should Do:

  • Confirm ownership through the Deeds Office to ensure the seller has legal title to the property. Ask for the title deed or lease agreement.

  • Investigate council records to ensure the property is not under dispute or part of a government development plan (common in high-density areas).

  • Check for caveats or encumbrances. Some properties have legal issues attached to them, such as multiple claimants or unresolved estate disputes.

Example: A buyer in Harare’s Budiriro suburb paid for a stand only to discover it was on land earmarked for road expansion by the City Council. Without due diligence, the entire investment was lost.

2. Overpaying for the Property

In Zimbabwe’s fragmented property market, pricing often lacks transparency. Sellers tend to set prices based on emotional value or inflated comparisons, rather than current market trends.

✅ How to Avoid This:

  • Hire a registered property valuer to assess the market value.

  • Research comparable sales in the area through agents or platforms like PropertyBook or Homelink.

  • Be prepared to negotiate assertively - especially if you're paying cash or have pre-approved financing.

Tip: Properties in areas like Mount Pleasant, Borrowdale, and Gunhill are often priced higher due to prestige, but that doesn't always translate into higher rental yields.

3. Ignoring the Legal Process

Verbal agreements, handwritten contracts, or informal handovers are still prevalent - but dangerous. Without proper legal channels, your investment is exposed to fraud or disputes.

✅ What You Must Do:

  • Engage a qualified conveyancer to manage the transfer process. Avoid middlemen who are not legally accountable.

  • Verify the estate agent’s license with the Estate Agents Council of Zimbabwe.

  • Never pay the full purchase price upfront. Use an escrow account or staged payments tied to clear milestones (e.g., verification of title, municipal clearance).

Cautionary Tale: In Chitungwiza, several investors were scammed by a fake agent who sold the same stand to multiple buyers. The victims had no legal documentation to pursue recovery.

4. Underestimating Hidden Costs

Many buyers focus solely on the price of the property, but real estate in Zimbabwe comes with numerous additional expenses that can affect your return on investment.

✅ What to Factor In:

  • Legal fees (typically 3-5% of the property value)

  • Capital gains tax, which the seller is legally required to pay, but often shifts to the buyer during negotiation

  • Municipal rates clearance, required before transfer

  • Renovation or structural repairs, especially for older homes

  • Utility connection fees (ZESA, council water, sewer reticulation in new developments)

Example: A buyer in Ruwa discovered after the purchase that the property had no water connection. They had to spend over US$2,000 to connect to council infrastructure.

5. Choosing the Wrong Location

“Location is everything” is not just a cliché - it’s a core principle in property investment. In Zimbabwe, location influences not only market value but also tenant demand, rental income, and long-term appreciation.

✅ What to Evaluate:

  • Accessibility to roads, public transport, schools, and clinics.

  • Security of the area, including crime rates and availability of police presence.

  • Planned developments - areas with ongoing or upcoming infrastructure projects tend to appreciate faster.

  • Market demand, particularly for rental properties. For example, student rentals near MSU (Midlands State University) or UZ (University of Zimbabwe) have high turnover but steady demand.

Pro Tip: Before buying in a high-density suburb, visit during the evening and weekends to assess traffic, noise, and safety.

6. Not Having an Exit Strategy

Investing without a plan for how you'll cash out - or earn income from your investment - can leave you stuck with a non-performing asset. Real estate is not liquid, and exit timing matters.

✅ Questions to Ask Yourself:

  • Will you rent the property short-term, long-term, or leave it vacant?

  • What’s your timeline to sell, and under what conditions?

  • Do you have a property manager if you're an absentee landlord?

Strategy Insight: Some investors buy small cluster homes in growing towns like Marondera or Gweru for rental income while planning to resell after five years when prices increase. This is only viable with clear long-term planning.

Final Thoughts

Real estate in Zimbabwe can be one of the most rewarding investments - if done correctly. Avoiding these common mistakes requires discipline, the right professional support, and a mindset focused on long-term value, not short-term gains.

The key takeaway? Don’t rush. Do your homework. And always seek professional guidance before making a commitment.

📌 Coming Up Next:

Stay tuned for our next post:
“Financing Your Real Estate Investment in Zimbabwe: Options and Tips” - where we explore mortgage providers, joint ventures, and creative strategies for funding your next deal.

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