As a young investor, you must be keen on where to invest your hard earned money for sustainability.
Am not condemning anything here ,just giving an open personal opinion. Being from the Agricultural and Real estate Background.
1. RENTALS
Let’s Assume the Cost of land in a good area 50x100ft is 40Millions, Cost of constructing 4 standard self contained double room units is about 90Millions Total investment will be 130Millions.
Imagine they pay you 250k per month for these rooms meaning a month you collect 1M, A year that’s 12M, remove things like renovations paying the security personnel and maintenance, you remain with 10M a year.
You will need 13 years to get out your initial investment and start earning a profit. However the good thing is the value of the land has grown and you may think of selling off the property.
2. COFFEE
Assuming you have 40Millions at your disposal:
You can buy 4 acres of land in a distant area like 70kms from kampala, each at 7Millions. That’s 28Millions.
1 acre of land accommodates about 450
coffee seedlings if we consider standard spacing of 10ftx10ft.
If each clone/cutting is bought at Ugx 1,500, you will need Ugx 2.7M for all the 4 acres.
Preparing the garden will cost Ugx 200,000 per acre. That’s a total of Ugx 800,000 for all the 4 acres.
Digging holes (pitting) & planting. Each hole will cost Ugx 600. That makes Ugx 1.1M for all the 4 acres.
Manure application. 3 Elfs per acre per year. That’s 12 Elfs for 4 acres in a year. Each Elf costs about Ugx 100,000. That’s Ugx 1.2M for all the 4 acres in one year. Thus Ugx 2.4M in 2 years when your coffee starts giving maximum yields.
Get a simple irrigation system at around 3M
Intercrop it with beans, pumpkins, banana plantation (not more than 305 plants) etc to help you pay the 2-4 employees in those 2 years. PLUS other Miscellaneous costs .
That’s a total of 38Millions invested!
Good quality and well managed coffee clones can start yielding very well in the 2nd year after planting and each tree can give you 3kgs of dry beans.
Each Kg is about 5000shs hence each tree can make you about 15000shs per season and a year 30,000shs
In 4 acres we have 1800 trees *30,000 = 54Millions a year
In 5 years you can make over 250Million
Remember the yields keep on increasing as per the age of the coffee plant.
This money can be enough for you to acquire the best rental apartments in the area of your preference after 5 years
Contact us for Land sourcing, Farm setup and all planting materials and services.
Remember the farmer will have extra large surface of land for future use like forestry, fish farming, piggery, poultry or even selling plots when the value appreciates unlike the rental investor whose land will be all occupied. Invest Wisely.
Leave a comment on what you think ,let’s brain storm.
Spark
September 10, 2022fhfdgdgfgf
Womugisha Felix
November 30, 2022Thanks this a good idea. I wasted my money in rentals before now Iam investing in coffee and Jackfruits.
Andama Moses
December 2, 2022These calculation is really true, have planted 6.5 hacres this year and this mathematics has kept my hopes alive. Am 31yrs in Masindi.
Mutyogoma Joseph
March 10, 2023Awodifo
Owayne
April 8, 2023How much is land in masindi. Would love to be in contact with you
Kironde Joram
April 5, 2023Thank you so much for opening minds of our young people
Muhwezi Ronald Markson
April 6, 2023Landlord becomes rich when he or she is sleeping
Brian
April 6, 2023This is a good idea,
But other management costs should equally be considered,
It’s indeed better than rentals
Maria
September 10, 2022Amazing ? thanks
ghad tumusiime
September 10, 2022Yes it’s true that with irrigation system applied in a coffee garden you can even get more than those ones. after like two years one can get 500millions per year. the issues is most farmers lack information and knowledge.
Nyanzi
December 1, 2022No dear
irrigation doesn’t increase flowering frequency, but keeps yr plants more healthy
Mutyogoma Joseph
March 10, 2023Irrigation increases the flowering, and the fraction of flowers that become seeds, and bigger heavier seeds at that.
Evans Kigenyi
April 5, 2023Yes, when it comes to any kind of plants, irrigation increases plant yields by ten fold.
GERESOME MUGISHA
April 5, 2023Irrigation reduces or eliminates flower abortion thereby increasing yields tremendously.
Charles Kamwesigye (Ibanda)
April 6, 2023Thanks for the message on coffee. While I agree coffee could earn you better than rentals, I think the profits of coffee are rather exaggerated.
There are labour costs,
Manure costs,
Spraying costs( diseases and pests)
Mulching costs
And irrigation costs- fuel etc unless you are using solar whose cost must be more than the quoted 3m.
Susan Namarome
April 6, 2023Great ????
Reid Didier
September 11, 2022So unrealistic
Peter Zziwa
April 9, 2023The problem in Uganda is not mastering the investment scale. Then if this is true, coffee planting has been there for over the last 150years and planted by many people, why then do we have very poor people with just a few rich Ugandans. Then one has to think if he or she has to plan for generational or individual wealth. Ofcourse second leads to the first but how to reach there. Uganda’s problem is not how high or how low one earns but it’s all about the expenditure discipline and learning how to make investment. A Ugandan with a poor financial blue print or minds will be broke in the next one year if even given 500m. However, one with a brilliant mindset will grow 50m to a billion in the same given time of actions. Why are people still poor when we have all seen coffee in our every piece of land we have seen around?
Allan Spark
September 11, 2022Nice one
Richard S.
December 1, 2022Very clear and informative insight. Thanks a lot.
Eva
April 7, 2023It’s very true
MUHEREZA VIAN agronomist
October 19, 2022Habahaha I have liked that ideology, it’s very educative to all farmers and investors. God bless you team
Wani Daniel comboni
October 19, 2022I appreciate your awareness, but if I would have access to the cash,I would go for coffee production than rental..
Simon
October 19, 2022Great insight
Edward
October 19, 2022Makes a lot of sense to me
John B Mugagga
December 1, 2022I have seen times when coffee prices drop miserably possibly because of high supply. Can we sell together?
Otherwise, your comparison is undoubtedly true
Damien
November 30, 2022Very true.
Simon
December 1, 2022Great idea
Osten SW
December 1, 2022All I know is that coffee matures to fruition at 36 months ie three years not 2 as stated
Mutyogoma Joseph
March 10, 2023Cuttings variety matures earlier
Slos
December 1, 2022Good
Evans
December 1, 2022How much would a drip irrigation system for 15 acres of avocado cost.
Kyambadde
December 2, 2022Very catching on pen and paper but farmers need education first before venturing. On the other hand rentals on the other hand give you long life financial Security, peace of mind against life uncertainty that you can’t quantify into money which every person is fighting to achieve but people only focus on the low return on investment forgetting the value of security and peace of mind which is the first goal of life
MBAZIIRA MOSES
December 4, 2022I am MBAZIIRA MOSES, my brother Kyambadde, what I think is that in three years with coffee you can have even rentals, got from coffee plants coz the return from coffee are got faster as compared to rental, so you can easily reinvest in rental from what you get from coffee
Insoluble
April 5, 2023His point lies on financial freedom.
Not everyone has a benefit of understanding financial freedom.
Insoluble
April 5, 2023You are some few inches into understanding financial freedom, keep the hype.
Eloise
December 2, 2022Thanks for sharing
Sebbunza Geofrey
December 2, 2022Thanks for opening our eyes please
Lwanga Charles
December 31, 2022Hope you start now
Obbo
December 2, 2022It’s worth trying
Obbo
December 2, 2022Alatemo
Madit
December 2, 2022Great ?
Joseph
December 2, 2022Thank you, how i wish I knew before.
Nalukwago faridah
December 3, 2022Good idear
Hilary Mawerere
December 6, 2022Very impressive
Mutyogoma Joseph
March 10, 2023Might be true, but how about conflict of interest since the author is also dealing in coffee seedlings? Just asking.
Rita
March 12, 2023These are very good ideas.
Rita
March 12, 2023I’m going to get in touch with you people. You have very good ideas.
Shelly Stella
March 31, 2023This is so interesting I have learnt a new thing,I used to think rentals are better than anything but actually yeah from these calculations I can see how agriculture is so profitable ..this is very true and so interesting
Olivia. K.
April 5, 2023My love for farming increases everyday and this is what am going to concentrate on.
Insoluble
April 5, 2023Thanks for the information.
There was no need to demarket rentals!
However, truth be told, people are still a long way from financial literacy.
Christopher Oyom
April 5, 2023I have no experience with coffee but I want to know about harvest and post harvest costs and in the last 5years ,what was the lowest price for coffee beans on our local market or farm gate price.
Barnabas kwibihirya
April 5, 2023Supportive ideas
EDWARD MUJUZI
April 6, 2023ITS VERY TRUE LETS GLOW MORE COFFEE
Joseph
April 6, 2023I need clarity on what works well cowdanger and chicken droppings, or goats peeps
Emuron roggers
April 6, 2023Yes what if I want to start with one acre how much money will I need for start and which type of soil because I don’t know anything am just alarner please help me thank you sir and to addition i enough papers of education to understand English well please help
Nasur tukasiima
April 9, 2023Nasur tukasiima from hoima have 10 acres in kidukuru village hoima district am expected to harvest this year,
Connie
April 11, 2023Yeah its worth trying than failing to try. Am trying but maybe weather changes ( drought , pests, lack of irrigation methods etc ) can cause a big threat along the way.
NATHAN WOLUKAWU WANDA
June 23, 2023This is interesting and good advice. Some us when we were of age we had no such good advices, instead we wasted our money. So the saying that elders made money long time is not true. I had such unfortunate experience
In 1970 I bought ford cortina car brand new equivalent to current Toyota mark x at Ushs 18,000 .US $1 was Ushs 9 only. In 1971/72 Amin sent away Asian and after 2years there were no cars coming to Uganda, because the blacks who took over business did not know how to order cars. By 1974 car prices had rocked high so I sold my car at 54,000 as I had to go and work in Zambia. With that money I could have bought a lot of land. I could also have built a good 3 bed roomed house with boys quarters. Unfortunately I put it in the bank hoping to earn interest. When Amin was removed I returned in 1981 and visited my bank to with draw my car money. When I got it all out of the bank I could not even buy one crate of beer. What a loss due to no good advice.
Please invest in coffee.even in areas that normally don’t grow coffee try this new variety colon/ cutting it will grow.