Buying land is a big step, and in Tanzania, it’s more than just an investment it’s a way to build a future for yourself and your family. Whether you want to build a home, start a business, or farm, buying land can be a great decision. But it’s not something to rush into. There are important things to think about to make sure your investment is safe and worth it. Here’s a simple guide to help you make the right choices when buying land in Tanzania.

Watch Out for Scams  

Unfortunately, land fraud is a common problem, and some people try to sell land they don’t own or even sell the same piece of land to multiple buyers. If you’re not careful, you could lose your money or face legal battles over ownership. To protect yourself, it’s important to take a few key precautions. Always deal with trusted sellers. Whether you are buying from an individual or a company, make sure they have a good reputation. If possible, get recommendations from people who have successfully purchased land from them before. Doing background research can help you avoid dishonest sellers.

You should avoid making cash payments. Using banks or checks ensures there is a clear record of the transaction, which can protect you in case of any disputes. A documented payment trail is an important part of proving ownership and making the purchase legally secure. Verify all documents before finalizing the purchase. Carefully check important papers such as the title deed and survey plans to make sure they are genuine and correctly registered. If possible, visit the local land office to confirm the details. Taking these steps will help ensure that your land investment is safe and legitimate.

Plan for All Costs  

The price of the land is only the beginning when it comes to purchasing property. There are several additional costs you need to consider to ensure you’re fully prepared for the financial commitment.

One of the first additional costs is legal fees. You’ll need to pay for the services of a lawyer who will guide you through the legal process, handle the paperwork, and ensure everything is in order. If the land hasn’t been surveyed yet, you’ll also need to pay for a survey. A proper survey ensures the land’s boundaries are accurately defined, which is essential for your future development or investment plans. Another cost to be aware of is stamp duty, a government tax that typically amounts to about 1% of the land’s value. This tax is a mandatory part of land transactions and should be factored into your budget.

In addition, there are other fees you may encounter, such as the certificate fee, which is required for various official documents, and the registration fee, which covers the cost of registering the land in your name. You might also have to pay a premium depending on the land type and its location. Land rent is another ongoing expense, especially for land with a Granted Right of Occupancy, as it typically comes with annual payments. the deed plan fee and application for title costs are necessary for registering the land and ensuring that the title is legally recognized. All these costs can add up, so it's important to budget accordingly when planning your land purchase.

Think Long-Term  

When buying land, it’s important to think about the future and how the area might change over time. Consider whether the land’s value will increase and if it will remain a good place to live or work in the years ahead. One factor to think about is resale potential. Choose land located in areas that are likely to experience growth, such as places near new roads, upcoming towns, or developments. Land in these areas may increase in value as infrastructure improves and more people move in. It’s also essential to consider environmental risks. Check if the land is in an area prone to flooding, erosion, or other natural hazards. Understanding these risks can help you make an informed decision and avoid costly issues in the future.

Community safety is a key consideration. Ensure that the area has a good reputation and is safe for living or doing business. Research crime rates and talk to local residents to get a sense of the community’s stability. Choosing a safe, growing area will help protect your investment and provide a better quality of life or work in the long term.

Buying land in Tanzania can be a great investment, but it's important to approach it thoughtfully and do your research. Take your time to understand the type of land ownership, check its legal status, and enlist the help of a lawyer to guide you through the process. The location, costs, and future potential of the land should also be carefully considered to ensure that you make a smart decision. 

As Tanzania’s economy continues to grow and develop, buying land now could be a step toward a brighter future, whether for personal use, business, or long-term investment. However, it’s essential to be cautious, ask the right questions, verify all the details, and seek professional advice when needed. With the proper care, you can avoid problems and make an investment that will bring value to you and your family for years to come. Happy land hunting!

Director Brighton Ross Kinemo (MIoDRT 1930) is the Head of Training and Data Sales at the Dar es Salaam Stock Exchange (DSE). An Associate Member of the Chartered Institute of Securities and Investment (CISI UK) and an Member of Institute of Directors Tanzania (IODT), he is also an alumnus of the Maastricht School of Management (MSM), Netherlands, where he completed a Strategic Leadership Program, and Certificate of Leadership from Uongozi Institute. Reach him at bross@dse.co.tz