A lot of people continue losing their hard-earned monies to Real Estate Fraudsters every year. My own estimate is that up to $2m is lost every year to con men who sell non existent residential properties.

Having been studying real estate fraud stories that have been appearing in the local press I have realised the following trends.

1. People are losing money through buying from individuals
2. Loss of money through buying infill residential stand

I would have wanted to give more trends but for now let me concentrate on the above 2 trends/observations. So why should you avoid buying from individuals?

1.The Risk with Individual Real Estate Players: Buying stand kubva kumunhuwo zvake is looking for trouble. Munhuwo zvake haana chaanotya pa reputation yake. Anyone can place an advert in the local press and dupe people and manage to run away without fear of damage to reputation and the resulting repercussions.

2. Infill Stands: They are the easiest to sell it seems. First time residential buyers are likely to go for nice suburbs. Mt Pleasant, Strathaven, Mabelreign, Marlborough, Avondale etc. Now in these suburbs there are no new developments but instead you are likely to find Infill residential stands. These infill residential stands pose the greatest risk when it comes to real estate. Most of these infill residential stands are fake.

So how can you reduce being conned?

1. Avoid buying residential stands advertised as Infill Stands, even involving lawyers in the purchase process does not help. A close friend was duped together with his lawyers when he wanted to buy an infill stand in Marlborough.
2. If you can just avoid buying from individuals-even close friends and relatives cannot be trusted when it comes to buying real estate.

So what do we recommend?

To reduce risk just buy residential stands from established reputable companies. Try CABS, Fidelity, Old Mutual, FBC etc

Iam yet to see anyone who has taken the above institutions to the courts after being conned. These institutions have a reputation to protect so they is no need to risk by selling fake residential stands.

Iam yet to see in the local press a single incident where developments by these institutions have been destroyed by the City Council or where anyone took them to the courts.

So avoid Infill Stands and also avoid buying from Individuals. Even real estate agents have been known to dupe unsuspecting members of the public. So for safety try established institutions and save your money.

Good Luck

From inbox

I am a Diasporan whose work permit has expired and my job contract is not renewable. I have a gratuity of $50 000 which I want to invest. What business can I invest in as I am seriously considering coming back home?

Responses from ZBIN Forum Members

Momo : Build a house if u don’t have

Connie : a house is not an investment

Tichaona: . I thought a house is a very good investment. Explain why is it not please?

Govero:  first house. yes its a liability but second third is now investment

Adolf T:  whats your area of speciality.i suggest you venture into things you understand.

Momo:  Actually here it is becz u can rent it out n ur money is secure..other businesses you can get a loss or rikanyura then wat?? With property u won’t go wrong..#mythinkinking from what l have seen.

Malcom: if you use only 10 thousand in two spin you can make over 80k

Connie Kudzai:  elaborate further

Innocent: I  buy a truck

Connie Kudzai : elaborate

Clara Mapfumo Hahahahaha a truck? Risky investment

Nick : This is a very serious question which we can respond to seriously, If this forum is meant for serious business people i suggest we respond with maturity, advise each other and allow space for serious engagement. The only discussion I have heard so far …See More

Connie: What hidey didn’t tell us is their risk tolerance. If you are risk averse stick to slow growth investments like real estate. If you have a reasonable appetite for risk, then you can do commodities like the diamonds as suggested but I am not well versed with that line of business

Phillipah:  Invest your money with asset management companies outside zim

Adolf T:  do that which u understand well..never take chances in Zim the playground is very uneven and full of uncertainities hence i support property development..never take chances and try to ferry passengers..

Penyai Rotai: Milling for makorokoza

Rueben : There is need to establish area’s of you business passion and possibly some qualifications. Then from there we can be in a position to offer valuable business advisory services…

Ad Mire : you could invest in technology startups there are a lot of promising ones

Ad Mire : you could invest in technology startups there are a lot of promising ones

Netcle : Do ur research n buy a container of a product or products that sell well in zim from china then wholesale them ie kitchenware, toys, e list is endless

Richard : Look for a Niche Market where you buy and sell a basic commodity (Sugar, Bread, Milk etc) at the lowest price possible say @ 15% mark up with a guarantee of 100% sales meaning you push volumes rather than a huge profit so for $50 000 you are guaranteed of a profit of $7 500 a day which in turn gives a weekly figure of $52 500

Francis : Huya tichengetwe nehuku

Joseph K: $50000.00 is a good starting point. Your options are vast with such kind of capital outlay. The following areas maybe rewarding and the capital requirements can be tailored within your available basket. Nissy  My dear in Zimbabwe believe it or nt u need a house, a roof over ur head u can invest munezvimwe zvese taona alot who have tried zvematrucks anongozofa uchivharwamari nema driver or mamine kuzim vakomana vachovanokwidimbira ende kwekutaura hakuna. In z…See More

Joseph K: Interestingly the rental market is becoming over saturated.

Adolf T:..but no doubt u wl get at least something back..low risk minimum returns

Cathrine : You can venture into the truck business long distances its got huge profits-Open a high end restaurant Or buy mining equipements from s.a and hire them out in zim

Joseph Kaundura That is wisdom

Cathrine: A house u can buy when money starts to flow coz the mentality of being landlord is too safe for a enterprenuer go big or go home #makeachange

Pilot : buy a stand and build a house thus a long term investment

Joseph : My understanding is that she is going to be out of employment. How is she going fend for herself.

Canisia:  I say look for a credible MLM company . Invest or partner with them and start a personal franchise. U reap big. In a short time u could be making more than a 100 thousand per quarter.

Iris Linda Baiwa:  My advice will be whatever you chose don’t invest all your money in one biz teya kwakawanda and whatever you chose make sure start small with less capital and see how far it gets you cz u neva can lose big tyme that way.good luck

Baba : Import used cars & we’ll make you rich

Sipho : Investment into real estate. At least you’re almost all guaranteed your money back within a certain number of years and then the profits later on

Watson Musenda $50k in real Estate thats little….what will he buy,southly stands or you mean a House in Chitungwiza?Then what? Property prices are not moving up at all because of jambanja stands.

Sipho : Harare isn’t the only viable market in zim. Gweru has got lucrative deals when it comes to real estate, like for instance, you can cash 50k for a house in southdowns a low density suburb and the likes and get a rental fee of about 400-800 depending on the house. So don’t just narrow your options to just harare

Tichaona : put a few in contraction in a few years vanhu vacha tanga kuvaka zvotyisa muno muzim

Hardy : Uya tivhure bottle store kuno

Justice : whichever advice u gonna get, building a house(s) in high density suburbs is the best advice u cld be given at the moment, and the wisest move u could ever make in this point in time…any other venture unonyura….and that is the reality on the ground!

Watson Musenda yozopwanya that house,what an investment?

Justice : when you have $50 000 there is NO way you can buy stand kuma UNAPPROVED sites…get that!

Samuel: Come & do yr research ,but retailing in grocery is no risky nowadays . Ground is not even pliz be carefull.

Chiedza: buy n sell motor spares.

Mehluli: Gama invest in my business/company…tht way you’ll never go wrong…

Arshford:  try farming

Pro-drivers Zimbabwe its a challenge bro- the climate is doomed- everything is risky nowadays. a house can b demolished- shop ramsacked- and its our authorities. Bite yo lip and invest in something u like- u have knowledge abt it. zvoda kushinga bedzi

Justice:  hey guys everything is risky everywhere even in the UK ikoko that’s the nature of business! there is no such thing as a safe investment ! a house is safer but not safe at all! you say if u get into the transport business unobirwa nema drive…See More

Joseph  You are wise

Govero  They have knowledge but you show me wisdom

Adolf T.  just do what u like,u have knowledge and understanding in..50k is big money to venture into anything u dont really know about nomater how lucrative people say about it..Strive ventured into telecoms coz of his vast knowledge and xposure in telecoms..

Connie  to answer the questions about a house and profession, hidey is a buyer and also owns a house in Budiriro where the family stays

Leeroy Bernard : 50k is a lot of money and u could start several projects from it, with large sums of capital never put all your eggs in one basket. I am firmly against giving “ideas” because i believe there is nothing like a bad business idea, the determining factors …See More

Sipho : Mind you, a business plan puts the environment at the pedestal. Because in the end plans are limited by the vicinity. So you might draft your strengths and no one buys that idea. What’s best is you look at what at the do withouts of a target market, then you build around that.

Leeroy Bernard  If still u cannot get an idea then become an investor. There are sooo many guys with innovative ideas out there…and you have capital…1+1. Im sure with 50k you could invest in over 10startups and all you hve to do as an investor is follow your investment and wait for returns

Joseph : Leeroy you are spot on

Portia : Leeroy Bernard interesting but i have a follow-up question. startups in Zim or elsewhere and how do you ensure they are not conmen

Newman  ..try farming bro

Justice  mmmmmm farming? farming is not as easy as you think! it’s fine when your a growing your little garden but once u put a hactare of anything it becomes a whole new ball game

Newman  ..it depends with what u are farming

Leeroy Bernard  Its very very risk u I think of people venturing into fields only because they’ve seen so and so making money from it. Farming is extremely risky if you do not have the passion and information on it. Drought, pests,excess producton dropping prices are but…See More

Florence : Be a gold dealer kana wakashinga

Justice  mmmm field of business rawaakutaura iri ka! it’s not for the faint hearted

Misheck Ndiro rinoita~manje im in it! Fortune favours the brave!!!

Leeroy Bernard :  Fields such as ict, medicine, education, power, recycling, water treatment, value addition in packaging, processing etc are begging for innovation and entrepreneuers and are gold mines. We need to get rid of the proverbial box and start thinking creativly

Leeroy Bernard:  A business plan should tell you how serious a proposal is. It will show you if the originator of the idea has done his homework and if its viable for investment. Also, being an investor doesnt mean giving away money and hoping for a return. You have to …See More

Leeroy Bernard Hope that answers u @ Portia

Tisha Tee: Real estate u wont go wrong

Godfrey  u a 100% correct

Stableck Savere I 100% disagree, u keep the value and then

Justice:  but your need to be in Zimbabwe to see what’s on the ground! hazviitwi by blue tooth Mari yako inoendera mahara

Stableck:  Inbox me for more details, ndine Real Investment, one thats gets better as the economy gets worse. Hope u serious

Joseph : Sounds interesting, what happens if the economy gets better

Calven : tenga ma kombi

Max  Would advice him to venture into animal husbandry.mombe nekuchengeta mbudzi.its a medium term project but it pays in the long run.

Mike : when you back inbox, we sign contracts

Micheal : l am into mining and with the challenges l am facing considering my start up capital,l can only imagine if it was me with that $50k as my start up capital

Justice  REALISTIC ADVICE:Use yo $50k to buy a PERMANENT VISA and to RENEW THAT CONTRACT and stay wherever it is where you could raise that kind of mula…..

Liberty : True

Joseph:  JUSTICE staying outside the country is never the best thing. It is common cause that most people from other parts of the world in diaspora will always invest in their countries of origin. It is therefore my take that this person asking for advise want.

Tichaona: burn it in the fire

Leeroy:  I still maintain there is nothing like a bad business idea just the level of inovation put into it. What if he built a house in a resort town/area and sold it to 10 different people under a timeshare plan. They all own the house for periods through out…See More

Watson : Your ideas are brilliant but its $50k,its not enough for that massive construction,he needs land,building and fittings that all cost money….Break down the expense…probably he needs a partnership to complete the concept.

Mcshaman : You’re very right about the level of innovation put into it as competition is quite stiff and a number of people are already implementing these ideas. However, they’re great feasible ideas which need careful planning and execution, as well as a market that is very liquid.

Leeroy Bernard  In the 70s a man had an idea of selling pet rocks. Rocks make the best pets, you dont feed them, bath them, walk them. Each rock was sold for about $4 and was sold in brown cardboard box with holes so the rock could “breath”,,,in a year he made millions in revenue,,,,there are no bad business ideas

Munashe:  Unonyura…if econet is reporting low profits for the half year wat makes u think ur buz will grow?Vanhu vanemari dzakadaro varikunyura as they finance losses in the early years

Mai Anashe: so u are suggesting kuti adii? business has its ups and downs. sometimes u win sometimes you lose. it’s risk taking. graph re business harisi steady if you what I mean. even America inoomerwa.

Munashe : Rather use some of the money to renew ur permit

Adolf T:  you want the person to remain a slave forever now

Magret:  We can start a business together got ideas

Watson :  Can buy and sell Gemstones. Eg Tomolin buy for $1000per kg sell for $30000 kg

Adolf T.  risky..does the person know gemstons at all..tomurova nemahwambi nemabhotoro zvedu

Connie:  Watson  are you sure about the values that you put there for tomolin because that is too good to be true. What percentage of profit is that?

Mai Anashe : just a piece of my mind, don’t put all your eggs in one basket

King Krayza  come and invest a quarter of in farming be it animal husbandry or crops. Or be an importer of maize

Akiyana:  Come home identify a farm with enough water to irrigate 10 hectares then venture into maize farming u get your invested capita l plus lots of profit

Teesy:  I will advice buy a house n get a monthly rental hako coz bznz unogona kunyora woona wakafira mahara force past yrs ukachema

Baba:  Powerful

Thandi:  Import maize from Zambia and sell in Harare or Bulawayo. Some are selling in Zvishavane and they are making gud bucks. Passenger transport with a very good coach doing routes like Gweru to Lusaka ey pay. Passion os whats needed. Best is to invest in things you enjoy doing so that you will be hands on. Too much mbavha is the problem. Havachabi muhomwe dzevanhu asi vakuba kubasa

Ethel: Start a real estate co u wont go wrong

Adolf T.  all these ideas having been said are surely the best but guys one has to know these things..again most of the people who quickly went overseas are not business quality but rather working quality..those who can effectively work for organizations who em…See More

Adolf T.  just simple housing and get that little usds while u try other things or even getting employed again elsewhere..like i said most of us are working type,very good ones,productive,panctual,obidient etc..and not CEOs or employers..anopera madhora ose dhuu nematsotsi azere muZimbabwe kkkkk

Syden:  come back hame and start a business

Mdala Wa Rue: Brilliant responses—our post of the year!!!

Misheck: All ideas are pretty good except that guy asingafunge ~my advice to e friend *Invest in a business where u have a strong passion in !

Reggie:  It’s all down to asking yourself the hard questions. Entrepreneurship is no walk in the park and there are more than 90% chance you will lose it all and almost stroke.

Reggie : And please do a business model that fits to usd50,000 and ask people already doing successful business. $50k is not much for a lot of business models and a good startup advisor can show you where the money will run short not necessarily that you will be having a bad idea. I advise not to play around with your gratuity, especially if you have a family

Philip:  The best for me was 1. Do not put all your money in one investment 2. Find your passion and make it make money for you 3. Therz no business without risk. 4. Start small as you assess.

AB Jobsite Agriculture sounds good but do not stand on that alone, diversification is the best. Also on farming take potatoes. If you like to start something new with amazing results, there is a business idea I am selling. You can contact me for more information and I will make it known to you.

Philip  True that. Potatoes are said to be the second highest earning cash crop for Zimbabwe in 2014

Innocent : I have tried to read some of the replies. My advice is from all the information you got you have to consider what interests you and what field you know. For example green mealies project is a good idea but only if you have the farming knowledge.

Justice : green millies is easy, low capital outlay! i mean ndiani asingagoni kurima chibage

Daniel  I also has managed to raise $50000 in 5 years dealing in second hand tyres. Maybe there are plenty of tyres where you are. You can consider shipping them to Zim. This is my number 0774343309

Peter  Also check prices of alluminium consumables in Kuwait(window section and door sections)

Innocent  Jus buy bronclear and yu get rich

Brian My belief and training suggests that a business should be born out of enterprise first before capital. Im do not support the idea of the Cart before the Horse. As a country we are also facing similar problems of people obtaining education for position…

Watson  With our economy a house is not an investment with the way rentals are going down,or houses spending 2,3 months with out occupancy thats a risk investment. A house can only act as a security for future but not as an income generating property…you might go 2 months without rental paid.The question is what brings money daily,weekly or month end??The family should survive boss.

King Krayza guys when you ask for options on how best you can invest, pliz update us when you final make a decision. Some people take time to give out valuable advices which some are paying for at bussness consultants. So now one asks and never came back with his/her progress, how how you expect all who advised you well to feel???

PS* Post originally appeared on Zimbabwe Business Ideas and Network in November 2015