Friends, in the recent past I have written about Nest Uganda and their offerings to the Market, in this article I go in detail to highlight their unique approach to the Construction service offerings.

What is the Save & Build Plan?

The Save & Build plan is an innovative prepayment scheme offered by NEST Uganda, one of the leading construction management firm. This plan allows clients to make monthly payments towards their construction projects, providing a structured and financially savvy approach to building their dream homes or commercial properties.

How Does It Work?

NEST collaborates with Xeno Uganda, a regulated fund manager, to maintain a business unit trust account. This partnership ensures that all payments are meticulously tracked and that prepayments earn interest for their clients. The interest rates, typically ranging from 9-12% annually, are determined by Xeno and are fully transferred to the customer, effectively boosting their construction budget.

Analysis of a 3-Year Save & Build Plan from a NEST Client

It’s important to note that the contribution amount is per person. Therefore, you would need to contact NEST directly to discuss a plan that works for you. Whether your contribution is UGX 500K or UGX 5M, there is a plan that can suit your needs.

Pros

• Customized Xeno Accounts: These accounts enable clients to track their payment progress, providing better accountability on the client’s end. This transparency is crucial for clients to monitor their investments and ensure that their funds are being utilized effectively.
• Technology Integration: Xeno has been a leader in incorporating technology for unit trusts, making it a good match for the lengthy timelines of real estate projects where accountability is crucial. The use of advanced technology ensures that clients have real-time access to their account information and can make informed decisions about their investments.
• Credit for Completion: The company offers credit based on adherence to the prepayment plan to help complete the construction. This specific client is now on a two-year credit plan to complete their construction. The credit is provided in the form of materials and labor; cash loans are not facilitated. This approach ensures that the funds are used directly for the construction project, minimizing the risk of misallocation.

Cons

• Specific Use Case: The Save & Build plan is only suitable for individuals who intend to construct. In such cases, you would need to open a unit trust account directly with any of the regulated fund managers. This limitation means that the plan may not be suitable for those looking for more flexible investment options.

Client Testimonials

Clients who have used the Save & Build plan have praised its structured approach and the peace of mind it provides. One client mentioned, “The Save & Build plan allowed me to systematically save for my construction project without the stress of managing large sums of money at once. The interest earned on my prepayments was a pleasant bonus that helped me stay within my budget.”

Future Prospects

NEST Uganda continues to innovate and improve its offerings. With the success of the Save & Build plan, the company is exploring additional financial products that can further assist clients in achieving their construction goals. The integration of more advanced technologies and partnerships with other financial institutions are on the horizon, promising even greater benefits for clients.

If you have any burning questions about the Save & Build plan, you can WhatsApp us at +256709757168.

Next Saturday, I will be hosting a space with NEST Uganda to have detailed discussions about Save & Build, including how it compares to Real Estate Investment Trusts (REITs). You are all invited.

Happy Investing Everyone

Alex Kakande