Buying properties in Tanzania

What is it about?

Land titles are useful in reducing title related worries among buyers. In developing countries however a buyer can either buy a formal property that has a title of untitled one. If a titled property can not be cheated upon, then one would expect buyers paying higher for it and lesser for untitled ones. Evidence suggest that the lower risk of being cheated during transaction of formal properties induces a higher price only for "unfinished houses". For plot and finished houses risk and price are positively correlated. It seems transaction worries induces a title search that often end-up at higher prices or high price buyer cushion themselves off title related risk using formal land title

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Why is it important?

For potential investors: Local investors, concentrate on informal plots and finished houses because they have adequate social network plus reputation which is necessary for higher price International investors, prospects for profit margin in formal over informal properties is obvious for unfinished housing units

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