Land ownership is one of the most straightforward and riskiest investments in Kenya. Since the boom of the real estate business, many irregularities are reported daily of people losing money to conmanship by acquiring lucrative non-existent properties, especially land and off-plan developments. With minimal legal restrictions, this menace will persist.
However, real estate investors are among the top earners in Kenya and the entire world due to the high returns on investment, which depend highly on the kind of investment (house or land) and the property’s location. The good news is that you don’t have to invest considerable money to earn more; you have to be smart in terms of the area to consider and the anticipated development plans as they determine the appreciation rate.
The bottom line is real estate is still the best investment venture to consider now and always. Below we have listed vital actions to consider before investing in property;
- Do your thorough research – The property should not only give you a relatable outcome but should also fit your budget. Nonetheless, people lose money to properties with non-fulfilling legalities; hence a thorough background check should be done, e.g., a Search for land investment.
- Know the property location – Despite the site being a long-term perspective in considering a property, it corresponds to the current and future value.
- Know the fixed and variable expenses – Property purchase is not a one-and-done business; costs are integral to property maintenance; some are fixed, and some change with time. Early awareness helps you budget appropriately to avoid being in the red always, e.g., paying rates on time for leasehold properties.
- Be clear on the purpose of the investment – Property investment is either a long-term or short-term goal, e.g., acquiring land to develop now is a short-term goal, whereas speculation is a long-term goal.
- Expected return on investment – Determine the expected cashflows to see whether the property is worth taking the risk. Avoid investing in properties with high chances of stalling since they have no value for money.
- Know the payment options available – Not only should the property be within your budget, but you should also be well aware of the payment terms, in general, to avoid straining through the purchase window. Do proper research on the penalties involved and the consequences of forfeit.
Investing in property is one of the most profitable ventures ever to be part of. Always consult a property expert to assist you in navigating the process and making the best investment possible. Be sure to thoroughly evaluate all the essentials above to ensure your investment is worth it.
Head Office: Maendeleo House, 5th Floor, Along Monrovia Street
Postal Address: P.O. Box 47427 – 00100, Nairobi, Kenya
Tel: +254 722 668700, +254 722 668887