A Smart Investor’s Guide to Safe Transactions
Regardless of whether you are a first-time real estate investor or a seasoned professional, it is important to stay updated on the latest trends in the industry. The real estate market is dynamic, and with minimal regulation from the government, investing without adequate information and thorough due diligence can be risky.
Over the years, many investors have lost money, leading some to avoid real estate investments despite the high returns on investment compared to other ventures. The phrase “once bitten, twice shy” summarizes their hesitation. Below, we outline the essential steps you should consider to avoid becoming a victim of fraud.
1. Why are you Investing?
It’s important to understand your reasons for considering an investment in real estate and a specific property. Speculators typically seek products with a high anticipated return on investment (ROI), while home seekers prioritize peaceful locations where they can raise a healthy family.
2. Identify a credible Agent
It can be easy to find property for sale, as many sellers are in your preferred locations. However, it is important to consider their credibility. Conducting thorough due diligence on agents and property owners is essential to avoid falling victim to fraud. Consult a lawyer, trusted friends, or industry experts to gather the necessary information before proceeding with any transactions.
3. Property Visit
Seeing is believing! Be sure to visit the property or send a proxy to verify the exact location, terrain, soil type, accessibility, and neighborhood. You wouldn’t want to invest in a flood-prone, faulty, or nonexistent property.
4. Due Diligence
A property visit is a vital part of the due diligence process, it’s also important to verify the validity of the property’s documentation. With the help of your lawyer, conduct a comprehensive search to confirm the property’s authenticity, ownership, and actual size. Additionally, researching the pricing in the neighborhood can help you avoid investing in an overpriced property.
5. Property Pricing and Other Charges
Confirm the property’s price and check if it includes other costs, such as the transfer fee. This will help you plan your payments effectively.
6. Analyzing the Available Payment Options
Choose a payment plan that best suits your convenience. Are you considering a cash purchase or installment payment? Make sure to gather all the necessary information about these options. You may benefit from special offers for cash purchases, but be aware that there could be hidden interest charges with installment plans. Also, consider what happens if you default on payments; you definitely don’t want to risk losing your money or property.
7. Point-of-Purchase and Closure
At this stage, you should receive an offer letter that specifies the unit of consideration and the correct pricing. Make sure that your details are accurately captured in the letter. Additionally, confirm when you will receive the sales agreement and the timeline for the transfer of ownership.
Mhasibu Housing Co. Ltd is your trusted one-stop shop for properties countrywide. We carefully consider strategic locations, tranquility, and anticipated returns on investment (ROIs). Whether you are looking for the perfect place to build your home or are a property investor, we are ready to guide you. We also offer flexible payment options to suit your needs.
Quick Contacts
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
Email: info@mhasibuhousing.co.ke