James Muchoki started his Multi Million Real Estate Company with just 1 thousand Kenya Shilling, and before we share his Journey in real estate investment(His Story Is Coming Up, Stay Tuned), he shares some insights.
Real estate is one of the best bet in terms of areas of investment in Kenya. To get started, these are guiding steps to set you off.
- Just Buy Real Estate Now Not Tomorrow!!
Do whatever you can to buy real estate now or any Prime property for sale in Kenya. It has been evident that properties appreciate very fast in Kenya making them an investment, in a way that if you decide to save money and wait for some time, you might not afford it any more.
2) Do A Little Research On The Actual Property You Are Buying
If in 2010 three people bought three distinct portions of land – one in Rongai, one alongside ngong road and another in Mombasa, and were all to dispose of those properties right now, the values in reality would be very different.
A person who does their research effortlessly gains. You need to assess why you want to invest in that area. take a look at what is coming up in that place and its relative distance from essential urban establishments.
If it is close to the standard Gauge Railway (SGR) as an instance, it needs to be close to a station. before committing any of your lifetime financial savings, do right due diligence.
4) Invest In Low Cost Housing
According to a report released last year by Hass Consult, a real estate firm, there is an oversupply of high end housing units resulting in a decline in rental income for majority of investors.
The market segment that can afford the high end houses is quite small and most of them have already purchased houses that they need, thereby leaving a lot of unoccupied units.
On the other hand, there is a growing middle class which has created a huge need for low cost affordable housing.
The price of land is very high which means a developer who want to put up low cost houses has to construct apartments instead of detached unit to maximise returns on his piece of land.
Apartment units priced at below five million are in high demand and will continue to be since the market segment that has such purchasing power is large and still growing.
Furthermore the government has introduced tax incentives for developers who are putting up 400 or more units of low cost homes in a bid to curb the housing deficit being experienced in the country.
8)Always View the Property before Buying
Before you make a real estate investment in Kenya, It is very important to go and see the land you are buying. It doesn’t matter whether it is a company doing the buying for you, make sure just before appending your signature to any agreements you already have an idea what it is that you are looking into acquiring in the long run