Investing in a house is a significant step financially. The returns on this kind of investment cannot be topped by anything else. As the housing market continues to see explosive growth, becoming a homeowner has emerged as the most efficient means of accumulating equity, saving for the long term, establishing credit, and benefiting from government tax reliefs.
Due to the perception that real estate investments would result in profitable returns, many people in Kenya choose to put their money into this sector. Land is seen as a valuable asset due to the fact that its worth increases with time, particularly as a consequence of the expansion of the human population. Land may be put to a variety of uses, including the development of real estate, the leasing of land, and the farming of crops for commercial reasons. Nevertheless, purchasing property may be a delicate procedure that calls for extreme vigilance in order to avoid falling prey to fraudulent schemes.
One has the option of dealing with either a real estate business or a private person when it comes to the acquisition of land. Using the services of a real estate business comes with a number of advantages, including the following:
While some Kenyans are experiencing more difficult-than-usual economic conditions, others are at a loss as to how to spend the money that they have available to them… because that is the way life is. Over the course of the last ten years, young people in Kenya have developed innovative strategies for generating several sources of income.
In this blog post, we are going to talk about the many advantages of owning property in Kenya, as well as its characteristics and relevant facts.
- Purchase a Pre Existing House
- Rent-to-Own Homes Where You Can Start from Scratch
- Constant and Reliable Means of Financial Support
- Considerations to Make Prior to Purchasing a Rental Property
- Conclusion
Purchase a Pre Existing House
Due to the fact that it includes direct transactions, this method is the quickest and simplest way to acquire a property. When you find a home on the market that is within your price range and meets your requirements, all that is left to do is pay for it and finish the paperwork involved in the property transfer.
When you buy a house that has already been constructed, you are going to have to put a significant amount of money into the property right away. A significant portion of your money will initially be committed to the property, but in the long run, you will end up saving a lot more money than you would have if you had chosen another path, such as getting a mortgage.
On the other hand, if you ever find yourself in need of liquid assets in the future, you may always borrow money against it. If you have strong collateral, such a home, you have the ability to bargain for lower interest rates.
Rent-to-Own System
This strategy is also familiar to some people under the name “rent to buy,” and it entails leasing a home for a certain amount of time (months or years) with the option to buy the house after the lease is up. You will have to pay a higher monthly rent, but the additional money will go toward the down payment for the property.
Rent-to-own transactions entail not one but two distinct forms of agreements.
Lease purchase agreements – When the term of your lease is over, you will be under a legal obligation to make the purchase of the home.
Leasing with the possibility to buy – When your lease is up, you will be given the choice of whether or not to purchase the property. If you decide not to purchase the property, you have the option to continue renting it or to look for another residence. You will, however, be required to forfeit the money that was put toward the down payment on the property.
Because the cost is spread out over a longer period of time and there is no interest charged, this choice is ideal for those who do not want to buy a property altogether or make substantial down payments.
Created from the Ground Up
You will be needed to purchase land and hire a team of construction professionals, including architects, engineers, plumbers, electricians, and others, to design and construct a house from the ground up if you choose this alternative.
Using this strategy, you will be able to build the home of your dreams without any problems. You have complete control over the building schedule, and you are able to keep an eye on every stage of the undertaking from the very beginning to the very end. It’s possible that you may end up saving money if you do it the right way and with caution.
Constant and Reliable Means of Financial Support
If you develop the property we spoke about before, you may be able to rent it out and make some money from it. You will be able to count on constant passive revenue if you are able to secure occupancy throughout the whole of the year, or at the very least the greater portion of it. If you manage your rental property properly, as long as it has tenants, it will not need a significant amount of maintenance, allowing you to proceed with reasonable ease.
If we could make a fast comparison here, let’s say that your rental income will generate greater returns than investing in government securities (although it will be just as secure), and it is more predictable than putting money into the stock market. It is important to keep in mind that costs that are incurred in order to make the property rentable are tax deductible.
Considerations to Make Prior to Purchasing a Rental Property
These three considerations should be taken into account regardless of whether you are purchasing serviced plots or already-developed rental homes:
The majority of renters are concerned with a home’s location, namely its proximity to important amenities such as shopping centers, malls, and reputable schools, as well as its accessibility to nearby roadways.
Protection: No one wants to live in an area where they are at risk of being attacked while out jogging early in the morning or when driving home late at night. This one will determine the success or failure of your property.
Amenities: For the contemporary house renter, it is important to have a reliable supply of water and electricity, as well as a solar supplement and feeder roads that may be used, particularly if they are considering relocating to a less urbanized and more rural section of the nation.
Conclusion
Always be sure to conduct your research before jumping into anything so you are aware of what you are putting yourself into. The acquisition of the ideal piece of real estate tips requires a significant amount of effort, from the preliminary research to the completion of any necessary legal hoops. To your good fortune, BuyNairobi excels in performing this function, and the most important choice you have right now is when to make contact with us in order to start this procedure. BuyNairobi is always ready for you to use so that you may browse homes all throughout Nairobi and make a transaction in a short amount of time.
