Experts say that procrastination is the thief of time. If you want to start real estate investment in Kenya, the best thing is to start now. You can start by researching everything about the industry and differentiate facts from rumors.
Real estate is a big investment that needs a lot of time and money to set up. This blog will help you put your dream into action by providing you with facts about real estate. In the end, everything will have been simplified, making it easier for you to start your investment as early as today.
We have a series of blog posts that will help you make the right choices when investing in real estate in Kenya. For instance, here are our recommended blog posts on all actionable tips for starting and growing a real estate business.
Facts to Know Before Real Estate Investment in Kenya
Real estate investment has made millionaires in the country. The question is, how do they overcome the fear of starting and the challenges involved?
Well, let's see that today.
1. Real estate is a big investment
It's overwhelming to think of the cost of a plot of land, leave alone the building. That's one fact you should know before starting a property investment.
Due to its expensive nature, real estate investment needs you to be prepared for anything. Having a contingency plan is good if things don't work out as you expected.
Let no one lie that you can fully depend on a mortgage loan. Actually, you need a downpayment, which is usually around 20% of the purchase price. Therefore, it's advisable to first save enough money for the down payment.
2. You should be patient
Succeeding in real estate investment is not an overnight agenda. Instead, getting good performance for your rentals can take months, if not years.
You should exercise patience for a downpayment from the first day of saving money. Remember that if you rush doing things, you will make vegetable mistakes.
Don't fall for any deal you get when searching for a property to buy. Always take your time to scrutinize the property's authenticity before committing yourself to it.
3. You cannot succeed alone
As much as you would like to cut costs when buying property, a real estate agent, attorney, and inspector are professionals not to leave behind.
A real estate agent in the area you need to buy has more experience than you have. They know the best properties in the area. In addition, they mostly know the reasons why current owners are selling their property.
You can get the best deals and a good property with a good real estate agent. They can also help you negotiate the property cost.
A real estate attorney is another professional you should onboard to your real estate investment journey. They will help you finalize all legal procedures, including ensuring that all documents are legit. The good thing about an attorney is they can help you in the future if anything about your property arises.
An inspector will assess the property to ensure it's in good condition. Of course, you can't afford to cover repairs the owner could have done. All these three personnel are a good team to ensure you get the right property.
4. Location is very important.
You can't afford to buy property in a very dormant area. If you want to invest in income property, search for properties in rapidly growing urban centers.
First, before investing in real estate, think of what you want to do because we have different types of real estate investments.
For instance, if you're going to invest in land for agriculture, you need land that has a water supply and good roads and electricity supply. On the other hand, you should buy property in urban centers if you invest in commercial property.
The Bottom Line
Starting real estate requires the right mindset and the ability to overcome any challenges that come up.
We are here to ensure you succeed in your property business. Read more tips on how to start and manage your real estate projects.
Frequently Asked Questions
Why should I invest in real estate in Kenya?
Real estate investment is one investment that guarantees you future profits. When you wait to sell your property in some coming years, it will have increased in price. In addition, you can retire early if you manage your property business well.
Is land investment in Kenya a good idea?
It all depends on what you want to do on the land. Your purpose determines where you should buy the land. With proper calculations of time and money, you can resale or develop your land at a profit.
Which type of real estate has the highest returns?
Commercial real estate leads the way in terms of profitability and returns. This is due to the high rent that tenants pay to put up businesses. However, if you are unsure about business in the area, you can try a mixed-use property that attracts commercial and residential tenants.
