The anxiety you experience when buying your first property may take you miles into making the wrong choices. However, with the right guidance, you can make the right choices to ensure you don't move from one court session to another after purchases.
This guide will show you the mistakes you will likely commit when buying your first property in Kenya. In addition, youÃ¢â¬â¢ll also learn how you can avoid those mistakes and make the right decisions.
Our main aim is to help investors like you enter the booming property market without the fear of making wrong decisions. As a result, we usually update our blog section with helpful content to help you when buying your property. In addition, we also have the best property listings where you can window-shop various properties for sale. Therefore, you don't want to miss our tips and listings, so sign up to be among the first to learn our updates.
Mistakes To Avoid During Purchase of First Property In Kenya
Choosing the wrong location
A lousy location will mean you will not get your desired return on investment if you invest in income property. For instance, donÃ¢â¬â¢t expect to get yields in areas with low population growth.
In addition, choosing the wrong location with a high crime rate will not give you peace of mind when staying.
Therefore when searching for your first property, location is critical. You should research different areas Ã¢â¬â talk to locals in those areas, look up crime statistics, and consider commute times.
You should find a neighbourhood where you feel safe and convenient for your lifestyle. Once youÃ¢â¬â¢ve narrowed your search to a few areas, start looking at specific properties.
You should pay attention to the condition of the home and the surrounding neighbourhood. If unsure about a property, get a professional home inspection to check for hidden problems. With a little bit of research, you can find the perfect first home.
Rushing to get a Mortgage Loan
Of course, you'll need a mortgage loan to buy your first property unless you have saved millions of money. However, do not rush to get a mortgage because you may fall for a loan with high-interest rates.
It's good first to research the best banks in Kenya that offer the best home loans. Once you narrow down to your desired mortgage lender, learn about their rates and other charges.
When buying your first property, it is crucial to find a good mortgage loan broker. Brokers have been in the market for a long time and can help you get the best mortgage loan from the best lender.
However, you should be keen when searching for a mortgage broker. You should ensure that the broker is licensed and registered with the Kenya Bankers Association. This step is crucial as it will help you get a reputable and experienced mortgage broker.
The broker should be willing to work with you to find the best mortgage possible. They should be willing to answer any questions and help you understand the process. In addition, they should work in your best interest. They should not recommend you to a lender where they'll get a commission whatsoever.
The broker should be willing to give you a good deal. They should also be willing to negotiate on the interest rate and terms of the mortgage loan.
Setting a high budget
One of the biggest financial mistakes is living beyond your means. That's a mistake that has cost many of their wealth and other people's wealth.
Therefore, when shopping for a home, ensure you can afford to pay for the house either in cash or through a mortgage lender. In addition, the mortgage you take should be manageable. You should ensure you can repay the home down payment and the monthly mortgage instalments without struggling.
When buying your first property, it is important to be realistic about what you can afford. A number of costs are associated with purchasing a home, including the down payment, closing costs, and ongoing costs such as maintenance and repairs. It is important to factor these costs into your budget to ensure that you can comfortably afford your new home.
Remember that if you cannot pay your monthly mortgage instalments, your lender will repossess your property, and you'll lose everything (the house and already paid funds).
Being afraid to negotiate
Paying for the pinned price is not always a good idea. Therefore, learning negotiation skills can help you big time when buying anything in Kenya.
Once a seller gives you their price, try as much as possible to negotiate, especially if it's a buyer's market.
When it comes to real estate, don't be afraid to negotiate. It's not uncommon for buyers to try to lowball sellers, and while it may not always work, it's always worth a try.
After all, you never know unless you ask. The same goes for sellers Ã¢â¬â if you're unhappy with an offer, don't hesitate to counter. Remember, the goal is to get the best deal possible, so don't be afraid to haggle.
Not using a Home Inspector
Later, after buying and settling for your property, you may notice big mistakes that you could have used to pin the seller for negotiation or renovation. If you fail to use a home inspector, it might be too late, as you'll have to bear with the damages and repair them yourself.
A home inspector can help you save a lot of money when buying your first property in Kenya. They will check for any significant repairs that need to be made and any safety hazards. This can help you avoid buying a property that needs a lot of work or is unsafe.
In addition, if you are willing to fix the repairs, it will be an excellent point to start negotiating for the property. At least you'll have the upper hand, especially if the seller is in a hurry to sell the property.
Not Paying attention to all the property details
Failure to pay attention to all details is a costly mistake when buying your first property in Kenya. With so many con artists around, it's essential to research the history of any property you wish to buy. You can contact an online title deed search to ensure you are dealing with a legitimate seller.
When buying your first property in Kenya, pay attention to the details! There are a few common mistakes that first-time buyers make, and by being aware of them, you can avoid them.
Not doing thorough market research
When you buy a property in a hurry, you will make many mistakes as a first-time buyer. That's why you should learn about the ins and outs of the property market.
It's important to research prices in the area you're interested in, as well as get a realistic idea of what kind of property you can afford. In addition, ensure the price tag matches the quality of the property you wish to purchase.
Being reluctant when closing a deal
Finally, pay attention to the contract you're signing. Ensure you understand all the terms and conditions before you put down any money. Getting a real estate attorney to ensure the contract is well put is good. In addition, they may also represent you in court to fight for your property if anything arises in the future.
Not having a contingency plan
When buying your first property in Kenya, it is crucial to have a contingency plan in place in case something goes wrong. This could include having enough money saved to cover unexpected costs or having a backup plan in case you cannot get a mortgage. A contingency plan will help you avoid financial difficulties if your plans change.
By being aware of these common mistakes, you can avoid them and have a successful first property purchase in Kenya!
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Frequently Asked Questions
What are the common mistakes that first-time property buyers make?
The common mistake of buying property is the urge to do everything so fast. This mistake can result in making a bunch of mistakes.
What are the most important factors to consider when buying a property?
The most essential factors are location, condition, and property price. With that in mind, you'll be sure to get the best property.
What should I know when buying the first property in Kenya?
Being knowledgeable is very crucial when making your first property. You should know all ins and outs of the property buying process and management.