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Property254 by Tulia Real Estate

Author: Peris Gachago

  • Top Factors to consider when buying and selling property in Kenya

    Top Factors to consider when buying and selling property in Kenya

    Real estate remains one of the most profitable ventures one can engage in.  As an investor, buying real property is usually a sure way of making a healthy profit. As real estate is capital intensive, you want to make sure that you get maximum return on investment. While real estate is a relatively risk-free investment, there are several factors you must take into consideration when making a real estate investment:

    Supply and demand

    Economic environment

    Interest rates

    Government policies

    Societal and demographic factors

    Technology Environment

    Purchase conditions

    Supply and Demand

    Real estate markets can be classified as either a seller or a buyer market. A seller market has less properties being listed for sale. When supply is low, the demand for the limited properties goes up and the prices of the properties increase as well. Sellers receive several offers for their property and may sell beyond their original asking prices. While this may not apply to the whole country, you may have several areas being sellers market while others will be a buyers market.

    When the demand for properties for sale is low relative to the supply, then this is a sellers market. People looking for properties for sale are choosers amongst several competing options. Prices are usually low.

    In Kenya, property prices have been rising steadily. This has made it difficult for most people to purchase their ideal real estate properties. First time buyers are the most affected.

    Economic Environment.

    The returns you would make in real estate are correlated to the existing and anticipated performance of the economy. If the economy is performing well, the returns from the sale of properties is high as well. When the economy is performing poorly, selling returns less profit while it’s the right time to buy property. Buying property when the economy is trending downward increases the chance of making higher returns when the economy returns on an eventual upward trajectory. The economy usually has 4 phases:

    Recovery:  This is when the economic factors are starting to improve. This is an ideal time to purchase property as prices have not started rising and are most likely low. This is the wrong time to see as you will be unable to enjoy future price rises.

    Expansion: This phase is characterized by expansion in the economy leading to increase in demand. Jobs in the economy start to rise and prices of property increase. Rental prices increase as well with increased employment levels. You could still find undervalued property that you may sell later for a profit. Depending on when you bought a property, you can still sell and make a good return and have enough money to buy another property before prices increase further.

    Peak:  This stage has the economy performing optimally. This phase has property prices increasing and rental occupancy at an all-time high. This is the best time to sell unless you anticipate continued rise in prices. This stage is the highest the economy can get. At times, most people anticipate that a slump will come soon and start disposing property. Having more property in the market drives demand down due to oversupply and prices start going down. You can sell a property if you feel there is no chance of prices rising higher. As recessions may affect different real estate market segments differently, review how the market you are in is performing. Low end housing usually rides recessions.

    Slump/recession: Once the economy reaches the peak, an eventual decline starts. There is unemployment in the market and people are unable to afford rents leading to vacancies. Sales of property drops. This is the best time to buy property while it’s the least favorable time to sell.

    Interest Rates

    When one depends on either a bank loan or a mortgage to buy a house, the interest rate will have a big bearing of the real estate market. When one incurs high interest rates to buy a rental property, the return on income goes down and the appeal for property investment goes down. Higher interest rate usually makes most property un-achievable for most of middle income earners. High interest rates lead to a spiral of rise in construction materials which reduces the amount of construction. When interest rates are low, the real estate market flourishes as there will be higher liquidity.  When interest rates are low, financing is less expensive, and purchases of property goes up.

    Government Policies

    Government is one of the key drivers of real estate transactions. All land is government owned and the government is also responsible for handling transfer processes and setting up policies governing sale and purchase of properties.

    The government can offer incentives to accelerate real estate industry. For instance, the government can provide credit that allows more people to afford property and thus drive prices upwards. The government can also be a direct investor in real estate. The Konza city is an example of the Kenyan government directly impacting real estate growth. We have witnessed government issuing title deeds for land which assists in the title deed holders being able to sell the property.

    Through infrastructural development like roads, sewer, electricity connections, the government can make a hitherto underdeveloped area a prime area for real estate growth. Changes in taxation can either enhance to decrease investor appetite. If for instance the government raises the capital gains tax, less people would be willing to sell property while fewer people will afford the resultant property prices. If the government allows higher mortgage relief, this may lead to an increased uptake.

    Societal Influences and Demographics

    The way societies evolve, this affects real estate as well. When people increasingly have fewer children, there is less demand for large houses while there will be higher demand for 2 or three bedroomed houses. As more millennials take longer to step out of their parent’s houses, there is lesser rental pressure in the market as more people continue to live under the same roof. There has been an increase in people’s preference to rent rather than buy. Millennials are very mobile, and they do not feel the pressure to settle down in one location. When demand for rentals increase, rental incomes go up while selling prices for residential properties go down. Selling prices for rental properties increase due to increased demand.

    Demographics within a population have a significant effect on real estate prices. For instance, baby boomers preferred bigger houses while millennials prefer smaller houses. Millennials also want different factors like shopping malls, nightlife and schools for their children which is different than the silent generation that just want a safe and quiet neighborhood. Millennials are more tech savvy and rely on the internet when searching for property.

    Technology

    Technology has changed real estate for the better. You can view profiles of agents and have photos of potential properties for sale without doing a physical visit. With the government rolling out online property search, this will further enhance property transactions.

    We have rolled out a map-based search feature that allows you to search for property on a map. This provides you an ability to compare prices with properties within a similar range to arrive at a better value for your money.  Before making any purchase, consider how you can leverage technology to make a more informed decision.

    Purchase Terms

    While the all the terms above are beyond your control, you have a chance to determine the terms within which you can either sell or buy property. We have seen innovative products like 105% financing which eases the usual 10% deposit that lenders usually ask.

    There are several properties that you can purchase through installments that eases the pressure for purchasers who only need to raise a deposit. There are many properties being sold off plan and you make payment as construction progresses. There are also rent to own schemes being offered. With these flexibilities, buyers and sellers can negotiate and see what works best to ensure sale and purchase of properties continue irrespective of the other factors mentioned above.

    Summary

    When buying and selling property in Kenya, proper planning, research and patience are your best friends. Patience helps so that you don’t end with a poorly made investment decision. Start off with realistic expectations. Keep your projected income at a reasonable level. Also, seek property within your price range. We remain open to supporting you throughout the process and you can always contact us for a free consultation.

    If you feel there is a factor we have missed, let us know in the comments below.

  • Ultimate guide to hiring a real estate agent in Kenya

    Ultimate guide to hiring a real estate agent in Kenya

    Whether it’s the purchase of land or purchase of a house, good real estate agent will help you on various aspects from setting the right price, negotiating, conducting any searches needed, transferring title and can help you save time and money. Purchase or sale of real estate property will have a big impact on your life and finances and finding the right real estate agent to guide you through the is very important.

    Without knowledge of a good real estate agent, finding a good one can be as easy as finding a needle in a haystack. We have summarized tips below for you to guide you in the process of selecting a good real estate agent

    1.      Seek referrals from family and friends.

    2.      Review the agents experience.

    3.      Assess the agents core values.

    4.      Review potential conflict of interest.

    5.      Check for chemistry.

    Seek referrals from family and friends.

    To reduce the risk of getting a raw deal when buying or selling property, seek referrals from family and friends. Family and friends who have purchased properties before or made property sales can point you to a good real estate agent. Getting referrals saves you time that you would have spent researching. This helps to ensure you stand a high chance of also getting a positive working experience with the agent. You should particularly seek agents who went above and beyond in service of their clients. While technology has helped with listing sites being easily available, getting a trusted real estate agent needs a human interaction. Thus, getting a referral from someone you already trust helps.

    If you do not have any family or friends to provide you with referrals, we have in our website provided you with agent ratings. This helps you assess the agent performance from other clients.

    Review the agents experience

    Top real estate agents have un pararelled understanding of the market both on a macro and micro level. A good real estate agent should answer any specific questions and if not, should know someone who can. The agent should understand new developments that have come up, price ranges, other agents and information about the neighborhood you are interested in.  The agent should offer you information about a neighborhood like schools and other social developments. When getting the answers from the agent, do a little research and compare the answers you get.

    While newer agents may be talented and with a greater drive, experience gained from knowledge about the transaction processes is invaluable. Most challenges during purchase take place on the process and a good agent should know the process of transferring property. An experienced agent usually has a larger network meaning they seek information about property for sale from a wider network.

    Review the other listings they have and any past sales that you can verify. If they have data on previous sales, then it makes them a credible real estate agent. We have in our website provided you with a way to check the existing and previous sales to make this easier for you.

    Nowadays, the build of real estate transactions starts online. The internet has brought numerous opportunities and your agent should exploit this to get you a good price for your listed property or find a reasonably priced property for you to buy. Most agents nowadays have a website or Facebook page which they can use to market or look for property. Check the agents interactions with other people on social media for an assessment of how tech savvy they are.

     Assess the agents core values

    As the current industry has been infiltrated by unscrupulous agents, it’s important to assess the values that the agent has so that they are playing within the rules that are laid down for real estate transactions. First impressions matter. When you meet or talk with the agent for the first time, look at how they dress, their passion for the work and the level of honesty.  Consider in your research if the agent is consistent in explaining why a property is listed for sale, the seller or buyer flexibility on price and the way they are explaining the process.

    Beware of any agent who hurries you to make payment on the property or who is not upfront with property details. They could be hiding something.

    Review conflicts of interest

    Your real estate agent needs to provide you with options that meet your specifications and budget. If they are consistently not doing this, they may be looking out for themselves of the other seller/purchaser.   While you may have provided an agent with a tight budget to work within, the agent needs to be patient with you and any circumstances you may be facing. It’s always good to follow your gut feeling.  If you find the agent is pushing you towards different parameters of price and neighborhoods than you originally agreed on, it may be time to reconsider. If you feel the real estate agent you are currently using is not the right person, they probably are not.

    A good agent needs to communicate well with you. They should keep you updated on properties available that have come up for sale, or customer enquiries on your listed properties.

    Many realtors get in the bad habit of cultivating radio silence, and essentially cutting clients out of the loop as they go about making important marketing decisions on their own. A good agent should ensure you have all the details you need at your fingertips, advise and involve you in every step. Be wary of agents that act as both the seller and buys agent. These agents at time coach both sides and the transactions may not be as efficient as could be.

    Ensure you have chemistry with the agent

    You will be spending a lot of time and having numerous conversation with your agent. For the process to be easy, the relationship with the agent needs to be right that is pegged on having a good connection.  While having local knowledge and having the experience is a great plus, the chosen real estate agent should guide you through the process in a manner that allows you maximum decision making through out the process.  Getting a real estate agent is like dating. If you don’t feel the chemistry on a personal level, the earlier you end it the better before it leads to a bad marriage.

    A good agent should listen and understand your needs from the kind of property you want to purchase or sell, your budget and the timelines you are working on.

    When speaking with an agent, gauge the conversation and see if you clicking. As you are investing a substantial milestone, ensure that the agent has your best interests at heart. Check if your agent works part or full time. This will help you gauge how committed they will be to selling your property or seeking purchase alternatives for you. Full time agents are usually flexible on the time they can take you to view a property or to take potential purchasers to view your property. If you feel the timing and flexibility does not meet your needs, then getting another agent is a good idea.

    Conclusion:

    Getting the right real estate agent makes a big difference during a real estate transaction. We hope the above guide helps you get an agent that really supports you and helps you to make a great, well-informed selection. If you are unable to find a good fit, do not hesitate to let us know and we shall link you up. Also, let us know in the comments below anything we missed.

  • The complete guide on how to take Real Estate photos

    The complete guide on how to take Real Estate photos

    In today’s online world, your property photos are your first impression encourage a buyer to come see your listing in person. Its estimated that 77% of buyers start their search for property online. Additionally, buyers increasingly explain that viewing professional photos is extremely to their buying experience. This means a large determination of whether a customer will call you back is the photos and the price of your property. While no two properties are identical, there are common areas every listing should cover. Good photos are not only essential for online listing platforms, but they are key when developing flyers, Facebook posts and even when the same is shared across networks through forums like WhatsApp.

    We estimate that at least six photos as the minimum needed when offering land for sale. 22 to 27 pictures is the ideal range of photos for houses for sale  according to Zillow research. We estimate that land listed for sale with fewer than six photos will be about 20 percent less likely to sell.

    Walk through the property before taking photos

    Each property is different from the last. Before you start taking photos, walk through the property to help you determine the number and placement of the photos. As you walk around, remove any threatening signs like Do not trespass, Usikojoe hapa etc. The goal is to create a welcoming feeling with your listing photos. As you walk around, you will start to identify the best angles and any items that need to be removed. Some items that we don’t notice will stand out in a photo. If you want some decorative items, leave 1-3 items.

    Exterior Photography for properties for sale

    An exterior photo is usually the first image a potential buyer sees when reviewing properties online. That photo is important so ensure you get the right angle and determine the important features to highlight. Capture Popular local features or any features that justify the price. Take photos that make the area popular. If the property is next to other developed properties, make sure you capture this. If there is a river, ensure this is captured as well. Other features that add value include capturing roads (murram /tarmac), neighboring schools, police stations

    When taking exterior photos, it is best to capture images when the sun is behind the camera but illuminating the front of the property. You’ll avoid shadows and the house will be perfectly lit. For apartments and houses listed for sale, a night-time exterior shot can create the right amount of contrast to make your photos stand out.

    Interior photography for properties for sale

    Whether you are taking photos of apartments for sale, penthouses or villas for sale, the most important photos are the interior ones.  For a house the typical photos should cover a photo of every room (living room, kitchen, dining area, master bedroom, library, office) including bathrooms and photos of the front yard and backyard that was described above. There should photos that capture each feature such as laundry room, garage, and pantry.

    Before taking any photos, ensure the house has been cleaned and there is no debris around. Additionally, take away small items that could be lying around like toothbrushes and combs, electrical cords or wires, TV remotes etc.

    Step Guide to Getting Started in Real Estate Drone Photography

    We recommend having the lights on when taking photos of houses for sale. Having the lights on makes the rooms warmer and it feels more welcoming. You will however need to make sure that the lights do not distort the color of the house, so make sure that you adjust white balance when post-processing.

     While having the lights on is the rule of thumb, experiment and see what works best. At times, for houses with large windows, opening the windows may provide enough natural light which works just as well as having the lights on. Additionally, natural light is a big seller.  You may also opt to use camera flash if you notice that the light bulbs in the house have different color temperatures.

    Whatever decision you make, be consistent throughout the photos!

    As you take the photos, ensure that there are no people captured within the photos, including you. While mirrors in a house is be a selling point, you want potential buyers to picture themselves in the mirror not you.

    Capture features that help your listing stand out. Some of these include bathtubs, solar panels etc. If the view is one of your property’s selling points, make sure you show it off. Find a way to capture it with a part of the house in the shot, like the balcony. That way, buyers can picture themselves there.

    Tips for shooting great real estate photos

     Portray an honest representation of the property. If there are any items not working, show them as well. If the land being offered for sale is next to a slum, do not surprise a customer during a visit. Capture that as well. If the house needs remodeling in certain rooms, capture the same and the customer will decide before visiting if they are up for it.

    Take tons of photos: even though you will not need every photo for your online listing, take many more than that, so you can pick the very best images in editing. The additional photos come in handy if a customer asks for more, you will not need to go back to the property to take them.

    Use landscape orientation: Horizontal orientation makes it easier to capture full breath of the properties.

    Take photos that highlight the layout: Buyers are interested in the layout of the property.

    Leave doors open between rooms: This provides buyers with an idea of how different rooms connect.

    Conclusion

    Good photographs remain important for your listing. As the adage goes, a photo is worth a thousand words. However, don’t obsess over this. You don’t need a lot to achieve beautiful real estate pictures. Nowadays, most phones have good cameras that can work in taking professional photos. If you decide to hire a photographer, ensure they have a good resume and an impressive work done in the past. This ensures you will not be disappointed.

  • Best Places to Invest in Real Estate in Nairobi Kenya

    Best Places to Invest in Real Estate in Nairobi Kenya

    Investment in real estate is not just a mere investment, rather it is about all the accumulation of assets that can be appreciative, in terms of security and profits. Having noted that, it is a whole decision to invest in real estate industry in Kenya and this equits to the choice of the place you do it. Depending on your purpose of investment, it is easier to look for a prime part of investment or somewhere with ability to grow and be productive in your estimation of your future. As discussed in our previous blogs, location is paramount in the industry and will determine a lot your direction of investment.  There are areas that are grown in Kenya and others have the potential of growing too. Here are some of the places that would see you reap up to double profits in Nairobi, Kenya.  They are among the fastest growing places in reference to property market. They are well eye catching places for developers and there before hot spots for real estate investors, both new investors and already experienced investors. 

     Nairobi Suburbs

    Areas surrounding Nairobi have been fast growing in relation to real estate industry. Land availability as well as reasonable prices have been the deal of the day in such places. Accessibility to utilities and other services are also represented in such areas. People settle in these places and go to work in town. It is easier to commute daily and their type of housing and accommodate their families too. Such places include; Juja, Ruiru, Kitngela, Syokimau,  Kikuyu and Kiserian. Evidence by hassconsult has shown that it is way better in investment of property in such areas than investment towards treasury bills and bonds. These areas had an influx of developers. In addition to having access to amenities, they are also areas with security services which even makes it easier for people to settle. Some of the purposes of buying land and property in such areas include: buying to settle, buying to hold up for a few months then resale, buying to build and rent out. It should be notable to those who buy to rent out that there is consideration of transportation means and costs for their clients because it is hard to construct with the notion of everyone will drive to work.

    Housing is one of the basic human needs. Areas in Nairobi suburbs serve as perfect examples of where to start up life especially for the young youths who are starting up their career path (Cytonn). Such areas are characterized by tall apartments, high population and minimum zoning regulations.  This therefore involves attracting many investors as they would like to house such population. 

    In conclusion, regardless of how the prime an area is, it is important to note that these are some of the minimal factors to consider while entering into property market;

    How easy is it to commute from your area of work to your area you reside?

    How will future expansion affect your living? (In case of any adjustments)

    Is it a secure place?

    How far are social amenities to you?

    If these areas go well with you, that would be an ideal place for your living.

  • Real Estate Marketing Ideas Guaranteed to Bring in Qualified Buyers

    Real Estate Marketing Ideas Guaranteed to Bring in Qualified Buyers

    Real estate business is one of the most profitable ventures available. Due to this, the real estate field has become very crowded with more people joining the industry. To come out on top, you have to be smarter and use as many marketing avenues as possible to get clients.

    The ability to find qualified buyers will always be important in any business. Wondering how to sell your property? We have summarized 15 ideas that will help you sell your property fast.

    1. Master your niche.

    In an industry filled with a high level of mistrust, start by becoming an expert to help you stand out. You will command authority when you’re an expert. This way, you will start attracting buyers without the need to sell yourself. Learn and understand the process of buying and selling properties. To become an expert, learn more about taxation in real estate.

    Do your best to understand the price movements of property within your primary areas. Get to know of new developments coming up and alert your customers to take advantage of the same. The above will help you stand out in a competitive industry and customers will trust you.

    2. List your property with listing websites.

    Over 90% of customers in urban areas start their property search online. If you are not online, you are missing out. Have your properties listed on the leading listing websites. Here is a list of 7 real estate listing websites in Kenya that includes websites you can use at no cost.

    3. Put a classified ad in a newspaper.

    This is an old-school tactic that still works. If you have a budget, this is a terrific way to market your real estate. this is because newspapers put you in front of hundreds of prospective users. this way, you do not have to wait until you build up a big profile.

    Most buyers trust newspaper adverts and may take them as evidence of a stable company.

     4. Put a ‘for sale’ sign on the property.

     I am sure you have seen these signs, or you have used one yourself. Some clients like to visit a location and use these signs to look for property. I once took a client to see a property that I had for sale in Kamakis. As we went to the property, I could see the client writing numbers down that were on the sign boards. I am sure the intention was to use the numbers later.

    5. Have your own real estate website.

    Websites remain a growing area that customers look for. A good website helps you in building trust with customers. It also gives you your platform where you can list unlimited properties. With your website, you can showcase previous projects as well. This may not be possible with most listing websites. Make sure the website is fast and works on mobile devices.

     If do not have and need a website, give us a call on 0726982982. We will provide you with a website within weeks and get you online.

     6. Use social media.

     One of the best real estate marketing strategies is becoming an expert on the use of social media. There exists so many social media platforms, so feel free to choose what works best for you.

     Facebook remains one of the best platforms to post your property. You can do this by posting n your page, posting on Facebook groups or using the Facebook Marketplace. If you can, try out a Facebook ad campaign.

     Instagram is a good platform as it helps you post stunning photos. Stylish photos help to show your property in the best way. Instagram stories allow you to show your properties and updates to your followers. LinkedIn allows you to network with fellow realtors. You can post useful articles on LinkedIn to help build trust and show your expertise.

    Be sure to join WhatsApp groups where real estate agents post their properties and do the same as well.

    7. Distribute Flyers.

    In Nairobi, I have seen people handing these out listing their properties for sale. This has been on busy roads during periods of heavy traffic. Remember to pay local city council fees and get the flyers stamped. You can also partner with other businesses and put up your flyers on their business premise.

    8. Join  Real Estate  forums.

    There will most likely be two real estate agents in every transaction. One representing the buyer and one representing a seller. Join real estate forums to expand your network which could be one of the best sources of leads.

    9. Conduct real estate video marketing.

    Some real estate agents have started using videos to showcase their listings. Videos have become more popular as it gives buyers the chance to see inside the house. This feeling is the same if the buyer visits the house. By posting videos, you save time on buyers who would have visited and not liked the house.

    You can then upload these videos on Youtube. Additionally, feel free to post the same on your social media pages.

    10. Use Social Media Influencers.

    Content creators have a wider reach on social media and can spread your message to more people. Furthermore, people have a certain level of trust in these already established influencers. By using the influencers, you can capitalize on this to maximize your brand awareness.

    11. Reach Out to Local Radio and Television Stations

    If you have good connections, use them to get featured on local radio and TV stations as an expert. You can then use this to market your properties. If you have an advertising budget, radio and TV stations are a great way to reach a large audience. Most listeners trust the presenters and lay a lot of trust in any advertisements that they run.

    12. Build a Profile on Property254

    Premier Agent website is one of the leading real estate listing websites in Kenya. Also allowing you to post your property for free, you get to receive top property advice. Tips from this website will help you when either selling or buying real estate. More buyers are also relying on this website due to their map-based real estate search.

     So, go ahead and create a profile by logging in here. With a free profile, start listing your properties. An advantage of this website is that you can list properties you already sold and mark them as sold. This allows you to showcase previous projects. Once you create a profile, you can ask for reviews from your previous clients.

    13. Setup a Local Business Page on Google

    It’s advisable to set up a business page on Google for your real estate business. If you can, target the right keywords on your business page as well. For example, you can use Properties for sale in Nairobi or properties for sale in Ruiru to  target the people who are looking to buy properties in these two towns.

    To set up a local business page on Google, go to google.com/business . on this website enter your business’s information, starting with location. Once completed, you can ask for reviews on Google from your past clients or friends.

    14. Order unique business cards that stand out. 

    Business cards will never go out of style. There will always be meetings with buyers, sellers, and other industry professionals. It is good to have your information on hand to share with them. Business cards should have your name and the name of your business. Also, include your website and contact details. Use good color and fonts to stand out.

    15. Create a referral system

    As you try to find new clients, don’t forget about getting referrals from happy clients. 41% of sellers using a real estate agent found that agent through a referral from friends or family. If you’re not asking for referrals, you should be.

    One of the easiest ways to get referrals is to ask. Provide your prospects with simple and seamless services during the process of buying and selling real estate. Once you conclude the deal, ask the client if they have any friends they can recommend you to. Happy past clients are your best brand ambassadors.

     Summary:

    Getting customers is not a walk in the park. It takes patience and hard work. While the above ideas are sure ways to sell your property, do not try to do everything on the list at once. Your initial goal should be to start somewhere and grow over time. Start with a few strategies to test and see over time what brings the best results for you.

    If you do not have enough time, consider hiring a real estate marketer.

  • Unconventional Ways to Find Real Estate Clients

    Unconventional Ways to Find Real Estate Clients

    Building a list of new real estate clients can be difficult for any new real estate agent. While technology has helped to modernize the real estate industry to some extent, it is still a very person-to-person business where you must build relationships and earn your clients’ trust in order to become well-known locally. There are some unconventional ways to get your message across and attract potential buyers and sellers. If you’re just getting started, here are points to consider if you want to find real estate clients.

    1.     Create a strong online presence

    2.     Go beyond the local market

    3.     Stay connected with your past clients.

    4.     Find your real estate niche

    5.     Network within the industry

    6.     Offer additional services.

    1.   Create a strong online presence

    Most people nowadays search for properties online. The idea is to go where the client goes when looking for a property. If people are looking for properties on the internet, you should try to appear in their search results. Nowadays, finding the terms people use to search for a specific type of information is simple. You can get not only the exact searched words, but also the number of times those terms are searched on daily basis.

    Producing high-quality content improves your reputation by demonstrating your expertise and persuading potential clients that you know what you’re talking about. To provide useful information to both buyers and sellers, consider starting a business blog or a YouTube channel.

    2.   Go beyond the local market

    Naturally, settling yourself in a new location will take time, and you will need to put in the required hours on a daily basis. Investing a small amount of time in online research will provide you with a more comprehensive picture of the market and the options available to you. You can not only find interesting properties, but you can also have them inspected without having to go there. Getting in touch with your neighbours who are in property market is also a good way to learn more about the area. If everything goes well, you can start thinking about selling your property.

    3.   Stay connected with your past clients.

    Make sure you stay in touch with your clients once you’ve garnered attention with them and have a few names on your client list. The goal is to turn them into repeat customers or leads. Let the first person comes from a client’s mind when they need to refer someone to a real estate agent be you. When it comes to retargeting your real estate clients, email marketing software will save you time. You can schedule emails in advance and send them to everyone on your mailing list using this software. However, you should be more cautious when it comes to how you send your emails to clients. If you don’t want to end up in your clients’ spam folders, less message is more important when it comes to email marketing. The information you provide can be anything from real estate concepts to announcements about new developments in the area.

    4.   Find your real estate niche

    Figuring out a niche is a good idea for any real estate firm. Real estate clients with unique requirements or characteristics will prefer a specialist. For real estate agents in cities and other areas where competition is fierce, this type of specialization may be very important. Concentrate on a single type of property, a single location, and a single type of customer (sellers, buyers, landlords, people looking for properties as an investment vs living) and budgeting (high-end properties, economical properties).

    Unlocking Powerful Tactics to Boost Real Estate Referrals and Expand Your Network”

    Real estate agents can tailor their communication strategies to their target market as a result of their specialization. This may even have an impact on the name of your company, making you appear to be an expert in that field). Because you will automatically be the expert in this field, your communication will be richer and more honest. Personal recommendations will become more valuable and likely as a result of your unique expertise.

    5.   Network within the industry

    Although you may consider other real estate agents to be competitors, networking with them and other real estate professionals can help you advance your career. Make it a point to network with other industry professionals, such as home inspectors, real estate attorneys, mortgage inspectors, and contractors who frequently work on home renovations, as they may be able to refer you to clients in need of a real estate agent.

    Also read: Networking tips for Real Estate Agents in Kenya.

    6.   Offer additional services

    Providing complimentary additional services for instance providing a lawyer, a surveyor for your real estate clients is one of the best ways to make yourself stand out in the market as the real estate agent to choose. Everyone appreciates a good deal, and if you can make your clients’ lives easier when buying a property, you’ll be remembered for it and they will recommend other clients to you.

    Bottom Line

    In the real estate industry, there are an infinite number of potential client-attraction strategies, but you must decide which ones are best for you and your company. Although lead generation does not happen overnight, combining numerous prospecting strategies, such as those outlined above, and using them regularly to your real estate firm can bring you clients and success.

  • Top Ten areas to buy cheap Land in Kenya for high returns

    Top Ten areas to buy cheap Land in Kenya for high returns

    Land prices in Kenya have risen dramatically in recent years, with some prime areas reaching all-time highs of Ksh1 billion per acre. Given the growing population and demand for land to build residential and commercial properties, this trend is expected to continue for a few years.

    This article will assist you in determining where you can purchase land for residential development, agricultural development, or simply to purchase and save it for future use or sale, an investment in this case at most affordable price.

    We shall also be listing the cheapest places to buy land in Kenya.

    1.     Juja Farm.

    Juja Farm is in Kiambu county located 15 kilometers from Juja town which is 10 minutes’ drive and 34 kilometers from Nairobi Cbd.

    Juja Farm is one of the fastest growing in the Nairobi Metropolitan Area. It has increased interest of many people who look to invest in that area.

    The demand for Juja farm plots has increased, due to the tarmacking of the Juja farm road. A 50 by 100 Plot cost approximately ksh.500,000 to 1 million depending with location.

    Juja Farm is the best to invest your money for residential and commercial properties. What you need is find a genuine real estate agents.

    2.     Kitengela

    Kitengela has long been a real estate hotspot. It is located in Machakos county 37 kilometers from the Nairobi cbd. The town is rapidly growing, opening up opportunities for potential landowners.

    The cost of land in the area varies depending on its proximity to the town, with the most affordable plots for instance 50 by 100 plot costing around Ksh. 2 million.

    Kitengela is a self-sufficient town that is ideal for families. Major supermarkets, a vibrant nightlife, and children’s and family-friendly activities are just a few of the town’s many attractions.

    3.     Kangundo road-Joska, Kamulu

    Kangundo road is in Machakos county and is 45 minutes drive from Nairobi cbd. The area is a popular real estate investment zone due to its location and plots are very affordable. The area now has better public transportation, and new businesses have opened along the way. Kangundo Road has quickly become a favorite destination for most city dwellers.

    Infrastructure improvements has been a major benefit to Kangundo Road. A dual carriageway has already been established on the road. The area also has excellent amenities such as hospitals, schools, and shopping malls. The area has seen unprecedented growth as a result of investors constructing housing projects. Because of the construction of the by-passes, the area has become more accessible to residents working in neighboring counties.

     Kamulu is one of the best places to build a home in Kenya. 50×100 plots in Kamulu town, next to the tarmac, are available for Ksh1.1 million by Fanaka real estate among others.These plots are completely serviced, come with ready-to-move-in title documents, and are equipped with all modern conveniences. Due to the impending development of Kangundo Road to a dual carriageway, land values in Kamulu are expected to skyrocket.

    4.     Ngong

    Ngong is about 30 kilometers from Nairobi’s central business district and boarders Karen. The reason why you should invest in Ngong is because of the Standard Gauge Railway, as well as the construction of the Ngong SGR station, the extension of Ngong Road from Nairobi has significantly reduced commute times to and from the CBD,The tarmacing of the Ngong-Kibiko subway road has also improved the residential and commercial profile of the area.

    In Ngong, Kimuka and Isinya remain some of the most affordable places to buy land.  50×100 Plot prices range between Kshs.250,000 Kshs.350,000 in most cases but can go very high if the plot is located close to the roaad or a shopping center.

    5.     Eastern Bypass

    The Nairobi Eastern Bypass highway’s construction has resulted in massive real estate development in the surrounding areas. The highway has increased property appeal by improving connectivity in previously sparsely populated areas.

    Ruiru is the fast-growing city to invest your money. Development of Tatu city, Kenyatta university, and Brookside Dairy has made this place good for residential and commercial investments.

     A 50 by 100 plot that were selling for shs.500,000-shs.700,0000 in Kona three years ago are now selling for more than double that. This is due to the tremendous developments coming up in the surrounding areas.

    In Kamakis, residential plots around 2Kms from the road have more than doubled in price to sell at an average of 3 million for residential plots.

    6.     Tinga

     If you looking for plots for sale with ready title deeds in Kenya near Nairobi CBD with prices below Ksh 200,000, Tinga town offers exactly that. Tinga town is located a distance of an hour’s drive from Nairobi CBD along Magadi road which is set to be expanded.  The town is after Ongata Rongai and Kiserian towns and the area enjoys modest schools, hospitals, police station, water and electricity among other social amenities.

    The greater southern bypass is set to open the area even more in the near future

    7.     Nanyuki

    Nanyuki is located in Laikipia county. It has Ranches, conservancies, and pastureland which have long dominated the landscape. Investors are transforming this into a real estate market and vacation destination.

    The town benefits from its diverse hospitality. Because of the high demand, Nanyuki has attracted housing developments that will provide a home in Nairobi’s affluent suburbs.

    Many real estate companies have set foot in and around Nanyuki, bought slightly bigger parcels and subdivided them into smaller eighth of acre portion which the local middle and low population could afford. For instance Nanyuki Properties sell eight acre plots at approximately ksh. 500,000 which are affordable and located in various places around Juakali, Ereri, Endana etc.

    Read more: why you should invest in Nanyuki

     8.     Matuu

     Matuu is a growing town located in Machakos County. It is midway between Nairobi/ Kitui en route to Garissa. The town has experienced rapid growth in real estate investments in recent years. It has now become one of the largest urban centres in Machakos County. It has become an economic hub of the surrounding constituencies and a key transit centre to Nairobi, Thika and parts of Central and Eastern Kenya.

    If you are looking for plots for sale in Kenya with prices below Ksh 200,000, Matuu is the place to invest in

    9.     Kikuyu

    Due to expansion of Waiyaki way and the Southern Bypass, Kikuyu has emerged as a real estate hotspot in Kenya. The proximity to Nairobi CBD and amenities such as good schools, and hospitals have played a very big role in making kikuyu to be more attractive.

    Places to consider buying land in Kikuyu include Limuru, Kabete, ondiri and Kinoo areas. he average price of land for sale in Kikuyu, Kiambu is KSh 3,200,000 per plot. The most expensive land costs KSh 9,500,000 per plot depending on location.

    10.  Malindi

    Malindi and Watamu villages are known for their wonderfull Indian Ocean beaches, which are among the best and most picturesque in Kenya. The average price of land for sale in Malindi Town, Kilifi is KSh 150,000 per plot.

    20 reasons to invest in Kilifi and Malindi

    Finally,

    If you are operating under a low budget do not lose hope of being a land owner. There are other upcoming towns that can be considered as the cheapest places to buy land in Kenya. These are the areas you can add to your shopping list:Malindi, Konza and Nakuru.

    Despite the fact that property prices in various areas are rising, the properties are still affordable in the long run. Investing in these areas could be the best investment decision you ever make in the coming years. There are 1000 Real Estate Agents  in our website  who can help you buy land in any of these locations.

    General Questions About Land

    • How much does land cost in Kenya?
      • Land prices vary significantly based on location, size, and amenities. Generally, land in urban areas is more expensive than rural areas.
    • Where can I buy cheap land in Kenya?
      • Areas outside major cities often offer more affordable land options. Consider locations like upcountry regions or emerging towns.
    • What is the best place to buy land in Kenya?
      • The best place depends on your personal goals. If you’re looking for investment, urban areas might be suitable. For agricultural purposes, rural areas offer more options.
    • How do I search for land for sale in Kenya?
      • You can search online through real estate websites, newspapers, or by contacting local agents.
    • What are the steps involved in buying land in Kenya?
      • The process typically involves finding the land, conducting due diligence, making an offer, signing a sale agreement, and completing the transfer.
    • Do I need a lawyer when buying land in Kenya?
      • It’s highly recommended to have a lawyer to guide you through the legal process and protect your interests.
    • What documents are required to buy land in Kenya?
      • Required documents usually include identification, proof of income, and any other documents specified by the seller or the land registrar.
    • What are the different types of land available in Kenya?
      • Land types include residential, commercial, agricultural, and industrial.
    • What is a 50 by 100 plot in acres?
      • A 50 by 100 plot is approximately 0.125 acres.
    • What are the risks of buying land in Kenya?
      • Risks include land disputes, fraudulent deals, and changes in land use regulations.
  • SEO for real estate –Seven Tips on how to Improve Your Real Estate Websites

    SEO for real estate –Seven Tips on how to Improve Your Real Estate Websites

    Any real estate agent’s dream is to generate quality local leads and sales. They want to meet with eligible clients and increase their sales but how will they go about it? In today’s era majority of people who want to purchase a real estate property go online to do so. The best thing about Real estate SEO never rests, it ensures possible leads 24 hours a day, seven days a week, without the need to pay ads or make phone calls.

    What is Real Estate SEO?

    Real estate SEO (Search Engine Optimization) refers to website development content and strategies that make your content and website easily accessible online. These tactics turns your website into a legitimate and reliable real estate website, giving you more customer traffic and better search engines rankings.

    Why does Real Estate need SEO?

    As more and more real estate agents invest in SEO, online visibility is critical to the success of their businesses as it;

    ·        Increase traffic and revenue

    Strong SEO strategy that includes high-quality content not only increase your traffic, but it also attracts more relevant audiences and a higher chance of being a customer when you publish relevant content and keywords. Using the right conversion rate, the traffic can be converted into new revenue.

    ·        Boost brand awareness

    Additionally, high quality SEO content establishes your company as a source of information, which helps your viewers trust you. When someone reads your content and finds value in it, you interact well with your product, which raises product awareness. Improved brand awareness raises conversion rates even further.

    Below are tips to improve your real estate websites that will lead to sales

    1.   Start with SEO Audit

    SEO audit helps determine which pages work best and where you can improve. Although research takes time, it serves as a tracker of your progress and gives you with the data you need to develop a roadmap.

    If you have no organic traffic to your site or you don’t generate leads or covert clients, there must be a reason for this. Don’t worry about it, SEO audit can help you.

    Important areas to focus on are:

    •     Site Layout: XML Sitemap, robots.txt, redirect.
    •     Page Layout: Topics, meta descriptions, title tags, alt tags, URLs.
    •     Content: Structure, keywords, visual features, duplicates, redirects, and canonical tags.
    •    Links: internal and external links
    •    Usability: Accessibility, mobile friendliness.

    With the results of your audit, make a plan for each problem. An orderly approach is best, to make sure you do not ignore anything. After fixing the problem, find other ways to improve the overall optimization.

    Focus on the following:

    3.   Make Sure Your Website Is Accessible

    Accessibility is part of a design process that focuses on user information, making websites accessible to as many people (using any device) as possible. It is important to remember that not only beginners or inexperienced internet users benefit from accessible construction, but also people with a variety of visual, navigation, hearing, and intelligence skills. Read how and why accessibility matters for SEO.

    4.   Optimize your website for Mobile Devices

    Most people use mobile phones when they need to buy or sell a property online. Here are the key things to look at when optimizing your real estate website for mobile devices.

    ·        Responsive design

    ·        Page speed

    ·        Homepage

    ·        Site navigation

    ·        Site search

    ·        Usability

    Responsive design automatically adapts the site to the screen of any device that is important to use. Page speed is important because if your visitors have to wait a long time, they can return to search results and find your site easy to use.  Keep it as simple as possible. If the user has to navigate through to reach the goal, they are less likely to reach the end. The Mobile-Friendly Test Tool helps you determine if your website is good and provides a list of issues that need attention.

    5.   Add your website on google my business and relevant business directories

    Google My Business assists businesses in getting more exposure by showcasing relevant businesses based on certain searches. Customers may easily access information about your online business on Google, such as hours and contact information. Register your website on google my business Update your listing with your;

    • Company address
    • URL of your website
    • Contact information, including your phone number
    • Photos, real estate listings, clients, etc.
    • Real estate categories for instance, commercial, residential, for sale/rent.

    This can help you rank higher in Google local search, giving you a better chance of competing with your competitors such as Premier Agent. Also do research on best online business directories in Kenya and list your business there.

    6.   Build engagement through social media and blogs

    Use the best social media platforms like Facebook, Instagram, LinkedIn and Pinterest. They will not only help in ranking your search engine but also help in digital marketing strategy. Without social media, real estate agents will struggle to gain presence online.

    Social media helps to;

    •  Build Brand Awareness
    • Generate Leads
    •  Nurture Leads Connect Social Posts to Opportunities
    • Measure Marketing Efforts
    • Build Brand Authenticity
    • Grow Your Audience
    • Build a community

    Whenever you share social content, add location-based hashtags and descriptions with most targeted keywords, also publish your useful content on your blogs.

    Also read: Social media tips for real estate agents to elevate your marketing strategy.

    7.   Use a structured schema markup

    Schema Markup helps search engines in comprehending and displaying the content of your webpage in search results, which is advantageous to your real estate SEO. Your home listing page, for example, includes information such as price, location, and property size. The schema markup makes it easy for bots to interpret the content on your page and present it in search results. Adding schema markup to your real estate website improves search visibility and increases click-through rate (CTR).

    Bottom Line

    There are still opportunities in this competitive real estate industry. You just need to learn them. With the help of these SEO tips, you can manage your local search. If you are new in SEO, we are here to help you. Visit our website https://www.premieragent.co.ke/ or contact us 0726982982.

  • Ultimate Guide to Rental Income Tax in Kenya

    Ultimate Guide to Rental Income Tax in Kenya

    Taxes can be complex. But rental income taxes do not need to be. Here, we break down what rental income is and how to make payment.

    First, rental income is in two forms:

            I.            Income from a residential premise (Residential Rental Income Tax)

          II.            Income from a commercial premise (Commercial Rental Income Tax)

    Tax on residential rental income is payable either monthly or annually depending on the amount payable. More on this later. Income from a commercial property is assessed annually and is payable at a rate of 30% for companies and a graduated scale for individuals. If you have income from both commercial and residential premises, you may opt to treat these sources of income separately or simply opt for making unified returns.

    1.   (Monthly)Residential Rental Income Tax

    The Tax is payable if you receive rental income from residential property which is more than Kshs. 24,000 per month but does not exceed Ksh. 15,000,000 during any year of income. For the rent received, you pay to KRA a flat rate of 10%.

    For a partnership, each partner is responsible for reporting their share of the gross rental income received subject to the Ksh 24,000 per month or 15M annual limit.

    No expenses, like repairs, cleaning, electricity for common areas, repainting or so is allowed for deduction from the gross rent.

    The returns for this are done on Itax on a monthly on or before the 20th of the following month. For example, rent received in February is declared and paid on or before 20th March.

    If in any month you do not receive any rental income, you still need to file a return, but a NIL return.

    Residential rental income is final tax therefore, you do not need to declare the same in your annual income tax returns.

    The above Residential Rental Income Tax does not apply to non-residents and landlords who wish to make annual returns.

    What is the penalty for late filing and late payment of Monthly Residential Rental Income Tax in Kenya?

    Late filing of Monthly Residential Rental Income Tax returns attracts a penalty of:

    ·         2,000 or 5% of the tax due whichever is higher for individuals

    ·         20,000 or 5% of the tax due whichever is higher for corporates

    Late payment of Monthly Residential Rental Income Tax returns in Kenya attracts a penalty of.

    ·         5% of the tax due and 

    ·         late payment interest of 1% per month on the unpaid tax until the tax is paid in full.

     Residential Rental Income Tax for non-residents in Kenya

    Rental income received by a non resident is chargeable to tax at a rate of 30% of the gross rent received. Additionally, non-residents are not entitled to deduct any expense to arrive at a taxable income. The Tax is collected under the Withholding Tax (WHT) mechanism of the tenant.

    Where within a building you have both commercial and residential rental income;

    ·         if the gross annual  rental income is above Kshs. 288,000 or less than Kshs. 15 million, all rental income is combined in the annual Income Tax return.

    ·         Where the gross annual rental income is from the commercial tenants and or combined (residential & commercial) and is more than Kshs. 15 million, this part of the income is accounted for as the commercial rental income and taxed at either individual graduated scale or corporate rate of 30%. Remember withholding Tax on the Rental Income will also apply.

     Withholding Tax On Rental Income

    A tenant or an agent, appointed in writing by the Commissioner, is required to withhold 10% WHT on all rental made to a resident landlord for the use or occupation of immovable property. As a landlord you offset your final tax liability by any amount already  and submitted to KRA by your tenants.

      2.      Annual rental income tax returns

    This is filed by landlords with rental income below Kshs. 24,000 per month or above Kshs. 15 million per year and is reported together with income from other sources annually before June 30.

    ·         Rent is charged on actual amount received

    ·         Expense incurred to generate rent is allowed under section 15 of the Income Tax Act.

    ·         Tax is calculated under individual graduated scale or corporate rate of 30%

    ·         In addition, rent on non-residential buildings (Commercial) is taxable under the VAT Act(No. 35 of 2013) – Laws of Kenya.

    Processing and remitting taxes charged on rental income is not only tiresome, time consuming but it also complex. In case you need aby help, call us on 0726982982.

  • Real Estate Partnership-Top Pros and Cons Explained

    Real Estate Partnership-Top Pros and Cons Explained

    With property prices soaring, buying land, house or building commercial buildings on your own can be nearly impossible. Not only do you need to have deep pockets, you also need the time and energy to manage the entire process from beginning to end.

    If you assess most of the top companies, nearly all of them were formed when several people teaming up with to do bigger and better deals. But such partnerships are never easy. Commitment to work together is never something to be taken lightly. The team that you surround yourself with could easily make or break the potential of success and be either the best or worst decision you will ever make.

    Here are some of the biggest pros and cons of a partnering up to help ensure the one you get into will be as powerful as possible:

    Advantages of a real estate partnership

    Shared Responsibilities: Partners always bring something extra to the table, such as capital, connections, project experience, or professional expertise such as legal or financing. Partnering with someone who has more experience can help you minimize your mistakes and money losses.

    Extra Benefits: If you are the more experienced investor in the partnership, you could contribute your expertise and time in exchange for a portion of the proceeds. For example, real estate agents make great partners because they can access real estate deals before they are public. Real estate agents also have access to networks that include homeowners, sellers and other investors, which can be helpful when you are looking for good investments and possible partners.

    Less Engagement: Whether you are a part-time investor or doing it full time, you’re probably busy. A real estate partnership can be the perfect investment vehicle if you are looking for a passive investment.

    Access to a network: Personalities of each partner can combine to a greater level of credibility in meetings with lenders, prospective tenants, and additional investors.

    Cons of a real estate partnership

    Sharing profits: Profits of the investment such as monthly income, profits from the sale, and tax benefits must be shared among the partners, limiting the potential profits for any one investor. When starting, outline very clearly how the money is going to be divided.

    Personality conflicts. These can occur due to different investment and management styles, or partnership agreements that don’t clearly define who is responsible for doing what, where, and when

    Disagreements: Poorly written partnership agreements can also result in a good investment going bad if responsibilities aren’t clearly agreed on. Strains in a real estate partnership can also occur if one partner feels they are doing a disproportionate share of the work without getting an equal share of the returns

    Risk of capital call: The need for partners to contribute additional funds can occur if a project isn’t performing to expectations, or if one member wants to exit early and demands to be bought out by the other partners

    Lack of liquidity: By investing in a real estate partnership it typically means your money is locked up in a long-term investment. This means that you may not be able to sell the property when you want to. This can be problematic if you need the money or want to reinvest it somewhere else.

    No guarantee: While many people believe investing in real estate is safer than the stock market there is no guarantee you will earn a profit or even get your money back from your initial investment. Like the stock market, real estate markets fluctuate, and renovation costs can go over budget, which could impact your financial returns.

    Final Thoughts

    Forming a real estate partnership and buying property together can be a great way to scale up your own portfolio and take your real estate business to the next level. If a partnership is going to help you get your income and investment goals to the next level, go for it.

    Surround yourself with the people you aspire to become and you will find partnership opportunities everywhere. Just don’t pursue every deal you see. Do your own due diligence depending on the amount of money involved. 

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