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Author: Peris Gachago

  • How to Do an Online Title Deed Search In Kenya

    How to Do an Online Title Deed Search In Kenya

    Doing a title deed search in Kenya should be the first thing to consider when planning to buy land for residential or commercial use. A title deed is a document that outlines the details of a landowner. 

    There are two ways you can run a title deed search in Kenya. You can manually search in the Ministry of lands office. Second, you can search via the eCitizen app/website for the title details you need, thanks to the technology.

    Remember that you must be vigilant before committing your funds to some piece of land. That’s why you need to do due diligence about the property you need to purchase.

    But first, you need to understand the types of title deeds we have in Kenya.

    • Freehold title deed. This title gives the land owner all the rights to own the land. There is no cap on the number of years to own the land.
    • Leasehold title deed. With leasehold title, you can only own property for not more than 100 years.
    • Sectional title deed. This title allows you to own a single unit in a big apartment. 

    What Do You Need To Run a Title Deed Search in Kenya

    Of course, you need to be prepared before you head to the eCitizen app to run your search. If you dont have an eCitizien account, you need to have one, so open it here. Apart from title search, you can still get other valuable government services from where you are.

    The following is what you need to do an online land title search in Kenya:

    • An active eCitizen account
    • The title deed number
    • Your national Id copy
    • Personal details such as address and phone number
    • A copy of your KRA Pin certificate

    Step By Step Guide to Conducting an Online Title Deed Search in Kenya

    Step 1: Create and Log into your eCitizen account

    Creating an eCitizen account is simple, whether you are a resident or in the diaspora. All you need to do is fill in the correct information about yourself. You can use a laptop or download the app to your mobile phone.

    Step 2: Visit the Ministry of Land section

    After you click the ministry of lands icon, you should see the land search icon. If you don’t see the land search right away, you can save time by searching it at the top of the page.

    After typing the title number, you will get an online form to fill out. Ensure you fill in all the details correctly.

    Ultimate Guide to Taxation of Airbnb in Kenya

    Step 4: Make Payment

    You will be redirected to make a payment of Ksh. 550. There will be options to pay via Mpesa, credit, or debit card.

    Step 5: Download and Print the Search Results 

    A download option will appear after your payment is successful. However, you can still find the details whenever you log into your eCitizen account.

    The Bottom Line 

    As you’ve seen, conducting an online title deed search in Kenya is simple. Now you can head to enquire about the title deed you need.

    Frequently Asked Questions 

    1. How do I know if a title deed is original?

    The ministry of lands and planning always has a Certified title deed copy. So, whenever you enter the deed number in the land search, you should get confirmation whether the deed is real or fake.

    1. How do I verify a title deed?

    The ministry of lands and planning should be able to verify your land title details.

    1. Can a title deed have two names in Kenya?

    Yes. You can jointly own land with someone else. Therefore, the title will have more than one name on it.

    1. How long can it take to replace a lost title deed in Kenya?

    If you report a lost title to the ministry of lands, the registrar will check whether the correct process was followed during the deed transfer. After confirmation, you can get a new title after 60 days.

    Unlock the secrets of the Kenyan real estate market

  • Beginner’s Guide to Real Estate Investment in Kenya

    Beginner’s Guide to Real Estate Investment in Kenya

    Real estate investment could be the next big thing to try out in Kenya. Indeed, you can be the next millionaire if you successfully invest in this booming business.

    You should know that you need lots of patience when investing in real estate. That’s because you will not get the returns immediately or after a short while.

    However, you need to make excellent decisions before making your investment. That’s why you need this guide to make nice moves in the business.

    What is Real Estate? 

    Real estate can mean developed or undeveloped land. A developed real estate means you are buying an already complete building that would start bringing returns sooner.

    On the other hand, undeveloped real estate means buying raw land that you would later build whatever buildings you need.

    Types of Real Estate

    You should understand the real estate you need to invest in to help you make sober decisions.

    We have:

    • Residential real estate 

    This investment involves the building of residential houses. To properly invest in this kind, you should choose a location close to schools, hospitals, and commercial premises. 

    • Commercial real estate 

    Commercial real estate is the building of business premises. These kinds of buildings are popular in large town CBDs like Nairobi, Kisumu, Mombasa, and Nakuru. 

    Most likely, you will get business retailers and wholesalers on these premises.

    • Industrial real estate 

    As the name suggests, industrial real estate houses industries that manufacture, pack, and store goods. In each town, there is always a designated location set for industries. Therefore, if you want to invest in building warehouse go downs, you should invest in the allowed location.

    Steps to Invest in Real Estate in Kenya 

    1. Save money first/ build your credit score.

    Of course, you need a lot of money before you can buy your first real estate. However, saving enough money to develop a real estate business may take longer. 

    And that’s where you should consider taking out a loan. In this case, you will need a high loan amount, so your credit score and earning potential should be high.

    To build your credit score, you can take small loans and pay them on time. That will place you in an excellent place to get a higher loan when you need it.

    Remember that you can still get long-term bad credit loans, but the interest rates will be very high. Therefore, strive for a higher credit score to pay lower interest rates.

    1. Stabilize your income 

    Every lender would like to work with you if you have multiple stable income sources. Of course, no one would risk lending money to someone with an unstable income.

    So, work on your primary income sources and make them as stable as possible.

    In addition, always ensure you have multiple income sources that can supplement you during loan repayment. 

    1. Do thorough research 

    Before taking out a loan to invest in real estate, you should thoroughly research the suitable locations for your investment.

    You should consider a suitable location for the type of real estate you need to invest in. 

    For instance, if you need residential real estate, you can search for land in areas like Ruiru, Thika, Kitengela, Mlolongo, etc. 

    City metropolitan areas do better in residential houses than in the CBDs.

    In addition, you should also research the best deals you can afford to buy. That way, you will have a figure in mind when applying for a loan. However, remember that if you are after undeveloped real estate, you may have a long way to go before earning some returns. Therefore, ensure you have stable income sources to repay the loan and maybe fund the house building.

    Your research should also include searching for title deeds via the eCitizen portal. If you get a suitable place to buy and the budget is within your reach, don’t hesitate to request a title deed copy to verify. At least you will be sure about the investment decision you are about to make.

    1. Take a loan 

    After you settle for the right place to buy, you can now head to borrow a loan that’s enough for the purchase. 

    1. Close the deal 

    This stage is the final in owning property, but don’t be too excited to make haste decisions. You should make electronic transfers and avoid carrying cash anyhow. That will reduce the risk of theft.

    In addition, ensure you have some people to witness (both you and the seller) while doing the transfers.

    1. Develop your property 

    Property development is the stage that will see you start earning sooner from your investment. You will need to build the type of real estate you need. 

    But what happens if you do not have enough funds and have a loan to repay? Well, this scenario is most likely to occur if you had taken a loan to buy the raw land.

    And that’s why you should strive to have more income sources. However, don’t give up if you’ve no money. You can always top up your loan after some years of repayment. That will help you get some cash to develop your property.

    1. Market your property 

    Now, you are about to reap the fruits of your hard labor. But it may take time before you reap.

    However, you can make a difference by bringing your property to the ears and eyes of potential clients.

    To market your property, you can choose the most popular advertising means like TV, radio, or social media. The more frequent you are in people’s spaces, the more likely you will get clients.

    Conclusion 

    Real estate investment is a good idea if you follow the correct procedure. That’s why you should go back and reread this post if you want to see positive investment results.

    Start your real estate journey today!

    Frequently Asked Questions 

    1. How much do you need to invest in real estate in Kenya?

    The amount you need depends on the location you choose. In remote areas, you can buy land starting from Ksh.150,000. But in urban centers, you need at least 1M to purchase raw land.

    1. What is an excellent rental yield in Kenya?

    In Nairobi and its environments, you can get a return on investment ranging from 6% to 7%. 

    1. Is real estate investment profitable in Kenya?

    Yes. Real estate is a business that grows directly proportional to population. So, it’s profitable if you manage your investments wisely. Construction and real estate are the fastest-growing industries in Kenya.

  • Top Factors to Consider before Investing in Commercial Real Estate in Kenya

    Top Factors to Consider before Investing in Commercial Real Estate in Kenya

    Investing your funds in commercial real estate can make you the next millionaire. Research shows that the global commercial real estate market is worth $30 trillion. It’s such a big market indeed. In Kenya, real estate is growing at an alarming rate. The market is currently contributing more than 20% of Kenya’s GDP.

    Among the types of real estate, commercial real estate seems to increase faster. However, before you invest in this business, you need an actionable guide to help you out. 

    Now, let’s dive in to understand more about commercial real estate.

    What is Commercial Real Estate?

    Commercial properties are usually designed for business activities. Whether you are planning to build houses and sell them later or if you want to lease office spaces, you will be doing commercial property business.

    However, you must be patient when choosing the location to establish your commercial property. Remember that you may have to focus on more populated areas if you are targeting to build commercial buildings for retail businesses.

    In big urban centers, commercial property can have multiple business models in the same building. For instance, one building can have retail stores on the ground floor and first floor, while the other can be for office spaces.

    The Main Categories of Commercial Real Estate 

    • Retail. With this category, you rent your property to other business people who retail and wholesale consumable goods like cereals, groceries, shopping malls, etc. These kinds of commercial real estate are segmented into small to medium sizes that can accommodate such businesses. 
    • Industrial. If you plan to invest in this commercial property, you should be prepared to construct big buildings that can accommodate manufacturers and warehousing.
    • Office space. To invest in this comercial real estate, you need to segment your building into various small rooms suitable for offices. However, the offices should not be that small. Instead, you can choose to have larger office spaces and smaller ones.
    • Hospitality. Hospitality involves those who provide services like big hotels, restaurants, medical centers, and lodgings. 
    • Multifamily. A multifamily commercial estate involves selling or leasing big houses larger than fourplexes.

    What to Consider Before Investing in Commercial Real Estate in Kenya 

    1. Who are your target customers 

    Commercial property is classified into different classes, which serve different clients. 

    For instance, retail stores and office spaces require different space designs. Therefore, the type of commercial property you invest in brings in different clients with specific businesses.

    1. What are the industry trends?

    Commercial property investment is growing rapidly. Thus, it will be an excellent idea to have enough knowledge of trending issues in the industry. Indeed, requirements and features are changing, and your property should adjust.

    1. Do you have a reliable source of money?

    Commercial real estate is costly when you compare it with residential property. These are buildings for housing businesses, and that’s why they have higher price tags. Therefore, you must prepare to spend a lump sum of cash on your purchase.

    You can search for an excellent lender to help you with that.

    1. Is there growth potential?

    Well, you are definitely after profits, and you can only get excellent profits if you put up your property in a highly populated area. For instance, if you target urban centers, near colleges, and other industrial sites, your business will grow since you will get more people willing to set up businesses.

    1. Consider the rental/leasing rates. 

    Of course, you need to get your investment return as soon as possible. So, consider investing in places with affordable rentals such that your houses won’t be vacant for so long. Remember that if the rent rate is too high, it might scare away the customers. And again, if the rent is very low, it will take longer before you get your Return On Investment (ROI).

    Pros of Investing in Commercial Real Estate

    • You will build more professional relationships with your clients. Remember that your tenants will also be doing business. So it will be a business-to-business relationship. As a result, you will learn other business models which you may try out in the future.
    • There is a higher ROI with commercial property than with residential property.
    • Your houses will always be neat and highly maintained. Your tenants will keep their business premises more presentable and highly maintained to draw more clients to themselves. As a result, you will not spend much money renovating your buildings.
    • You won’t get disturbing calls from your tenants at odd night hours since they will also be resting like you.
    • If you are buying a complete commercial property, it’s easy to know the price range. You can request the current owner to give you a copy of the income statement that you will use to determine the buying price.

    Cons of Investing in Commercial Real Estate

    • You need professional guidance. Therefore, you will have to hire a specialist to help you make sound decisions to grow your investment. 
    • The initial investment needs lots of cash, unlike residential real estate.
    • More people means more risks. Your property will attract your client’s customers, making the place more congested. As a result, accidents may occur within your property.
    • You will also invest your time in the business because you will need time to do common area maintenance costs and enhance more public safety measures. Therefore, you will need to be around your commercial property more often than a residential property.

    The Bottom Line

    Always ensure you follow the correct guideline when investing in commercial real estate. If you take calculated risks, you can earn lots of money with your investments.

    Empower yourself with knowledge! Join our free webinar and learn the latest trends, buying strategies, and insider tips to navigate the Kenyan real estate market with confidence.

    Frequently Asked Questions

    1. What type of commercial real estate is profitable in Kenya?

    As long as your property is in a populated area, you will make profits since your houses won’t stay vacant for long. In addition, the profitability of your commercial property results from the number of tenants you have.

    1. Which type of real estate makes more money?

    Commercial real estate makes more profits than residential real estate.

    1. How can I invest in real estate with no experience?

    The easiest way is to buy property to rent and become a landlord. That way, you won’t deal with more documentation.

  • 10 Essential Tips For First-time Real Estate Investors

    10 Essential Tips For First-time Real Estate Investors

    The real estate investors you see around started from a point, and it was much tougher in their days than it is currently. As a first-time real estate investor, you should be glad because a lot of free information is available with just a few clicks. 

    A good real estate investor should also be an excellent researcher and a reader. This blog explains ten tips you should have before investing in real estate. Remember that you need adequate knowledge to invest in real estate.

    People who follow the tips here have all it takes to succeed in property investment in Kenya. Here is a breakdown:

    The 10 Tips for Real Estate Investment 

    It’s time to be attentive since you need these tips to help you succeed in property investment. 

    1. Be a good researcher.

    Researching is the most basic skill you can rely on when starting a real estate investment. You should learn almost everything about property investment before starting. 

    Google and YouTube are currently very good leverage in searching for anything you need about real estate investment.

    You should also learn to search title deeds lest you fall prey to conmen.

    2. Ensure you can endure all challenges.

    Real estate investment is not for the faint-hearted. For instance, don’t expect to start gaining profits as soon as you buy your property. Actually, it can take years before realizing your returns on investment

    In addition, a property needs closer management to ensure all repairs are made on time to avoid greater damages.

    Can you avail yourself on the property premises regularly? If you have invested in real estate in Kenya while in the diaspora, you can hire a property manager to help you manage the property. 

    3.Can you sacrifice your lifestyle for a better future?

    Real estate investment requires a lot of money at first. Therefore, you may have to dig deeper into your pockets to cater to maintenance costs and all repairs. 

    And this calls for a strained budget and cutting off unnecessary expenses. Can you manage that?


    4.Location is the main determinant of your success. 

    When thinking of real estate investment, you should know that a good location results in better yields in the future. For example, locations near schools, big towns, and the industrial sector have a high demand for residential real estate. 

    Therefore, investing in residential or mixed-use real estate can be a great idea that will profit you. In addition, choose a location that has all social amenities since no one likes staying in areas with scarce social amenities.


    5.Go in with the right mindset.

    Research shows that you will win or lose from your mind before actualizing your plan.

    You need a growth mindset to succeed in real estate investment.

    You will not make it if you focus more on failures than progress. Yes, as a first-time real estate investor, you can make mistakes, but what you do after realizing your mistake makes the difference. Always ensure you arise again after failing. However, strategize to ensure you won’t make the same mistakes again. 


    6. Take baby steps till you are a pro. 

    Don’t plan to buy hundreds of buy-to-let apartments at once. Instead, focus on starting with little apartments you can comfortably manage. 

    After succeeding in a few properties, you can now take big strides in the industry. In addition, do your homework on which type of real estate you should expand. 


    7. Have some basic maths skills. 

    Basic maths skill is essential when doing any type of business. You don’t have to be a super genius about complex maths, but ensure you can calculate your monthly rental income, all expenses, and the cash flow. 

    You can pass the other complicated maths involving some accounting knowledge to your accountant. But it will be a good idea to know how to balance your maths, even without help. This idea can help you salvage your property investment if you get a bad accountant. 


    8. Be a good manager.

    To succeed as a first-time real estate investor, you should have basic management skills. You can take free courses to learn management in Course Hero, Hubspot, or Udemy.

    Being a good manager means you do the right thing at the right time. In addition, you will treat your real estate as a business. 


    9. Learn from your mistakes. 

    Everyone makes mistakes, but the difference comes after what you do about your mistake. You can make a mistake and still change the tactic and succeed later. 

    However, if you spend so much energy focusing on the mistake, you might miss the opportunity to grow your real estate. 


    10. Don’t procrastinate. 

    There is a saying, ‘procrastination is the thief of time. But again, let’s add that procrastination is the thief of your future. Once you postpone what you were to do today, you’ll spend some other time made for something else trying to catch up.

    So, plan accordingly before investing in real estate and ensure you do what you should do at the right time. 

    The Bottom Line 

    As a first-time real estate investor, you should possess the above-mentioned tips before starting. Remember, these tips greatly impact your success in the property business sector.

    Always ensure you do your homework before starting with anything, whatever it is.

    Frequently Asked Questions

    What are the steps for starting a real estate investment in Kenya?

    You should have excellent research skills before starting the investment.

    Keep your credit history good because you’ll need it to get better mortgage rates.

    Get excellent property agents in Kenya to help you get good locations.

    Get a real estate attorney to help you with all legal proceedings.

    Cose the real estate deal with the help of your attorney, bank representative, and witnesses.

    Which is the best type of real estate to start as a beginner?

    As a real estate beginner, start small. You can start with a mixed-use property in a more populated area. Start with a few apartments, and you can gain profits and later expand to a big estate. In addition, you can start investing in REITs, which will help you gain more investor knowledge.


    How does the 50% rule work in real estate, and should I focus on it as a first-time investor?

    Most investor gurus believe that the 50% rule is a good way to know your actual cash flow in real estate. That is why you should know how the rule works. 50% goes to expenses, with the remaining half, you pay the mortgage, and the balance is the cash flow. Actually, this rule defines your real estate profits, which determine whether you should leave or go on with the investment.

    Need expert guidance in the Kenyan real estate market?

  • The Ultimate Guide to Rent-to-Own Contracts in Kenya

    The Ultimate Guide to Rent-to-Own Contracts in Kenya

    When it comes to renting a property, there are a few different options available to tenants. One option is to enter into a rent-to-own contract. This type of agreement can be beneficial for both the tenant and the landlord, as it allows the tenant to eventually own the property while the landlord receives a higher rent amount.

    If you’re considering entering a rent-to-own contract for a property in Kenya, it’s essential to understand how these agreements work. This guide will provide an overview of what you need to know about rent-to-own contracts in Kenya. 

    There are a few things to consider before signing a rent-to-own contract, so make sure you read this guide carefully.

    Keep reading.

    What is a Rent-to-Own Contract in Kenya?

    A rent-to-own contract, also known as a lease-to-own contract, is an agreement between a tenant and a landlord in which the tenant agrees to rent the property for a set period.

    During the term of the agreement, the tenant will make monthly rental payments. A portion of each payment will go towards the eventual purchase price of the property.

    Rent-to-own contracts are becoming more popular in Kenya as a way to buy property. The recent development of rent-to-own is the government residential house plan in most counties.

    How Rent-to-Own Works in Kenya 

    This type of contract allows you to rent a property for a set period, with the option to buy it at the end of the lease. This criterion is a great way to get on the property ladder if you can’t afford to buy outright. Or if you need clarification on whether you want to commit to a property for the long term.

    The property seller quotes the price before the buyer agrees to sign the contract. In addition, the contract entails the monthly payments of rent and how long the buyer should pay before they own the property entirely. 

    Buyers should do market research to compare if the current market favors them or the seller. They should also compare rent-to-own prices and mortgage loans.

    At the end of the contract term, the tenant can purchase the property for the agreed-upon purchase price. 

    The Benefits of a Rent-to-Own Contract in Kenya 

    To the buyer

    A rent-to-own contract can be a great way to get into a home without putting down a large amount of money upfront. 

    This type of contract can also help to build up your credit score as long as you make your payments on time.

    Another benefit of a rent-to-own contract is that you may have the opportunity to purchase the home at a lower price than the current market value.

    You eventually become a homeowner without taking a mortgage loan. And it’s a great way if you have a lousy credit score. 

    The flexibility of payments helps you in managing your monthly budget. In addition, if you don’t want the home again, you can edit the rent-to-own contract since it’s flexible in nature.

    You grow your home equity faster, and with a clear record, you can take a loan against your home equity. 

    You also move into your dream home faster. And you can customize it the way you wish it to, like, adding extra rooms, boards, or a kitchen garden.

    To the seller

    A benefit to the seller is that the tenant will take good care of the house because they are the end owner after completing payments. 

    The seller enjoys a lump sum monthly rent income from their rent-to-own tenant. They can use it to pay their mortgage and build their credit score.

    The Disadvantages of a Rent-to-Own Contract 

    A rent-to-own contract can be a great way to get into a property with a smaller up-front investment, but there are some potential disadvantages to be aware of.

    First, the monthly payments during the lease period are typically higher than they would be for a traditional rental since a portion of the payment goes toward the eventual purchase price. This can make it challenging to save up for the down payment on the property.

    Additionally, if you decide not to purchase the property at the end of the lease period, you may forfeit any money that you have already paid toward the purchase price.

    Finally, it is essential to be aware of any potential hidden costs in a rent-to-own contract, such as maintenance or repairs that may be the responsibility of the tenant. In a typical rental property, sellers are responsible for maintenance costs, which change in a rent-to-own property. The buyer usually foots all costs involved in maintaining the property, which will eventually add to the purchase price. 

    How to Create a Rent-to-Own Contract in Kenya 

    A rent-to-own contract in Kenya is a contract between a landlord and tenant that gives the tenant the option to purchase the property at a set price within a specified period of time.

    The contract should outline the purchase price, the rental terms, and the length of the option period. It is important to have a lawyer review the contract before signing it to ensure that it is fair and legally binding.

    Both seller and buyer should have an attorney and witnesses during the contract signing.

    The Bottom Line 

    Renting to own contracts is a great way to own property in the most lenient ways possible. You don’t have to take a loan to finance your first property. And that’s a good way to stay debt-free and build your net worth.

    However, ensure you follow legal procedure to draft the contract that can be presented in court. 

    Thinking of buying or selling a property? Schedule a free consultation with our team.

    Frequently Asked Questions 

    Is rent-to-own a good idea?

    Yes. Since the contract is flexible, you can give it a try to own a home using this method. It’s good since you don’t need a mortgage loan to buy a home.

    What do I need to participate in a rent-to-own agreement?

    The most important part is the ability to pay both rent and the monthly capital payment. Remember that skipping payments teaches the contract, and the seller can evict you from the house.

    Who caters to the maintenance costs of a rent-to-own property?

    In most cases, the buyer foots all bills related to the house. And that’s the greatest limitation of these properties.

    Thinking of buying or selling a property?

  • 7 Proven Tips to Save for Your House in Kenya

    7 Proven Tips to Save for Your House in Kenya

    Saving for a house in Kenya can be difficult, but it is possible to do with the right planning and budgeting. To save for a house, you should first understand your financial situation and what you can realistically afford to save.

    Once you know your budget, you can start saving by setting aside money each month into a savings account. Make sure to shop around for the best saving interest rates in banks and financial institutions and look for any government schemes that can help you save.

    It is also important to have a realistic timeframe for purchasing a house, as this will help you stay on track with your savings.

    This blog gives you tips to help you save for a house in Kenya. These tips can help you become a first-time investor with little but consistent monthly effort.

    But why should you save for a house in Kenya?

    Why Should You Start Saving for a House in Kenya?

    There are many reasons why you should start saving for a house in Kenya.

    For one, it is a great investment. The value of your home will likely go up over time, so you can sell it for more in the future if you need to.

    Additionally, owning a home can provide you with a sense of stability and security. You will always have a place to live, even if your financial situation changes.

    Frequent and timely mortgage payments can improve your credit score, which places you in an excellent place to build wealth with other loan types. 

    You’ll get tax deductions once you keep clear records of expenses regarding the home, like the mortgage and insurance.

    You’ll have a stable monthly payment of a mortgage, so you’ll know when you can fully own the home. This helps you properly budget your income and invest in other money-making ventures. 

    Finally, it can be a great way to build equity. If you make payments on your home and eventually sell it, you can pocket a large chunk of the sale price.

    How to Standout From Your Competitors in Real Estate Investing

    Tips on How to Save For a House in Kenya

    There are many ways to save for a house in Kenya. Here are four tips to help you save:


    1. Make a budget and stick to it.

    Determine how much you need to save each month to reach your goal. Then, make sure you don’t spend more than that amount.

    A budget will help you get the most out of your monthly income. Saving for a house in Kenya will require you to create a realistic monthly budget.


    2. Invest in a good savings account.

    Look for an account with a high-interest rate so you can earn more on your savings.

    Most banks in Kenya have excellent fixed deposit rates, which can help you build more money over a specified time. In addition, some banks will deduct the amount you allow them first thing after your account is credited with your salary. As a result, that limits temptations if using your savings. And that follows the save-first criterion.

    3. Start small.

    Start with a smaller goal if you can’t afford to save a lot each month. Once you reach that goal, you can start saving for a larger house.

    Setting a high amount of savings will result in forfeiting the whole thing. When you are uncomfortable saving a certain amount of money, just reduce the saving amount. After all, the other bills are constant, not unless you want to break into your savings kit.


    4. Stay disciplined.

    It can be tempting to spend your savings, but if you want to reach your goal, you need to be disciplined.

    Stick to your budget, and don’t dip into your savings unless it’s an absolute emergency. However, this should not be the case. Actually, you should have a separate savings kit for emergency needs since no one calls them, but they eventually come. 

    Being financially disciplined is one way that can help you save for a house in Kenya. 


    5. Cut expenses. 

    You have to realise that saving for a house in Kenya is a great goal that needs lots of cash. Therefore, ensure you are ready to sacrifice your luxuries to save more each month.

    You can dig deeper into your budget and remove unnecessary items. Find ways you can buy items at discounts. For instance, Jumia, Kilimall, and other online stores offer discounts from time to time. In addition, you can follow influencers who give you shopping coupons with discounts.

    6. Have a target.

    Saving without a target or a goal is very tough, and in most cases, it doesn’t work out in the end. Therefore, you should set goals on what amount of money you should save within a specific period. Targets help in fueling you to achieve them. You can reward yourself with a small treat if you achieve your monthly, semi-annual, or annual target savings. 

    How to Actualize Your Home Ownership Dream in Kenya 

    Saving for a home can seem impossible, but there are ways to make your dream of owning a home in Kenya a reality.

    Start by creating a budget and saving as much as you can each month. You can also look into government programs that offer assistance for first-time home buyers and look for ways to reduce your monthly expenses.

    With some planning and perseverance, you can save enough to buy your home in Kenya.

    Conclusion 

    Saving for a house in Kenya is a great way to own your dream home or commercial property. It’s a good idea to start as early as possible. 

    Remember that your discipline in restraining your budget greatly contributes to how much you save for a house. 

    Thinking of buying or selling? Talk to our team.

    Frequently Asked Questions 

    How much does it cost to own a home in Kenya?

    This depends on what size of house you need. For instance, a 1 bedroom house in Nairobi could cost at least Ksh. 3 million. 

    When do I start saving for a house?

    As soon as you have enough income to cater to your needs plus savings, don’t hesitate to start saving for a home. 

    How much should I save in a month for a house?

    This depends on the house you like to buy and when you would like to buy it. In addition, your monthly income should determine how much you should save for a house on a monthly basis.

    What is the fastest way to save for a house?

    The fastest way to save money for a house in Kenya is by creating more than one income stream. This will help you have more to save at any given time. 

  • 15 vs 30-year Mortgage in Kenya: Which is Right For You?

    15 vs 30-year Mortgage in Kenya: Which is Right For You?

    Are you worried about how you can be the new home/property owner in town today? Well, mortgage loans are a good way to help you achieve your property ownership dreams. You can access a 15-year or 30-year mortgage loan in most Kenyan banks.

    Indeed, it’s fast and more convenient to own property through a mortgage than saving enough money to buy your desired property. Mortgages have helped millions of people to own homes and income properties in Kenya.

    And the fascinating thing is that you can be the next property owner with the help of a 15-year or 30-year mortgage in Kenya.

    Keep reading the blog to learn about these two types of mortgage repayment terms in Kenya.

    What is a Mortgage Loan in Kenya?

    A mortgage is a loan that funds property ownership. If you want to own a home, land,  or commercial property, you can take this loan to help you purchase it. Some banks in Kenya help you acquire land and build property on it, whether a home or commercial property. 

    One thing you should know about mortgages is that the property you purchase is collateral against the loan. Once you skip multiple loan payments, the bank can repossess the property, and you stand to lose. Therefore, you should have a stable income to repay your mortgage loan on time if you don’t want to lose your property and money.

    You can apply for a 15-year or a 30-year mortgage loan to finance your property ownership.

    15 vs. 30-year Mortgage Loan: What’s the Difference?

    15-year mortgages are a good option for people who can afford the higher monthly payments and who want to pay off their mortgage as quickly as possible. On the other hand, 30-year mortgages are a good option for people who want lower monthly payments and who are comfortable with a longer timeline to pay off their mortgage.

    15-year mortgage loans have lower interest rates, and the repayment is short. On the other hand, a 30-year mortgage has higher interest due to the extended repayment period.

    Similarities of 15-year and 30-year Mortgage Loans in Kenya

    • They both help one to own a home/property in Kenya.
    • Both loans can build your credit score if you make timely payments.
    • You build equity as you pay the loan. In addition, you can take another loan against the accrued property equity.

    The Pros and Cons of a 15-Year and 30-year Mortgage Loan

    There are pros and cons of both 15 and 30-year mortgages in Kenya. Before filling out the mortgage application form, make sure you study the loan repayment term you prefer.

    Pros of a 15-year mortgage

    -Shorter repayment term

    -Low interests.

    -You’ll pay your 15-year mortgage half the time you could have paid a 30-year loan.

    -The overall payment is lower compared to that of a 30-year mortgage.

    -You build your home equity faster.

    Cons of a 15-year mortgage

    -You will pay higher monthly installments.

    -You may fail to save money due to a strained monthly budget.

    -If anything happens to your main income source, you will struggle to pay off the loan.

    -You should have a very high monthly income to manage the monthly payments of a 15-year loan.

    Pros of a 30-year mortgage

    -It has lower monthly repayments than the 15-year mortgage.

    -You have the freedom to save money since your budget will not be too squeezed.

    -You can invest in other ventures because you’ll have some spare cash.

    -You can pay an extra installment per year if you wish, but it’s not compulsory.

    Cons of a 30-year mortgage

    -Very long repayment period.

    -You pay higher interest for the entire loan.

    -The interest rate is also higher since you will spend more time with the bank’s money 

    Which Mortgage is Right for You: 15-year or 30-year?

    There are many factors to consider when choosing the right mortgage for you. In Kenya, the two most popular options are 15-year and 30-year mortgages.

    15-year mortgages offer several benefits, one being repaying the loan faster. They typically have lower interest rates than 30-year mortgages, so you’ll save money on interest over the life of the loan. They also have shorter terms, so you’ll build equity in your home more quickly.

    30-year mortgages have their advantages. They tend to have lower monthly payments than 15-year mortgages, making them more affordable in the short term. They also offer more flexibility since you can choose to make extra payments and pay off the loan early without penalty.

    Ultimately, the best mortgage for you depends on your unique financial situation. If you have a good flow of income for about the next 20 years, it’s good to go for the 15-year mortgage. But if your income level is little but more stable and long-term, you can consider a 30-year mortgage.

    Consider the following:

    • Income level
    • Debts that you have
    • Your current financial goals
    • Ability to repay the loan on time. Are you more disciplined in managing your finances?

    Summary

    Both 15-year and 30-year mortgage loans help you get your dream property. However, ensure you can comfortably repay your loan over the agreed period. Remember that you can build equity as you repay your mortgage loan, which helps build your overall net worth.

    Frequently Asked Questions

    15-year vs. 30-year mortgage, which do I take?

    The mortgage you take depends on your ability to repay the loan. The stability of your income flow determines your ability to repay a mortgage and the suitable loan term. If you take a 15-year mortgage with a low income, you’ll struggle to repay the loan since you still have other expenses.

    Is a 15-year mortgage loan cheap than a 30-year?

    Yes. The overall interest repayment of a 15-year loan is lower than that of a 30-year mortgage. This is because the bank charges interest half the time t would have charged for 30 years.

    Can I take a 30-year mortgage and repay it in 15 years?

    You can restructure the loan with our bank if you trust your income flow. That will help you save more money in interest you could have paid.

    Empower yourself with knowledge! Learn the latest trends, buying strategies, and insider tips to navigate the Kenyan real estate market with confidence.

  • Easy Steps to start Your Career as a Property Manager in Kenya

    Easy Steps to start Your Career as a Property Manager in Kenya

    Thousands of real estate investors in Kenya rely on the best property managers to benefit from their business. That calls for more property manager vacancies across the real estate sector. 

    This blog explains what a property manager is, the skills you need, the process, and the benefits involved in property management.

    Once you follow everything in this blog, you’ll become a go-to property manager everyone loves to hire.

    Keep reading.

    Who is a Property Manager, and What Do They Do?

    A property manager is a professional who is responsible for the day-to-day management of a property, including its maintenance, repair, and upkeep.

    Roles of a property manager in Kenya 

    Property managers play a vital role in the real estate industry, and their duties can vary depending on the type of property they are managing. For example, residential property managers typically handle smaller properties, such as apartments and condos, while commercial property managers may oversee large office buildings or shopping centers.

    Regardless of the property type, a prophttps://www.youtube.com/embed/oE3TBP52UEY?start=169erty manager’s ultimate goal is to protect the owner’s investment and ensure that the property is well-maintained and profitable.

    -They handle the financial aspects of property ownership.

    -Rent collection.

    -Mortgage payments and insurance.

    Taxes.

    In some cases, property managers may also be responsible for marketing the property and finding new tenants. Property managers can get tenants through advertising on posts and social media and also by getting connections from their real estate networks. 

    Good property managers help investors to achieve their investment goals. They will ensure that the apartments are in good condition all the time, making them more attractive to new tenants.

    Real estate managers usually have the tangible industry knowledge to enable them to keep the owner’s property at trending features in the region. For instance, if the neighboring houses have tiles and ceilings, a property manager should inform the owner to make necessary changes to upgrade. 

    NB: Upgrading leads to a monthly rental increase due to high-quality. 

    Qualifications and Skills Required to Be a Property Manager in Kenya

    A property manager in Kenya must have specific qualifications and skills to succeed. 

    As a property manager, you should strongly understand the Kenyan property market. They should know the ins and outs of the market, as well as the current trends. 

    Secondly, they must be excellent communicators. They will need to be able to communicate effectively with their clients and other property professionals. 

    Lastly, they must be well-organised and detail-oriented. It is important to keep track of all the different aspects of their job and ensure that everything is running smoothly.

    The Process of Becoming a Property Manager in Kenya

    In Kenya, the process of becoming a property manager generally involves completing a degree or certificate in business administration, real estate, or a related field.

    Many property management firms also require candidates to have several years of experience working in customer service, sales, or another related field.

    Some firms may also require candidates to pass a background check and/or drug test. Once hired, property managers typically undergo on-the-job training to learn their firm’s specific policies and procedures.

    The Benefits of Becoming a Property Manager

    There are numerous benefits to becoming a property manager.

    -Perhaps the most obvious benefit is the potential to earn a high income. Property managers can earn a very good salary, especially if they are managing multiple properties.

    -In addition to a high income, property managers also enjoy other benefits, such as job security and the potential for career advancement.

    -Property managers can become successful real estate investors since they have the required knowledge. 

    -Property managers have the potential to build a strong real estate network that helps in building their portfolio.

    -Another benefit of becoming a property manager is that it can be a very rewarding career. Property managers often form strong bonds with their tenants and take great pride in providing them with a safe and comfortable place to live.

    -Property managers often use their creativity and problem-solving skills daily, which can be very satisfying.

    Conclusion

    Overall, becoming a property manager can be a great career choice for those who are looking for a stable job with good earnings potential and the opportunity to make a difference in people’s lives.

    To become a property manager in Kenya, you must have a strong understanding of the Kenyan property market and its legal and financial aspects.

    You will also need to be well-organised and have excellent communication and customer service skills. If you have these skills and qualifications, you will be well-positioned to succeed in this field.

    Frequently Asked Questions 

    How do property managers get paid?

    Some real estate investors pay in commissions (a percentage of the rent collected per month), while others pay a constant monthly salary. If the owner pays commission based, you may not earn much if there is a high vacancy rate.

    Is being a property manager stressful?

    Indeed, this depends on the manager’s ability to handle tasks. You can meet with demanding residents, but it depends on how you treat them. Actually, you can create a good rapport with the residents, and they will give you ample time to make their stay comfortable. Something else, if the investor and board members are so demanding, you may have a hard time working as a property manager.


    What is the most important role of a real estate manager?

    Since real estate investment depends on house occupancy rate to make profits, a good relationship with tenants is important. That’s why property managers should do their best to ensure their tenants are comfortable. They should keep the properties as attractive as possible. In addition, solving tenants’ issues with ease is a good idea.


    What is the property manager’s responsibility to the owner?

    The property manager is responsible for overseeing all activity in a property. The owner expects timely reports on the status of the property and the tenants. If anything needs repair, the manager should report to the owner immediately. In addition, the property manager will foresee all construction and repairs to ensure they are quality before the owner makes payments. 

    Unlock the secrets of the Kenyan real estate market! Gain valuable insights from industry experts.

  • The Ultimate Guide to Early Retirement through Real Estate Investment

    The Ultimate Guide to Early Retirement through Real Estate Investment

    Having a retirement plan can save you from old age frustrations. Indeed, nothing hurts, like being old and weak and unable to work to make money. Remember that the older you get, the more you’ll be weak to work, and for some, diseases begin to trickle in, making the demand for money more intense.

    That’s why you need to plan your retirement as early as your 20s when you are strong enough to work and invest. There are just a few investments you can make to enable you to retire by 40, and one of them is real estate.

    Real estate investment is good if you make the right investment decisions. But how will it help you retire early? Well, that’s why we are here. You will learn how to invest in real estate and gain financial freedom as early as 40. 

    If you can invest in the right way to earn passive income by forty, why would you work till 60 to retire? Of course, you need an actionable plan to enable you to retire by forty through real estate investment.

    Actionable Steps to Help You Retire at 40 With Real Estate

    1. Start With the Right Mindset

    Your mindset plays a significant role in achieving your goals. If you have a negative mindset, you need to change it right away to be able to actualize plans to retire early. Remember that retirement comes after you’ve gained enough money and passive income assets that could last for generations if well maintained.

    In this internet era, you will get hundreds of books explaining positive mindsets and how you can gain financial freedom in the shortest time possible. That’s why you should use that to feed your mind with the correct information about money. 

    Robert Kiyosaki, in his book Rich Dad Poor Dad, explains how a rich dad and a poor dad taught their children about money. You have a positive mindset if you believe you can change the money pattern to gain more money.

    Doing things with the right mindset sets you apart from naysayers, and you will eventually get what you need. When actualizing this step, you need to make an effort to stay out of bad debts and try to build your credit score.

    1. Determine Your Monthly Income Level

    If you’ve been working smart, you probably have an income flow, maybe more. Now, you have to make a budget that allows you to save a good percentage of your income. 

    You need to derive an achievable saving plan. For instance, consider the 50:30:20 budgeting rule, which means:

    • 50% of your income after tax should go to needs.
    • 30% goes to wants.
    • And 20% goes to savings.

    You can as well derive another plan that works well with your priorities. But for now, your priority is to retire by 40 with real estate, so make your savings bigger.

    No matter how small or big your income is, you can’t do much without an achievable budget. At this point, you should cut off necessary spending and always look for ways to save money while shopping.

    1. Always have Insurance and Emergency Funds in place 

    We are in times where health, car, and business insurance should not be taken for granted. Insurance will help you cover a risk you don’t know when it will occur. 

    As a result, you will save more money, and you won’t have to stress about emergencies.

    You should also ensure that you have an emergency kit to help you cater to little emergencies instead of opting for mobile loans.

    If you have discipline and manage your income wisely, it’s possible to walk your way to retire at 40 with real estate.

    1. Research About Rental Income 

    If you put lots of effort while in your 20s, you can have your first rental property in your early 30s. After you’ve kept your financial health in order, it’s time to start thinking of investing in real estate.

    The best thing to make sound decisions is by researching all you need to know about real estate.

    You should answer the following questions:

    • What amount of income can you get from a rental property?
    • Is the income more than your current salary?
    • Can the rental income maintain your living standard?
    • How much rental income will you have after taxes?
    • Which is the best location to earn more rental income?
    • What type of real estate brings in more income?

    If you get appealing answers to those questions, you can move to the next step.

    1. Invest in Real Estate 

    Here is the catch, you will invest in property that brings in more money faster. After researching, you can settle for residential or commercial real estate investment.

    In addition, you can either buy a developed or undeveloped property. However, a developed property will be an excellent choice because you are a beginner investor in real estate.

    It’s now time to head to your savings account to get the money for buying your property. However, if you don’t have enough cash, you can opt to take a loan to finance your rental property. 

    Note: Before you take the loan, ensure you can repay it with the rental income and still cater to your lifestyle.

    A loan will do well if you buy an already developed real estate. That’s because you’ll only need to renovate the property to make it look appealing to your clients.

    1. Market your property 

    Don’t invest and sit down and wait for miracle clients. Go out there and show people why your property will meet their needs.

    You can advertise your property on social media platforms like Facebook and other traditional means, like on the radio or TV.

    Once you get the right clients into your property, you start climbing the financial freedom ladder step by step.

    1. Always maintain your property 

    Never let your property grow old. You should ensure you renovate your buildings more frequently. Remember that your houses should always look appealing since they will be your source of income after you retire.

    In addition, make sure your rental property is updated to current housing trends. That way, you will keep getting clients, hence more income.

    1. Grow your property ownership 

    Of course, you don’t want to have a single property and stop there. If you really want to retire at 40 with real estate, reinvest your profits.

    Diversifying your property investment puts you in an excellent place to gain financial freedom. Explore all opportunities in the real estate industry to be able to broaden your income flow.

    The Bottom Line 

    If you follow the right guide and have a positive mindset, you will be a property owner in your early 30s. So, what reason do you have to continue working after 40?

    Frequently Asked Questions 

    1. What networth do you need to retire at 40?

    Your average life expectancy after forty is around 46 years. So if you plan to spend Ksh. 4 million per year, you will need a networth of around Ksh. 184 million.

    1. Where should I be financially at 35?

    According to experts, you should have saved three times your salary yearly since you started working.

    1. How much should your savings be at 40?

    According to financial experts, you should have saved cash to keep you between 3 to six months in case of job loss.

    1. Can a 40-year-old retire?

    Yes. You can retire at 40 with investments like real estate or cryptocurrency. However, you’ll need a lot of dedication towards your investment plan, lest you make losses instead of profits.

    Navigating the Kenyan real estate market is easier with Property254 as your guide. Don’t miss out on expert insights and exclusive opportunities. 

  • Top Factors Contributing to the High Cost of Houses in Kenya

    Top Factors Contributing to the High Cost of Houses in Kenya

    You will agree with me that there is no more significant purchase an ordinary person will make than that of a house. Talk of personal cars or land, nothing exceeds the buying price of a home. But why is it so? Why are houses so expensive?
    Well, in this post, you’ll know the reason behind the tremendous price of houses. Over the decades, homes have been a bit cheaper compared to current times. So, what has happened over the last decades that has made houses very costly?
    Prices of single homes have greatly increased over the years. If you want to be a homeowner, you should have a lot of money to make your dream real. If you are not buying cash, you can find an affordable mortgage that you’ll pay between 15 and 30 years

    Factors Leading to Costly Houses in Kenya

    1. Skyrocketing population growth 

    Over the years, the Kenyan population has been increasing rapidly. As a result, most people move to urban centres in search of jobs and greener pastures, and they must rent or buy residential houses. 

    Since demand for housing is increasing, the builders are also growing, but at a lower rate than population growth. That’s why you will find that buying a house is so expensive nowadays.

    1. Housing regulations 

    When building a house, whether residential or for commercial use, there are several documents you must sign and adhere to several state rules.

    As a result, more people tend to avoid all the processes by just investing in other things like cryptocurrency. Therefore, that reduces the number of houses, given that the population grows daily.

    Afterwards, the available real estate investors raise their house selling prices because the demand will always be there.

    1. Increased land price 

    As you all know, the land is an appreciating asset, but the building itself depreciates as years go by, though it may take centuries if well maintained. 

    The land is an appreciating asset, and prices grow every time. As a result, those seeking land to build houses for sale will have to go deeper into their pockets. And that will result in an increased price of the completed home so that they can gain their profits.

    1. Increase in construction costs 

    We’ve seen the price of construction materials increase over the years, with the most increase recorded after the Covid-19 global pandemic. The imported materials had to come to a standstill/ decrease at some point because of international travel restrictions in fear of spreading the pandemic.

    That led to a higher scarcity of materials, increasing the prices of the available ones. Once the cost of the materials increased, the investors had to increase the house prices to maintain their profits.

    1. Brokers have exaggerated house prices 

    Nowadays, it’s rare to buy a house without the involvement of an intermediary broker. The brokers liaise with the actual investors to sell the houses on their behalf. Once there is an agreement, the broker gets their share of income, and the owner gets their share too.

    As a result, you’ll find that the house is more expensive than if you could have bought the house from the original owner.

    1. High advertising costs 

    TV channels charge real estate investors millions of money to place adverts on the screen. The more they want their advert to reach more people(depending on most watched programmes), the more they’ll pay. 

    Alternatively, if homeowners use public figures and affiliates for marketing their houses, they’ll still pay high advertising costs.

    So, the final price of the houses will be high. 

    1. Political instability 

    No one has forgotten how houses and people’s businesses got affected during Kenya’s 2007/2008 political saga

    Many people went bankrupt then after losing their most significant source of income. 

    It’s now over a decade, but investors are freaking out about investing in building houses in big towns. As a result, the demand for homes is growing, and the investors are few.

    So, the available houses are sold at a very high price. 

    1. Low-interest rates of mortgages 

    The average interest rate of mortgages in Kenya is 10.9%, which is not that high. People with stable incomes have sought to own their homes since they can manage to repay the mortgage.

    That increases the overall demand for houses. Hence, the home sellers increase the prices to achieve more out of their property. 

    The Bottom Line 

    Owning a home sounds good, but the cost involved pushes many away. That’s why you need to consider several factors before you get a mortgage.

    You can consider investing in real estate that will bring profits instead of buying an expensive home. Actually, you can retire at 40 with real estate investment. In some instances, a costly house is just a liability.

    Thinking of selling your home?

    Reach a wider audience of potential buyers. Get listed on Property254, Kenya’s leading real estate platform.

    Frequently Asked Questions

    1. How much is an average house in Kenya?

    An average home of 1 to 3 bedrooms is around Ksh. 15 million. While 4 to 6 bedrooms can cost above Ksh. 40 million.

    1. How much is a house in Nairobi?

    Houses in Nairobi can be expensive, costing Ksh.87 million and above, with the most expensive costing around Ksh.650 million.

    1. How much can it cost to build a two-bedroom house in Kenya?

    Building a two-bedroom house in Kenya can cost between Ksh. 500,000 and Ksh. 1 million. But that range can go high if the price of construction materials keeps increasing.

    1. Can I buy a house in Kenya as a foreigner?

    Yes, you can own a home in Kenya as a foreigner under your name. The 2010 constitution grants anyone to own a home, although some restrictions are involved.

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