Author: Peris Gachago

Property financing could be the only way to help you become a real estate investor without much turmoil. We all know that investing in real estate requires a lot of money, which you may never be able to save your entire lifetime.

However, you can invest in property if you have a steady income flow. All you need is select the best mortgage loan provider in Kenya to help you with your financing.

This guide will help you know the following:

• Mortgage loan meaning
• Types of mortgage loans in Kenya
• How to qualify for a mortgage loan in Kenya
• 5 best mortgage loan lenders in Kenya

The best loan providers we will discuss here have helped thousands of investors realize their investment dreams.

What is a Mortgage Loan?

A mortgage loan refers to money from financial institutions like Sacco and banks to invest in property or buy a home. In this case, you will get your dream house or invest in real estate. 

However, the property you buy stands as security against the loan. Therefore, if you skip multiple installments, the lender will repossess the property regardless of how much you’ve paid.

The more you pay your mortgage loan, the bigger your property equity grows. The good thing is that you can take another loan against the equity and invest in other businesses.

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In addition, you can also make profits if you get someone willing to pay a higher cost for the property. You will accept the offer, pay the mortgage in total, and then pocket the profits. 

Types of Mortgage Loans in Kenya

There are two types of mortgage loans in Kenya, fixed-rate and floating rate. The difference comes in the calculation of the interest rates.

1. Fixed-rate Mortgages

As the name portrays, these types of mortgages have fixed interest rates regardless of loan market changes. Nothing happens to your overal loan repayment if interest increase or reduces during your repayment period.

Your only advantage here is when the market interest rates increase since yours will not change. However, if the rates reduce during repayment, you lose the benefits big time.

2. Floating rate Mortgages

With this mortgage type, the lender adjusts the interest rates as they change. So if the rates increase or decrease, they adjust your repayment accordingly.

Your only advantage is when the market rates decrease for a more extended period since you will enjoy a low amount of installments. However, when the rates increase, you will pay higher installments.

How to Qualify for a Mortgage Loan in Kenya

To qualify for a mortgage loan in Kenya, you should have the following qualifications.

• A National ID or Passport
• A three months payslip
• Bank statements of at least one year
• An account with the mortgage loan provider
• An offer letter from the seller, including the prices
• A signed mortgage application form
• Letter from the employer for those employed, including the nature of employment, either permanent and pensionable or contract.

The 5 Best Mortgage Loan Providers in Kenya

These financial institutions will help you buy or build your real estate property at affordable rates.

1. Standard Chartered bank

The standard chartered bank helps you get several types of mortgages, such as

• Construction mortgages. This mortgage allows you to build property you like up to your desired standards. The bank disburses this mortgage as the construction takes place. And the good thing is youll pay interest on the disbursed amount.
• Mortgages to non-residents. If you are out of the country, you can take this type of mortgage to buy a home where you’ll settle when you come back home. This loan takes up to 20 years to repay.
• Home mortgages. You take this mortgage when you need to buy a complete home. 

Standard chartered bank gives you up to 25 years to repay your mortgage. The loan amount is up to Ksh. 100 million. The interest rates 

2. KCB bank Kenya

The KCB bank’s home loan enables you to buy or build your dream home. The bank also gives you a loan to buy or build commercial property for renting or reselling.

KCB bank has a property center at Aga Khan Walk, Nairobi, where you can visit to get insights about property buying or building. In addition, they have quarterly property tours in Nairobi and Mombasa metropolitan areas.

The bank has a developers club where investors meet to exchange valuable ideas in the industry. The membership fee to this club is Ksh. 12,000.

3. NCBA bank Kenya

NCBA bank can help you with a property loan up to 105%. This bank has an offer of 11.9% p.a up to December 31, 2022. This is among the cheapest mortgage rates in Kenya in 2022.

The interest is calculated in reducing balance, fixed in the first three years. You will have up to 25 years to repay your mortgage.

If you need a loan from this bank, youll fill out an application form and submit it with the requirements. Afterward, if the bank approves your application, they send their property valuer to know the exact price of the real estate.

4. Absa Bank Kenya

Absa bank has a wide range of property loans, such as buying or building home loans, equity release loans, remortgages, and loans for buying-to-let properties.

With re-mortgage, you can transfer a mortgage loan from another bank to Absa at affordable rates.

Absa offers massive mortgage amounts you can rely on to buy or build your dream home or commercial property. The interest rate is at 14%, but it’s subject to change in the future. Absa gives you a maximum of 25 years to repay your mortgage loan. You can calculate your repayments here.

5. Equity Bank Group Kenya

Equity bank of Kenya offers affordable mortgage and equity loans to non-residents. The minimum mortgage is Ksh. 2 million, and there is no maximum. However, the maximum repayment term is 15 years, which is lower than other banks listed above. 

In addition, Equity gives you up to 80% financing.

Bottom Line

Now that you understand more about mortgages, you can make informed decisions when applying for these loans. In addition, it’s essential to have very stable income sources to enable you to pay the mortgage for the required time.

Frequently Asked Questions

1. Is taking a mortgage a good idea?

Yes. It’s a good idea if you plan accordingly. It can help you possess more in a shorter period. We all know how saving money can be challenging. But with a mortgage, you’ll build equity as you pay the loan. That increases your networth within a short span.

2. What are the risks of taking mortgages?

An increase in interest rates can drown you financially if you have taken a floating-rate loan. In addition, you will stay in debt for more extended, and you’ll pay a lot of money as interest.

3. Can I pay my mortgage early?

Yes, you can pay your mortgage early. For instance, if you pay an extra installment each year, you’ll reduce the interest, overall loan repayment, and repayment term.

4. What happens after paying off my mortgage?

Well, you’ll have a higher networth since you’ll be the sole owner of the property. You don’t have to pay more money to the lender. 

Investing in income property in Kenya can be the decision away from gaining financial freedom. Property investment serves as a long-term solution to your financial needs.

But do you know how you should do it? Well, this guide explains how you can invest in income property in Kenya.

We have an actionable plan that has helped thousands of investors across the region.

Keep reading.

What is an income property?

As the name suggests, income property is meant to bring income to the owner. As a real estate investor, you can earn money with property in two ways. One is through renting to residents or commercial tenants. The other way is selling the property at a higher price, although this may take time before getting a reasonable profit. 

However, selling can be better since you’ll get your profit as a whole while renting might take years to realise your dream annual returns on investment. 

Step-by-Step Guide to Investing in Income property in Kenya 

1. Be sure of your finances. 

One thing you should know about property investment is that it requires a lot of money. That’s why you should be sure about the sources of the funds. A mortgage loan will do good, but you must have a stable income flow. 

Notify your bank that you need a buy-to-let property and your preferred location. The bank will assess your income statement to determine whether you can afford the mortgage. Afterward, you can go ahead with the next step. 

However, if you are buying your property for cash, you only need to keep your funds in one bank account to ease the transfer. 

2. Search for a property agent 

A property agent knows the ins and outs of all property listings in a specific location. For instance, if you need property in Nairobi, get an agent from where you plan to buy the property.

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If you are a new investor, let the agent tell you about the areas with high returns.

3. Choose the best location with a high population. 

The property agent should help you with this stage. They should help you search for a more populated area where you’ll experience an almost 100% occupancy rate.

Good areas for high returns include areas near colleges and universities and towns near the Nairobi CBD. 

In these locations, you can either buy to rent or buy to resell. Either way, you’ll still get the returns you need.

4. Search for property to buy.

A good property should be located in a place with all social amenities. These houses tend to attract more people to rent or buy.

The property should also be in good condition. Hire someone to check the roofs and the internal section of the house. If some places need some fixing, notify the owner about it. If they are willing to fix it, good, and if they are not willing, you can negotiate the buying price. The seller will accept the bargain since you hold the cards here, especially if it’s a buyer’s market. 

5. Do a title deed search. 

A title deed search should help you escape any form of fraud. Once you log into your eCitizen account, do a title search to see the property ownership history. 

Always request the seller for his property title deed and search for its authenticity. 

6. Send an offer to the seller. 

After you are satisfied with the quality of the property, you can notify the seller you are willing to buy. 

You can attach a proof of funds letter to your offer, which will draw the seller’s attention in case the bidders are many. 

7. Notify your bank. 

After you agree with your seller, it’s time to get funds. Notify your bank and give them the property details, including the price. 

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Most banks in Kenya will send their property evaluator to assess the property’s value again. You will cover the cost of this evaluator, but it will be calculated in mortgage repayment. 

If the bank’s evaluation agrees with the seller, you can go ahead to hire your attorney.

8. Get a real estate attorney. 

Buying property is a complex task. And sometimes, you may need to attend court sessions if something goes wrong with the property. 

A real estate attorney will draft legal proceedings of property transfers. In addition, they can attend court sessions in the future if anything goes wrong. 

9. Close the deal 

After everything is right, you can close the real estate deal. This stage is important because it makes you a new property owner. During the transfer of the property, you should have your attorney and witnesses, as well as a bank representative. The bank representative does the job of transferring the money to the seller on your behalf. 

10. Market your property 

You’ll need to reach new tenants for your property, so you should market it. You can use both free and paid advertisements. 

Whether you want to rent or sell your property, you should target the audience in your property’s location. 

Social media could be a good leverage to advertise your property to target clients.

In addition, you can use posters on nearby buildings and electricity posts to reach your next tenant or buyer. 

11. Manage the property 

If you aim to resell the property, you don’t need this step. However, you can still maintain the property to high standards before getting your preferred buyer.

Those who want to rent should hire a property manager to maintain their income property to high standards. You should also learn the 50% rule to help you in proper management. To get the best out of your income property, you should ensure you earn at least 2% of the total property price.

Summary 

Income property is a good way to create a long-term passive income stream. Property investment is an excellent way to facilitate your early retirement.

Once you follow the above guideline, you will make the best choice for your investment. 

Frequently Asked Questions 

1. Is income property an excellent investment?

Yes. Investing in income property is a great way to build a long-term passive income stream. Property is known for its appreciating nature. Therefore, you’ll profit from your income investment if you plan well.

2. Which is the best type of income property?

In Kenya, commercial properties generate a higher monthly income than residential properties. However, you should consider getting property in a highly populated area that will attract business people.

3. How do income property owners make money in Kenya?

The main ways of making money through income real estate are by renting or selling. Other ways include Airbnb, leasing land for agricultural purposes, and leasing to industry owners.

4. Can I make a living from property investment?

Of course, yes. You can create an income stream by building or buying rental property to generate monthly rental income. Once you get your monthly income, 50% should go to expenses. From the remaining half, pay your mortgage, and you’ll be left with cash flow. You can pay yourself and leave something for emergency needs concerning the property.

Long-distance property investment is possible in Kenya, but with the proper guidance. It’s possible to contact everything from property search to closing the real estate deal while you are abroad. You don’t have to book tickets to return home to facilitate a property-buying procedure.

Following the correct guide like this one can significantly help you avoid unnecessary losses after falling prey to fraudsters. Most Kenyans in the diaspora have bought homes, commercial properties, rental apartments, land for development, and other properties without visiting home.

The internet is good leverage and should help you get the best location to buy your property. Keep reading to learn how you should invest in property while abroad.

Guide to Diaspora Property Investment in Kenya

To succeed in long-distance property investment, you should start by joining diaspora Kenya investment groups on social networks. These groups could help you leverage the best locations to buy property in the country. Recently, Kenyans in the diaspora launched the Kenya diaspora investment fund to discuss investment ideas back in the country.

1. Research the best location.

The success of a real estate business largely depends on location. In addition, if you need a home to settle in when you come back, you should choose the best site with adequate security.

Consider areas with:

• High employment levels

For your residential or commercial real estate to thrive, you should consider buying in areas with high employment potential. As you all know, employment attracts many people from rural and semi-rural areas. As a result, the migrants will need residential houses to rent during their employment term. In addition, it’s rare to have vacancy rates in these areas.

• Growing colleges and universities

Colleges and universities attract businesses to the area. Therefore, a commercial or residential property could do well in these areas. Alternatively, you can invest in mixed-use property in these areas.

• Places with high population

Investing in Nairobi, Mombasa, Eldoret, Kisumu, and other big towns in Kenya with huge populations could see you succeed in your property business. Remember that these locations have a high house demand, so the returns are also good.

• Proper distribution of social amenities

No one likes to stay in places with poor distribution of social amenities. Parents would love to take their children to nearby schools. They would also like a steady water and electricity flow in the area.

Therefore, research on the internet about where you want to buy your property. A good location with a complete set of evenly distributed social amenities will attract more people to the area, hence more developments. 

• What is the vacancy rate of the current houses in the area?

Always research the number of vacant houses in the location you want to invest in. If the vacancy rate is high, research the reasons, and if you can improve your houses to fit tenant needs, you can try it. If the vacancy rate has to do with the distribution of social amenities, forget about that area. 

After choosing the best location, contact a licensed property agent in your preferred area. Property agents tend to know more secrets about listed properties than anyone else in the business. The truth is they have handled many buyers and sellers, and they understand why each property is listed for sale.

2. Contact your preferred seller.

After getting the best property to buy with the help of a real estate agent in Kenya, you can contact the owner. You could involve a trusted family member like a spouse to meet with the owner and assess the property’s condition.

You hold the cards here, so you should get pictures and videos of the houses you are about to buy. Set up Skype or Zoom calls to ensure that no one is playing mind games with you.

Ask the seller to send you the title deed document via mail. Afterward, open your eCitizen account and run a title deed search to ensure you are buying the right property.

3. Talk to your Kenyan bank.

You should contact your preferred Kenyan bank if you are getting a mortgage to buy your property. Most banks have special mortgages for Kenyans in the diaspora. In addition, you get a bank representative to reassess the property value to ensure no one is overcharging you. 

Alternatively, if you will buy the property with cash, you can make the transaction online via your bank’s online portal.

4. Get a property attorney in Kenya.

A property attorney ensures that all legal proceedings of property transfers are intact. Always contact a renowned legal firm to help you get the most experienced and trusted property attorney. 

An attorney can represent you in court if anything is wrong with the ownership of the property. Since you are away, an attorney should ensure that the property is successfully transferred to you. 

5. Let your attorney close the deal. 

The real estate attorney will close the real estate deal on your behalf. You can ask a family member to be present while signing the transfer documents if you wish. However, you can sign the documents electronically and send them your copy, thanks to the internet! 

This is the time you should do the funds transfer if you are buying in cash. If it’s a mortgage, your Kenyan bank representative should handle that.

After the successful transfer, request your attorney to send you the ownership documents to you electronically and to your diaspora physical address. The papers will be much safer with you than with anyone else. 

Now you own the property, and you have the documents. What next?

6. Hire a property manager.

You should hire a Kenyan property manager with experience in the real estate sector. Your diaspora Kenya investment groups should help you get the best property manager from their recommendations. 

Once you get your manager, your attorney can help you draft an employment letter and let the manager sign it before starting to work. 

7. Market your property.

With the help of your property manager, bring your property into the eyes and ears of potential tenants or buyers. The manager should supervise local advertisements like posters and word of mouth. 

You can also hire experienced copywriters to write social media Ads that will attract many clients. The good thing is you can monitor your Ads while you are abroad.

8. Get tenants.

This stage is the most interesting in Kenya’s diaspora property investment journey. Everyone loves to reach this stage as soon as possible. However, following the correct procedure is the only way to get you here.

Good tenants can help you get to the peak of returns on investment faster. After getting reliable tenants, Let them send their rent to your Kenyan bank. You can hire a virtual accountant to help you balance between expenses and help you determine your cash flow.

Another thing you should do is install CCTV cameras in and outside your property. You can get local installers with a simple Google search. The good thing with technology is you can get live feed on your computer or a phone while you are outside the country.

Summary

Indeed, it’s possible and easy to venture into property investment in Kenya while you are away. All you need is a perfect guide to help you actualize your investor dreams. 

Join diaspora groups of people who have invested successfully in the country. This way, you will get real estate mentors to help you in the journey.

Frequently Asked Questions

1. How much do I need to invest in property in Kenya while in the diaspora?

This depends on the quality and size of the property you are buying. Big properties need a huge mortgage downpayment of 20%. 

2. Is real estate investment in Kenya a good choice while in the diaspora?

Well, for it to be a good choice, you should research the best and most trusted property attorney to help in property transfers on your behalf. Real estate investment in Kenya is a good investment strategy to help you retire with a reliable passive income stream.

3. What real estate is most profitable while abroad?

Commercial real estate is a good investment strategy that has the highest returns in the real estate market. However, location determines everything, including the occupancy vs. the vacancy rate. Remember, you’ll get higher returns with minimal vacancy rates. 

Like any other business, you should have essential real estate investment skills to help you scale your property business. Of course, you need to master these skills before investing in the property business. 

Buying and managing a real estate business is not a walk in the park. That’s why you need actionable skills to help you thrive in the sector.

A real estate investor’s ideal skill set should help mitigate all risks involved in property ownership.

This post explains the skills you need to succeed in your property business, even if you are a new real estate investor.

Most successful property investors in Kenya possess the skills discussed in this blog. Therefore, be attentive to learn what other successful investors are doing.

7 Essential Skills a Property Investor Should Have 

1. Digital skills 

It’s underrated to say that the internet is good. Actually, we should say that the internet runs our daily activities. See, social media have proven to be most people’s online space to express ideas. For instance, Facebook alone has approximately 1.9 billion daily users, according to Statistica.

That means it is a good leverage for all business owners to capture their target customers in Facebook feeds.

That’s why you need digital skills to help you reach your target customers or tenants when needed. You can take free courses on digital marketing on sites like Coursehero, Hubspot, or Udemy.

2. Research skills 

Researching is a good skill for everyone. Who doesn’t like learning about new trends and what’s happening worldwide?

Well, as a real estate investor, you should know more about property investment before starting.

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You can get quality information from property investment social media groups. However, when using social media as a source of information, always give it the benefit of the doubt till you confirm from somewhere else.

Make use of Google and  YouTube to get investment ideas in locations you are interested in. However, you should only follow trusted bloggers and vloggers with authentic and verifiable information.

Top-notch research skills help you to know the ins and outs of buying real estate in Kenya.

3. Communication skills 

Proper communication is a skill that the majority of people don’t know how it can help in business. It costs nothing to be humble and listen to other people’s ideas. As an investor, you should possess this skill to help you in different ways in the market. You will definitely encounter the following.

• Tenants/buyers 

If you own an income property, you will encounter buyers or tenants in your journey. How you communicate with them determines how you will close the deals. 

Tenants or buyers are the biggest determinants of whether you will earn good returns on investment or not. 

• Other investors 

Other investors in the real estate industry can help you scale your business through referrals. However, bad communication skills can put them off, and you will be losing. Good communication skills can help you get long-term property partners with whom you can invest together.

Setting up a proper communication channel with your tenants/buyers and partners can help you scale your investment.

For instance, let your tenants or partners know where to reach you, whether it’s through calls, Messages, WhatsApp or via Mail. In addition, let them know the time they can reach you to discuss business.

You should always have a quicker turnaround in responding to your clients or partners. This strategy helps in building trust, and it results in building a huge investment empire. Your tenants should trust you to handle their needs. In addition, great communication skills help in improving your property’s quality and income through timely repairs.

4. Marketing skills 

Every business person needs high-quality marketing skills, including real estate investors. Once you have your property ready for buyers or tenants, you will need to get that first tenant or buyer. So what do you do?

You’ll need to tell your potential clients what they will benefit from renting or buying your property. Learn to convince them with words, and they will contact you for more details. Ensure your property is among the best in the area, and that will bring more clients with less effort.

You can market your property through paid Ads, social media influencers, TVs and Radios, and posters. 

5. Negotiation skills 

Everyone loves to be on the winning side in a negotiation. As a real estate investor, you should learn negotiation skills to help you get high-value clients without losing them. 

Always ensure your property is in good condition to be on the upper hand during negotiations. A good negotiation technique settles with a mutual benefit, and no one loses. 

6. Management skills 

Remember the managerial skills we learned in school? You will need them in real estate investment. 

You need to be a good problem-solver and decision-maker, possess excellent communication skills and be a good planner and leader.

You should manage your real estate business like any other business. Possess all the managerial skills to help you succeed as a real estate investor.

7. Patience 

Patience is a virtue that most people don’t have. Starting from controlling your anger to giving other people a chance to express themselves is a good way of exercising patience.

In real estate, don’t expect to earn good returns overnight. Don’t even expect to get tenants or buyers after the first attempt. Always give it time.

If you are not good at expressing patience in everything, you may make drastic decisions that may negatively affect your investment.

Therefore, you should learn to have patience in every step of your real estate investment journey.

The Bottom Line 

The skills discussed in this blog are a good asset to start investing in real estate. Remember, everything has a risk, that’s why you’ll need to have these skills to help you in proper decision-making.

Frequently Asked Questions 

1. What are the qualities of a good real estate investor?

A good real estate investor should be patient, have excellent money management skills, be a good researcher, have top-notch communication skills, and be a critical thinker.

2. What is the most important real estate investment skill I need before investing?

You need to be a good researcher. This will help you learn new industry trends and make proper investments in good locations. A good location is the biggest determinant of your success in real estate, which you get through researching.

3. What are the best skills a good real estate agent should possess?

A good real estate agent should be honest and have excellent communication skills, negotiation skills, listening skills, and the ability to learn new technologies in the property sector.

Investing in property is an excellent idea that produces long-term results. However, it can be tough to succeed in the sector without the best real estate investment strategies.

This article alienates the property investment strategies to help you make the right choices depending on your ability. People who have successfully implemented these strategies have made a fortune.

Keep reading to learn about the best real estate investment strategies you don’t want to ignore. 

Property investment strategies that work in Kenya

1. Choose the best location 

Your success in the real estate business, no matter the type, depends on location. Each type of real estate has its suitable location. 

For instance, a residential property may not do well near an industrial property due to emissions of gases harmful to the environment. So, no one would love to stay near factories. That’s why factories have designated areas in each city.

A good location determines the occupancy vs. vacancy ratio of your property. That’s why you should be so keen when choosing the location to buy real estate.

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2. Buy-to-let 

Buy-to-let properties are income-generating houses that you charge monthly rent. These houses can be for commercial or residential use. 

The good thing about buying to-let properties is that you won’t undergo the whole process of building the property. You will get property that is ready to start generating income. 

Buy-to-let real estate tends to bring in returns on investment faster than buying undeveloped land.

3. Consider Airbnb 

Airbnb is a modern way of earning through real estate. Actually, once you start an Airbnb business, you will earn more in a month than a typical residential house. 

If you have extra rooms in your house, you can get clients to stay on a short-term basis. Furthermore, if you don’t stay in your house that is near tourist attraction sites, you can earn money by renting to Airbnb clients. 

What makes Airbnb stand out in the real estate sector is that you charge your houses per day, not per month or year. That’s why it’s easy to earn lots of money with Airbnb.

However, the location of your house determines whether you’ll get customers. Mostly, Airbnb users are tourists visiting the country. And as you know, not every town has an attraction phenomenon. 

In addition, even when you have a house in a tourist attraction area, you won’t get clients throughout the year. For instance, Kenya’s coastal region is a tourist attraction site, but it’s rare to get someone on the beach during winter. 

4. What real estate brings the highest returns 

Do your research to know what type of real estate has huge returns. This real estate investment strategy will help you make the right investment choices.

Analyse the options you have after choosing a suitable location. Commercial real estate comprising retail stores, office spaces, and hospitality buildings goes hand in hand with residential houses. However, due to the business nature, commercial properties have high returns because of high rent rates. 

Work out the possible returns and cash flow of the property you want to buy. 

5. Consider buying undeveloped land 

Undeveloped land is cheaper than developed land with buildings. It’s even easy to save enough cash to buy land. 

However, the appreciation rate of land is different in all areas. For instance, the land appreciation rate in Nairobi differs from that of Narok. That’s why you need to choose your location wisely if you want to buy raw land. 

In addition, future projects can improve the appreciation rate of a piece of land. For example, since the announcement about the development of Konza city, the land in that specific area became expensive, and is still going upwards. 

However, you should research the authenticity of the mentioned project before investing in a bad location. 

6. Renovate old properties and resell 

An old property will definitely have a lower price than a new property in the same area. You can research the market value of the nearby houses to know the price range. 

Before buying an old property, also on the cost of building materials and repair services. This will help you know the rough estimate of renovating costs. 

The estimated repair costs plus the buying cost should determine whether you’ll gain after selling at the current market value in the area.

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7. Are REITs a good idea?

REITs are companies that enable low-income earners to invest in real estate without much capital. These companies pool investor funds to invest in residential, commercial, or industrial real estate. 

The investors earn a percentage of returns that these companies get, basically depending on the amount of money they have invested. 

If you want to begin real estate investment, REITs can be a good place to start because you won’t carry the burden of property buying and maintenance. You can learn through these companies till you are fit to buy real estate property.

8. Mixed-use properties 

Mixed-use properties mean that the property can be residential in one part and commercial in the other part. There are two main types of mixed-use properties:

• Vertical mixed-use 

This comprises vertical buildings with several floors. You can segment the floors such that the ground floor has commercial stores and the upper floors have residential apartments. 

• Horizontal buildings 

These buildings are common in Kenyan rural areas where businesses have the front side and residentials carry the back side. 

Due to different incomes from commercial and residential properties, a combination of both can help you realise your investment goals.

To Sum Up 

Now that you know the best investment strategies in Kenya, why don’t you go ahead with your investment plan? When done well, real estate investment can be an excellent long-term solution to your financial needs. 

However, never get tired of doing research, actually, it’s among the skills you should have as a real estate investor. 

Frequently Asked Questions 

1. Which is the most reliable real estate in terms of long-term financial freedom?

A rental property in a good location is suitable for long-term financial solutions. With a low vacancy rate, you will earn a regular income for a long time with little effort, just maintenance once in a while.

2. What is the fastest real estate strategy to earn money?

Buying to renovate and resell is the fastest strategy to get your return on investment faster. However, to succeed in this strategy, you must be good in marketing and financial planning to ensure you don’t make losers instead of gaining.

3. How do beginners make money in real estate?

Being a beginner investor has its set of risks. That’s why it’s advisable to start with less risky operations such as earning a commission by renting an investor’s property on Airbnb, REITs, and managing other people’s property. These strategies can help you earn as you learn how the business is done.