Buying a house is one of most people’s largest investment decisions and usually has a big financial outlay. As you make one of the most important financial decisions, knowing what do no and not to do is key. The process of buying a house in Kenya can be challenging more so when buying a house for the first time. Whether you are a foreigner seeking to buy a house in Kenya or a citizen, there are several steps, tasks and regulations you need to be aware of to avoid making an expensive mistake. To ease your anxiety and ensure you are on the right path, we have created a step by step guide to buying a house. Whether you are a seasoned real estate investor or a beginner in real estate, the top 5 factors to consider when buying a house in Kenya are:

1. 1.      Determine your real estate investment needs.

2.      Determine the available budget.

3.      Selecting a real estate agent.

4.      Analyzing the property market and selecting a house

5.      Making an Offer, Negotiating and Transfer.

1. Determine your real estate investment needs

As you start looking for a house to buy, determine your wants and both current and long-term needs. If you plan to expand your family, you should consider buying a house with an extra room to grow into. For instance, if you are living in a one-bedroom house and plan to expand your family, the best option is to search for not less than a 2-bedroom house. As buying a house is a long-term decision, this helps to ensure you can live in the house for some time before the need to move arises.

Make a consideration of the amenities that you need the neighborhood to have. Some factors include schools, access to public transport, parking, entertainment spots, shopping malls and your social network. Consider factors like schools if you have or plan to have kids. Ideally, houses should be close to good schools so that the commute for kids is easier. If you drive a car and you are buying a house to live in, then you should only buy a house with a designated parking. If you do not drive, then the house should have ease of access to public transport.

 As you think though your decision, consider the house type that best suits your needs. This could range from apartments, bungalows, villas, townhouses or whether you prefer a single or a multiple dwelling house. Also consider if you prefer to live in a gated neighborhood.

Itemize all the features that your house should have. This is for both must haves and good to have features. If you have an idea of sizes, itemize these as well. Some features could range from swimming pool, front and backyard, electric fence or the finishing as well. If you need a house with a certain type of roofing, have that itemized as it will make the search faster.

Once you identify your needs, factor in some flexibility as well because other considerations like price could affect some of the items you have identified. Determine what the property you buy must have and what you can do without while still ensuring that the final house you purchase fits both your needs and wants as closely as possible.

2. Determine the available budget

We have now determined our needs and to narrow down our search further, you need to have a look at your finances. How much money do you anticipate spending while buying your house? If you are unsure of the amount you need, you can use a mortgage calculator to determine the price range to operate within. This is one of the available home mortgage calculators to assist you figure out what you can work with as a price point. This will help determine readiness to move ahead with the process of searching for a house. Determining the available funds allow us to assess ability to pay for both upfront and any recurring costs associated with the purchase of the house. Most people buy houses in three ways- either through cash, mortgage or through an off-plan purchase.

If you are buying on cash, consider if you have all the cash needed or a top up is necessary. Saccos and banks offer unsecured and secured loans which can help bridge the gap between the savings you have and the cost of purchasing the house. If you plan to buy a house in cash, you may also consider liquidating some of your existing investments to ensure you have the full cash amount needed.

If you are using a bank issued mortgage, its advisable check out several banks offers before settling on a lender. Banks have different offers on amount they can pay for a house with banks offering up to 105% financing on properties for sale. The 5% is meant to cover stamp duty costs payable to the government and other government fees.  Some banks require you to meet certain upfront costs like a down payment while others offer to pay all fees from legal, transfer and stamp duty costs. Banks also differ on loan terms, interest rates and processing fees. You need to ensure that the rates offered are the most advantageous you can find.  

Other than the purchase price of the property, consider stamp duty costs in Kenya. It is the responsibility of the buyer to pay the stamp duty.

There are many companies currently offering off plan purchases. The way this works is you make an initial deposit and then make the remaining payments within a given period as construction progresses. This method has the flexibility of getting a house at a relatively affordable price while offering affordability. There are however risks with delayed completion periods and developer integrity that have made this a sub optimal avenue for most first-time home buyers.

After you buy a property, you will also incur additional costs like moving costs, furniture costs and purchasing new appliances to make your home comfortable. You may also need to make a few renovations on the property. Include these as well in your budget.

3. Selecting a real estate agent.

While reading the blog articles like First-Time Homebuyer’s Guide helps, it may not be specific enough for the market you are in.  it is very important to have someone guide you in the process of buying a house. This could be a friend, family member or a real estate agent.  Our recommendation is to have both a real estate agent and a trusted person to work with. if you do not know a real estate agent, you could ask friends and family members for references. An online search also helps but you would then need to do a background check

When choosing a real estate agent, find someone with the right experience, local knowledge and you can click with. An agent helps to their extensive network and can alert you on even property that have not been advertised yet. A good agent should communicate with you as often as needed.

Check on the real estate agents negotiating skills. If they are good negotiators, this will be critical in ensuring you are able to get the best deal from the property purchase act as the advocate for you and your interests throughout the process of purchase. An experienced agent helps you prepare the correct paperwork and protects you from minefields that you could encounter if you go it alone. Most agents are conversant with the process of buying and selling a house which leaves you to concentrate on working on the finer aspects of the actual house you need and not the process.

4. Analysing the Property Market and Selecting a House.

Now that you have nailed down your budget, house specifications and have an agent, it’s time to start the legwork. The first option would be to use online real estate listing platforms in Kenya to start your property search. On the online listing platform, filter homes that are available for sale within your preferred neighborhood and for a price you can afford. Online platforms help compare prices with other houses within the neighborhood. Review the photos available and see if any of the houses appear within your preferences.

When reviewing online listings, a description of the house for sale is key. Lok out for description on the number of rooms, bedrooms and bathrooms to know if this meets your needs. Most agent explain other factors within the description like finishing’s, whether in a gated estate or not, parking availability, Wi-Fi and cable internet availability. This description will help you narrow down your options and save you time.

The real estate agent will support you to identify properties that are not on listing platforms. Most agents have a network they can call or are members of various online platforms for real estate providers.

When you have time, take a walk or drive within the preferred neighborhood.  Look out for any for sale signs and make enquiries. As you make visits to various houses make reviews on items like space, lighting and finishes on the house. Your agent will support you inspect the house for any defects.  While there are so many unscrupulous agents and conmen, ensure that your real estate agent accompanies you to any property that you want to view. Additionally, do not make any deposits or payment for potential properties before enlisting the services of a conveyancing lawyer. As you make these tours, determine how the neighborhood feels in terms of safety and security. Assess the noise levels as well. Visit the neighbourhood at various times of the day to determine how safe it is and how comfortable you feel at night. Do a morning drive to help you estimate the time needed go get to work to ensure that you can deal with the commute daily. For schools, check when kids are picked and dropped off.  Speaking to neighbors about this really helps.

When deciding to buy a house, you must take advantage and use both your emotions and trusting your instincts. Use your emotions to make sure you are buying a house that you love. As you will be spending a lot of time in the house, falling in love with the house is advisable. Use your instincts as well. If you feel the house is overpriced, get a professional valuer to give you a better assessment of price.

5. Making an Offer, Negotiating and Transfer.

Now that you have viewed several house options and decided on the house to buy, the final step is making an offer to buy.  When making an offer to buy, consider your budget, the original price offered for purchase, agents price advise, valuer price and what you consider to be reasonable and a fair market value of the property.

Make an offer to the seller and include any conditions that you want included. These conditions include any repairs needed, amount of deposit needed, documents that you need for due diligence and any payment terms that you. The seller will either accept your terms or negotiate on them. This process of offer and counteroffer continues until you either reach a deal or decide to call it quits. Make sure your agent negotiates on your behalf and remember you can always change agents if you feel the real estate agent is not supporting you to make the best deal for you.

When making any purchase deposits, ensure you have guidance of a lawyer conversant with the conveyancing process in Kenya. This lawyer will support in the due diligence process of property transfer.

 Conclusion

The process of buying a house to live in can be a daunting task and is not for the faint hearted. However, you have not worked hard to fail at the finishing line. There are many companies in Kenya that offer conveyancing services which makes the process of buying a house easier. Most lawyers understand the conveyancing law and practice in Kenya and you don’t have to worry about this.

In case you need legal support, go ahead and contact us on 0726982982.

“Niko na kaquarter Kangundo Road must be one of the phrases that come up often when friends call out for a chilling time at economical and affordable hotels in town. Many Kenyans would then get motivated to own either a piece of land or a house along this area. What is it about Kangundo Road that attracts real estate investors?

Location

Kangundo road is located in Machakos County. The distance from Nairobi to Kangundo road is about 67km depending on which part of Kangundo road you are going into. it is one of the areas that is fast growing.  Consists of areas such as Joska, Kamulu, Malaa, Kantafu and Ruai among other neighboring areas. The area is about 30 minutes to 1-hour drive. This makes it considerable for people working in the city to commute. Lands in these areas are affordable and come with ready title deeds.

Development

This area is rated high when it comes to development. In terms of land, it rates higher than the average appreciating value in other parts of the country. It has a higher demand in terms of property-houses and land. It is one of the areas that is suitable for short or long term investment. It is also associated with great infrastructure such as roads. Outering road has been a pillar to this region hence ease the traffic in and out of these towns. The Machakos County Government has also constructed roads, including from Daystar University to Kangundo-Mlolongo interchange and Kenya Meat Commission to Joska. It is also a center for commercial businesses. Banks are also part of these towns and the area is characterized by several retail shops.

Amenities

There are several amenities in this area. These include, schools, hospitals, churches, supermarkets among others. The nearest renown hospital is Mama Lucy Hospital. The area has also no dominant community living in it but rather has a mixture of different communities. These areas feel like a city away from the city, that is, you get all you would need from the city at the area without the hustle of coming to Nairobi town thus making it convenience. These amenities come along with modern technology and standards.

Value of property

The value of property in Kangundo Road has been on the rise for the past few years. Initially, parcels of land did not have water provision and electricity. At the moment, they are readily available. This makes it easier for construction as well as easier in acquiring the basic needs. Research shows that Kenyans have been looking for some quiet and peaceful areas and the rate of migration from near the city to Kangundo road has been on the rise. The houses/apartments in Kangundo road are less than 3 million making it convenient and easier for young starters to have shelter for their families as it is affordable. The area is also known with great security as the estates have employed security guides to watch over them.

Bottom Line,

Kangundo road is one of the attractive places to invest in right now. It has shown potential of appreciating in value of the property and it will neither be going to drop its value soonest. The best time to invest in real estate and especially Kangundo Road is now.

The process of buying land or a house in Kenya takes an average of three months although some transactions may take longer while others can be much quicker. The process of finding and buying land can be quite the daunting task and we want to detail it for you. This guide contains the ultimate tips to consider when buying land or houses in Kenya. We shall be providing a step by step process to owning property in Kenya and hope that this will be a checklist and a guide that makes the land buying process less intimidating. 

As a background. the real estate industry in Kenya is governed by the Estate Agents Act Cap. 533 of the Laws of Kenya. The Act provides for the process of transfer of property and the registration, professional conduct and remuneration of persons who participate in the selling, purchasing or letting of land and buildings.  

Top five Factors to Consider before Investing in Property.

Many people invest in real estate because the general trend of property is that it increases in value. As such, your returns are guaranteed over some time. It is important for you to understand these factors before you invest in real estate.

1. Purpose

Before purchasing either land or a building, the first factor is to determine why you are making the purchase. For land, consider factors like: – Is it for immediate settlement, immediate construction or for speculation purposes. Are you purchasing for your use or you would like to resell?  The same case applies to purchase of a house. Will it be a house for you to live in or a house that you may want to rent out?

2. Type

Once the purpose is determined, you then must consider if you are making a commercial, residential, agricultural or an industrial property.  Commercial properties are generally used as outlets for sale and purchase of goods or services or for use as offices. Commercial properties are usually more expensive than residential property and attract different taxes and this impacts on your budget. For houses, additionally consider whether you need to purchase an apartment, townhouse, bungalow or a house with a separate servant quarter.

3. Budget

The budget you have available determines the locations you can afford including the size of either land or building. The budget should be enough to not only cover the purchase price, but sufficient enough to cover taxes, agents commissions and the legal costs of conveyancing.

4. Location

Location is usually the biggest determinant of price. If you are purchasing hoping for returns from increased sale price, then you would need to select property in an area that is experiencing or is expected to have a high price appreciation. If you are purchasing a house to live in, then you must consider a location that is easy to commute, is secure, have social amenities and factors like schools and availability of transport.

5. Property Tenure

In Kenya, there are two main forms of property tenure. These are free hold and leasehold interest. Freehold property gives the owner absolute ownership of the property and does not attract ground rent. Leasehold property confers to the owner a limited period to own the property which can be extended. As evidence of ownership, the government issues buyers with a Certificate of Title for freehold and a Certificate of lease for leasehold titles as a primary evidence of property ownership. Article 65 of the Kenyan Constitution limits foreigners to holding only leasehold titles for a maximum of 99 years but permits future renewals on condition that the subject property held under that title is economically active and it is not required for public use purposes. Any title that is on freehold that is purchased by a foreigner, a company not wholly owned by Kenyans or property held in trust whose beneficiary is not Kenyan changes to leasehold.

6. The current condition of the real estate market in Kenya

Conditions in the property market change from time to time. If you are selling a house, high property prices are a good condition. On the other hand, if the property prices are low, it is a good time to buy and a bad one to sell. Thus, before you invest in some real estate in Kenya, perform some research to find out the prevailing market conditions.

The Key Steps in the Process of Buying Land in Kenya

The steps below are the definitive steps to follow when you are finally ready to make a purchase. We have through our experience identified and itemized the steps needed to buy a home or land in Kenya. These steps identify the process followed to buy land which is the same as the process of buying a house in Kenya. Whether you are buying land from an individual or buying land in installments from a company, consider the steps below.

Step 1. Land Identification

After you have decided of the size, location, budget, purpose and the property tenure needed, you then need to identify the land or house you need to purchase. Most purchasers start their search online by visiting listing websites. You could also reach out to any reputable real estate agents that you may know. If you know any friends who have purchased real estate property, you may reach out to them for advice and guidance. Once you have been provided or seen proposals that meet your criteria, you then plan to conduct a physical visit to the land or house to confirm the basic details. When you visit the land, you should ask neighbours questions about the seller or history of the land. s well as whether there are disputes over the land. Neighbours are well placed to alert you on any existing boundary issues, family squabbles, if the land has been subject to multiple sales, if the land has been set aside for public utilities or such valuable information.

At this time, you may want to verify that the agent is authorized to deal with the property if you haven’t met the owner. Such agents will be having an authority to sell letter from the owner. In case its needed, as a buyer, you may make a formal expression of interest/ offer subject to contract detailing a few details like price, terms of payment and advocate details. If the offer is accepted by the seller, then the agent prepares a Letter of Offer (LOO) confirming the salient details of the agreed transaction. This is then signed and acts to formally instruct the legal teams of both parties but is not legally binging until an agreement is in place.

Step 2: Conduct a search in the land’s registry

If you are satisfied with the price, location and the other factors identified above, you then request details of the land and details of the owner so that you can conduct a search for the land’s records in the registry at the county office.  The copy of the title will be used to conduct a search of the land at the lands office while the copy of the national identity card will be used to verify the identity of the seller at Registration of Persons Bureau. The search is needed to ascertain ownership, check if the property has any encumbrances and confirm if there are any accrued rates. The cost of these checks will vary from county to county. Search results will help you confirm the current ownership, location, size and any caveats attached to the land. This search process will normally take three days.

While at the land registry, purchase for a nominal fee a copy of the land map. You will need 2 maps from the ministry of land or a local surveyor. One map is an overview of the land and adjacent plots while the other is drawn to scale.  With the two maps, you then engage a surveyor to verify the dimensions of the land and confirm if the land beacons are there and whether these beacons are correctly placed.

Step 3: Preparation of offers and price negotiation

Once you have finished your search and verification process and are satisfied with the search results, you can then engage a lawyer to prepare an offer. The lawyer will then prepare an offer letter detailing the terms of sale. The sale agreement is normally drafted by the seller’s advocate and presented to the buyer’s advocate for review and approval.  Please ensure that all key details discussed orally are included in the contract. The seller might ask you to pay some deposit, but it advisable to wait till you get clearance from the Land Control Board. If a deposit is agreed on, you may then deposit the agreed upon amount to the seller’s advocate’s account.

Step 4: Clearance for the Land Control Board

The Land Control Board is comprised of county commissioners and area elders who hold forums to ensure that land transfers in the area are transparent and that the land is clean and not either communal land or subject to a land tussle. Most land boards meet monthly, but an expedited review can always be arranged for an additional cost.

Once you have been cleared by the LCB, depending on the land tenure regime, the land rates and rent if unpaid will need to be paid so that you can obtain the Clearance Certificates.  Once this is done, you are now free to make the payment for the land you are purchasing and get signed transfer forms from your seller.  

Upon receipt of the complete documents from the seller, you are obligated, in exchange of the documents, to pay to the seller the entire balance against the land through his advocates to finalize the registration of the documents.

You should then take these documents alongside the sale agreement document, clearance from LCB, land rates clearance from the county, land search documents, your national ID, KRA Pin, 3 passport photos and the old title deed to the ministry of land.

Step 5: Transfer of Ownership

You should use the valuation form to apply for valuation by the government valuer. The Government Valuer will visit the property to ascertain the value of the property for stamp duty assessment after which you then pay this amount to the Kenya Revenue Authority. To pay the stamp duty, you will require both the transferor and transferee PIN. Depending on the value of the property, a Capital Gains Tax may apply.  It is your responsibility to pay the stamp duty.

Stamp Duty is charged on the property value or the purchase price agreed upon; whichever is higher and is:

4% for land/property within a municipality

2% for agricultural land or property outside a municipality

1% if a property is registered as a company and transfer is by way of shares rather than title Legal fees:

VAT is payable on the acquisition of trading commercial property. The current prevailing rate is 16% of the purchase price. This is in addition to paying the Stamp Duty.

Buyers are generally responsible for the cost of registration of titles in their name(s). Once the registration process is complete, the legal ownership of the land will have legally changed hands.

The certificate of title issued by the Registrar upon registration, or to a purchaser of land upon a Transfer by the seller is taken by all courts a evidence that the person named as the proprietor of the land is the absolute owner.

Step 6: Post purchase activity

Each party pays for their own legal fees based on a percentage of the purchase price on a scale stipulated in the Advocates Remuneration Amendment Order, 2014. The law also provides that agents must be paid the agreed service fee/commission if they successfully introduce a buyer to the seller or acquire a property for the buyer. The agent is paid by the party who instructs them; either by the seller who instructs the agent to market their property or the buyer who instructs the agent for a property acquisition. The fee is on a scale capped at a maximum of 3% of the property’s value.

It is important to follow up after one week and conduct a search to ensure that the property details at the ministry of lands are now showing you as the new owner. Once you confirm the details, you can now consider fencing the land and notifying neighbours of the change in ownership. Fencing will restrict encroachment on the land.

I hope the above step by step instructions help you in purchasing your next property. In case you have any questions, do not hesitate to reach out to your real estate agent, advocate or let us know. You may also comment below, and other community members will be on hand to offer you their thoughts.

Buying land is one of the biggest financial decisions you will make in life. You need to make this decision with all the details necessary to safeguard your money. There are so many stories of people who lost their money and I do not want you to be one of them.

I have listed below the key steps to follow when you are finally ready to buy land.  Whether you are buying land from an individual or a company, follow the steps below.

1.       Land Identification.

2.       Conducting Due Diligence.

3.       Offer Letter and Signature.

4.       Obtaining County Clearance.

5.       Transfer of Ownership.

Step 1. Land Identification

The first step is you need to determine the size, location, budget, and purpose of the land that you need to buy.  If you need to buy land for building your home, then this is residential land. Commercial land is where you can put up a rental property. Agricultural property is used for farming. In Kenya, we also have areas that have been zoned for industrial use. The article below gives you more details.

Important: Categories of RealEstate in Kenya

The budget determines the location and size of land you can afford. Generally, bigger land sizes attract a higher price. Locations close to towns or social amenities attract a higher price.

Nowadays, most people start their search online. Here is a list of 7 real estate listing websites in Kenya. Other people rely on real estate agents. The agents browse these listing platforms and narrow the list down for them. If you have friends who have purchased property, you may reach out to them for advice and guidance.

Once you have identified land that meets your criteria, plan to conduct a physical visit. This visit will help you check the surrounding area and the layout of the land. I have seen cases of people buying land in swampy areas because they never made a visit. Visiting the land will help you also see the layout so that you do not buy land that is too steep and will be hard to build on.

When you visit the land, ask neighbors questions about the seller or the history of the land. This will help you identify if there are disputes over the land. Neighbors are well placed to inform you of any boundary issues or any family squabbles.

If you are dealing with a real estate agent, please verify that the agent has the authority to sell the property. There are instances of agents selling land yet the owner did not ask them to.  Agents usually have the authority to sell letters from the owner. For some properties, this letter is not issued particularly for the lower end of the market.

Related: Letters of Authorization to sell in Real Estate with an example.

Step 2: Conduct a search in the land’s registry

Once you decide on the property you intend to buy, ask for the title deed and details of the owner. The copy of the title deed helps to conduct a search of the land at the land office. A copy of the national identity card is used to verify the identity of the seller. You can verify the details at the Registration of Persons Bureau.

At the land office, you will use the title to confirm ownership of the land. Additionally, you will learn if the property has any claims or has accrued land rates. The cost of these checks will vary from county to county. This search process usually takes three days. Fr properties in Nairobi, searches are being done online through Ardisasa.

  How to Conduct Property Search through Ardhisasa

You do not need to visit every county to get a search done. Your real estate agent  or lawyer can do that for you. Searches cost around Ksh 500 and under if you are doing it yourself. Agents and lawyers may charge Ksh 2,000 to help in the process.

Guide to the procedure for amalgamation of plots in Kenya

While at the land registry, you can buy 2 types of maps. One map is an overview of the land and adjacent plots while the other is a map drawn to scale. With the two maps, you then engage a surveyor to verify the dimensions of the land. The surveyor will confirm if beacons are there and replace any missing beacons. They will also ensure that all beacons are in the correct location. The standard cost of placing beacons is less than Ksh 5,000 per beacon. For a plot with 4 beacons, the price will be about Ksh 20,000.

 
Step 3: Preparation of offers and price negotiation

If you have verified all details, you then make an offer. If you are not a real estate expert, we recommend that you engage a lawyer to prepare an offer. The lawyer will then prepare an offer letter detailing the terms of sale.

You will need to meet costs for your lawyer. These costs are based on a percentage of the sale price. The Advocates Remuneration Amendment Order, 2014 provides the scale.

Please ensure that all key details discussed are included in the contract. The agreement may include the need to pay a deposit. Deposit if any should be made to the seller advocates account. It is advisable to wait for clearance from the Land Control Board ( explained in the next step) before paying any deposit. This ensures that if LCB does not approve the sale, you can get your money back.

Step 4: Clearance for the Land Control Board

For the sale of any land to occur, there must be approved by the local land control board. The board exists to ensure that land transfers in are transparent. This includes ensuring that the land being sold is not communal land or subject to a land tussle.

Membership to The Land Control Board is comprised of county staff and area elders. The boards usually hold monthly meetings. Special board meetings can be held but for an extra cost.

Once you have been cleared by the LCB, you will need to pay for land rates. Once you make any rates that are due you will be issued with a Clearance Certificate. At this point, you can make the payment for the land and get signed transfer forms from your seller.

You now have several documents needed for the title transfer process. These are:

•   Title deed

  Land search

  Land transfer forms

  Sale agreement

  Board clearance

  Rates Clearance Certificate

Step 5: Transfer of Ownership

When you apply for a transfer of ownership, a valuer will visit the land and place a value on the property. This value may be different from the amount you paid. The value determines the stamp duty payable to the Kenya Revenue Authority.

Depending on the value of the property, a Capital Gains Tax may apply. It is your responsibility to pay the stamp duty. This is paid by the seller. Stamp Duty is charged on the property value or the sale price agreed upon; whichever is higher and is:

4% for land/property within a municipality

2% for agricultural land or property outside a municipality

This article explains RealEstate Taxes in Kenya. Refer to this detailed guide on Stamp duty payment for real estate transactions in Kenya.

You will be responsible for the cost of registration of titles in your name. The county governments will review the submitted documents. if the documents are complete, a new title is issued.

https://www.youtube.com/watch?v=BxvT-qT-7R0&t=70s

Post-purchase activity

The law also provides that agents must be paid the agreed service fee/commission. The fee is on a scale capped at 3% of the property’s value. The agent is paid by the party who instructs them. The seller will pay the agent they instructed to market their property. the buyer will pay the agent who linked the buyer to the seller.

Related: Real Estate Agents Remuneration in Kenya: Understanding what Commissions to Charge

It is important to follow up after one week and conduct a search the same way you did when buying the land. This will help you confirm that the property details at the ministry of lands are now showing you as the new owner.

You may consider fencing the land and notifying neighbors of the change in ownership. Fencing will restrict encroachment on the land. The neighbors will also help ensure no one tries to sell the land without your consent.

I hope the above step-by-step instructions help you purchase your next property. In case you have any questions, do not hesitate to reach out to your real estate agent, advocate or let us know. You may also comment below, and other community members will be on hand to offer you their thoughts.

What are the Requirements for a Foreign National to buy a piece of land in Kenya?

Are you a foreigner wondering how to own land in Kenya? The legal process of buying land in Kenya remains the same whether you are a Kenyan citizen or a foreigner. There are a few restrictions. Please read this blog that covers the procedure of buying land as a foreigner.

Are you looking forward to making prime commercial or residential developments within the Nairobi metropolis where land sells for under Ksh1, 000, 000? Well, if yes, then this is the right article for you, as I have listed 7 different areas that you should consider checking out in this quest.

1.   Kangundo road.

Kangundo road should definitely be your fast destination as there are plenty of vacant plots for sale in different areas. It is located 19 kilometers from Nairobi Central Business Division (CBD).

Some of these areas you can choose from are; Kamulu, Joska, Malaa, Kantafu, and Ruai which are all along Kangundo road route. In these areas, a 50* 100 plot of land goes from as low as Ksh500, 000.

2.   Kitengela.

Kitengela is located in Kajiado County 19 kilometers from Nairobi CBD in the southern side. It is one of the fastest-growing towns in Kenya. In areas such as Acacia, KAG area, and Nonkopir youcan get a 50*100 plot of land from as low as Ksh650, 000. Due to the availability of land in Kitengela, its proximity to Nairobi town, availability of all essential amenities, and security, Kitengela has some of the best places to buy land in the Nairobi metropolis.

3.   Juja farm.

Juja farm is located approximately 39 kilometers from Nairobi town. Administratively, it lies within Kiambu County, Juja constituency, and Juja ward. Here a town-size plot of land (50*100) goes from as low as Ksh450, 000.

Juja farm is one of the fastest growing towns in Kiambu County due to several reasons, among them, being, the availability of all essential amenities and the expansions of roads such as the 30 kilometers Juja farm road.

4.   Kiserian.

Kiserian is located 28 kilometers from Nairobi town. It is in Kajiado County at the boundary of Kajiado west and Kajiado south constituencies. In areas such as Corner baridi, Ewuaso, Birika, Oloirien a 50* 100 plot of land goes from as low as Ksh500, 000.

5.   Ngong.

Ngong is located in Kajiado County 34 kilometers from Nairobi town. It is among the fastest-growing towns in the country. In areas such as Ngaroj, Olmaroroi, and Kimuka, a 50*100 plot of land can go for as low as Ksh450, 000.

6.   Ongata Rongai.

Ongata Rongai is located in Kajiado county 18 kilometers southwest of Nairobi town. In areas such as Kandisi, Tuala, and Rangua a 50*100 plot of land goes from as low as Ksh700, 000.  

7.   Athi River

Athi River is located in Machakos County, 27 kilometers from Nairobi town. It is named after the Athi River, which passes through it. The town is also known as Mavoko town.

A 50* 100 plot of land here can go from as low as Ksh600, 000.

Conclusion

Nairobi town is among the fastest-growing cities in Africa. The demand for land in or close to the city is very high thus the price also goes too high. Due to this reason, most people prefer to build or settle in less expensive satellite towns.

Buying land is a lifetime decision that should never be made in haste. It is always advisable to do thorough research and I hope this article was of great help in your first step of deciding where to buy land around the Nairobi Metropolis.

To ease the process of hunting for a plot of land,  browse listings made by the most trusted sellers in Kenya on our website.

Millennial home buyers have entered the housing market in a big way and are beginning to make up a bigger population of homebuyers. This trend is bound to continue. Now is the perfect time to invest in this target audience by customizing your properties for sale to appeal to their expectations, needs and wants. Following these tips will help you with more bids from potential buyers, and possibly sell your home quickly and for more money.

Below are some tips to follow that will help you sell more homes to millennials.

1.       Be available online.

2.       Take good listing photos.

3.      Build Smaller Houses

4.       Adding Smart Home Technology 

5.       Adding a Home Office 

6.       Utilize Open Plan Spaces

7.       Choose Low-Maintenance Materials

8.       Pick the right Location

1.   Be available online.

Most millennials start their search online. Your online profile is the first impression they will have of you. Having a Facebook page is an easy start where you can list your properties. We have created a guide on best practices that you can use as a real estate agent.  

A website will also help where you can provide more details about you or your company. We have several websites designs we can share with you, just contact us.Millennials like using their phones to search for real estate. Therefore, always make your listings are well seen on phone.

2.   Take good listing photos.

As more people start their search online, having good property photos will create a good first impression and increase the chances of potential buyers coming in person. To appeal to millennial visitors, ensure you have high resolution images on your listings. Remember, this loves technology and the more up-to-date and advanced your website looks, the better.

3.      Build Smaller ‘Green’ Houses

Millennials prefer small size houses. Apartments are thus getting more buyers than bungalows. Millennials realize the benefits of smaller homes: less maintenance, fewer expenses, and more energy-efficient. For new builds, millennials prefer a well-designed, smaller home that’s functional for their lifestyle. Remember to make the home eco friendly.

4.      Add Smart Home Technology 

Adding technology to the home will excite millennial buyers into purchasing your home. Ensure the home has amenities like Wi-Fi or cable internet. Other items like cable TV are a must. You could also have smart technology on appliances like security that allow homeowners to conveniently control their home from anywhere as well as reduce their energy bills.

5.      Add a Home Office 

With more and more people working from home, adding space that can be double up as a home office is a plus to many millennial homebuyers. Creating this space allows these millennial homebuyers to have a designated area where they will be able to work from home easily and comfortably. 

6.      Utilize Open Plan Spaces

Open plan living isn’t a new thing, but millennial home buying trends are making it more popular than ever. Millennial home buyers in Kenya love socializing and hosting their friends. They are then attracted to large, open spaces that can accommodate a group of people where they can mingle with, have fun. When building homes with millennials in consider the idea of an open kitchen and a nice spacious living area. Tear down a wall or two to create a more open look.

7.      Choose Low-Maintenance Materials

Millennial homebuyers are interested in low-maintenance homes. Millennial homebuyers in Kenya do not want to spend their time on significant repairs, home-maintenance or even cleaning their homes. They prefer things that will last and are easy to maintain. For example, they often prefer wooden floors that are much easier to keep clean than carpets. The key is to balance gorgeous decor with low maintenance. 

8.      Pick the right Location

Real estate is always about location. Millennials are a generation of convenience. Besides the features of the houses you are selling, young people will always consider the location they will be moving to. They always love places where they can engage in different activities, good attractive things like the gyms, restaurants among many more. At times they would prefer taking public transport. Consider how easy is it to get public transportation in the area. Is the house located close to a bus stop?

9. Focus on Outdoor Spaces

Millennials spend more time outside driving demand for usable outdoor spaces including lawn gardens, patios, and even balconies. If you have access to the outdoors in your property, make sure that it’s well advertised.  We’d also recommend showing how the space can be used to give potential buyers inspiration for what they could do with a space. You can do this by placing a couple of garden chairs and a potted plant or two.

Summary

Millennials have a different attitude when it comes to homeownership compared to other people. While the older generation is looking for a good home that will provide stability where they can stay for a long period of time, millennials want to live in places where they can easily access their jobs while maintaining their social lives. This means that they consider living in places where they can move quickly and manage their errands without wasting time. Proximity to malls and entertainment spots is a plus.

Sub-division is the process of dividing one parcel of land into two or more parts. As a real estate agent, you may want to do this in case you want to sell a piece of land after splitting it into smaller pieces. Subdivision may be occasioned by need to share a property among several people, convey a gift of part of a property, sell, develop part of a piece of land or for collateral purposes.

Subdivision is the opposite of amalgamation. Amalgamation is combining two or more pieces of land that are under separate titles into one piece of land with only one title. In case you missed it, you can read more about the procedure for amalgamation of plots in Kenya.

The process of subdivision is fairly simple as.

Step1: Preparation of a sub-division scheme details.

Before you begin the process, visit your local land registry and conduct a search to verify ownership or if any caveat has been placed on the land. You can do this yourself or have a surveyor do this for you. Land searches usually take around 3 days. For properties within Nairobi, please create an account on Ardhisasa  and follow this guide on how to conduct an online land search through Ardhisasa. The Institute of Kenya Surveyors has a list of all registered surveyors in Kenya. Hiring a surveyor is advisable and they will also help you to identify the exact boundaries of the property and will also advise you on the best way to do land subdivision.

After the official search, the surveyor will help you obtain a registry index map (RIM) from the Institute of Surveyors of Kenya. The RIM is a map that covers a large geographic area in which the land to be subdivided lies. Using the map, the surveyor visits the land to ascertain the measurements indicated on the maps are the exact measurements on the ground.

Once measurements are confirmed, the surveyor then prepares a Subdivision Scheme, which must be signed by a Registered Physical Planner who then gives a Physical Planning Act form commonly known as PPA 1 Form. The physical planner must have a valid license from the Physical Planners’ Registration Board.

The easiest thing is to hire a surveyor or a physical planner to handle the full process. Discuss with the physical planner or surveyor on the objectives intend to achieve and formalize the relationship by agreeing on fees and timelines through a signed agreement.

Step 2: Submission to the County Government.

The subdivision scheme is then presented to the county government. The county government circulates the scheme to various County departments and Government Agencies for evaluation. Evaluation is done for items like zoning compliance, roads alignment, water reserves and other environmental considerations. Also, the committees will review social amenities provided e.g. schools, plot size, road size, drainage, sewer reticulation and assess sufficiency of these.

The accompanying documents to be given to the county government include:

Requirements for land Subdivision of land in Kenya:

1)        Certificate of official Search.

2)        Ownership documents/ Title deed of the land

3)        Registry Index Map (RIM)/ Survey Map

4)        Copy of payment receipt for application of subdivision and land rates /Rates Clearance certificate. In Nairobi, remember you can pay for land rent using Ardhisasa.

5)        Copy of the physical planners practising certificate

6)        Land Control Board consent to sub-divide the land

7)        Duly filled Form PPA1

8)        Well-drawn scheme showing the proposed subdivision.

9)        Four copies of sub-division scheme plan signed by the physical planner (and the developer if applicable).

The county government may make requests for pieces of land to be set as public utilities for the approval to be done. Such public utilities include playgrounds or police stations. If any modifications to the subdivision requests are made, the Physical Planner and Land Surveyor will then go back to the drawing board and amend the subdivision plan to conform to the county government directives

If the county government is satisfied with the subdivision report a PP2 Form is issued approving the subdivision of land as per the surveyed plots. The county government may also approve and provide other conditions that should be put in place before the Ministry of Lands issues individual titles to the divided land.

Once all the conditions for subdivision as stated in the subdivision approval letter are met, the council inspects and issues a letter allowing the Ministry of Lands to issue all the remaining titles. If fulfilment of some conditions is capital intensive, the county government can offer phased approvals.

Step 3: Submission to the Land Control Board.

After issuance of PP2 forms, then a booking of a meeting by the lands Control Board can be set. The registered surveyor or planner will present the Subdivision scheme details, a current Title Search (valid for three months after date of issue), the PPA1 and the PPA2 to the Land Control Board for review and approval. The land control board is a meeting of local elders who sit at the sub-county level and approves all land transfers in their area. A meeting with the land control board must be booked at least two weeks in advance, and the board sits only once a month.The landowner is required to present themselves in front to the board with their spouse as applicable.

After getting the land control board consent, the surveyor places beacons to mark the boundaries. In rural areas, general boundaries are common where an error margin of one metre is allowed in the placement of beacons. In urban areas, cadastral (fixed) land boundaries, whose beacon positioning is measured in coordinates, is preferred.

Once the boundaries are marked, both the land owner and the surveyor are required to sign copies of the Mutation Form. The mutation forms, together with the search document, the consent form from the Land Control Board, the PPA1 and the PPA2 forms are then forms are then deposited with the district survey office, where a cartographer allocates new plot numbers to the subdivided plots.

 Step 4: Submission to the National government/Ministry of Lands.

The same documents presented to the county government together with the approvals are then deposited with the Institute of Surveyors of Kenya to allow for the amendment of the Registry Index Maps.

The same documents that were deposited  with the district survey office  are then taken to the respective land county registries to allow the land registrar in the processing individual land title deeds..

After a given period you then visit the county registries for the individual title deeds. once you have title deeds and intend to sell some of the plots/land, register with us by creating an account for free and start selling.

Land subdivision cost in Kenya.

There are various costs throughout the land subdivision process. The fee for the whole process varies and is charged depending on the land itself both the size and location.

Properties that cannot be subdivided

Not every piece of land can be subdivided.  Exemptions include;

•       A property that is collateral for a loan in a financial institution.
•       A property with a caveat on it to prevent any action on the property.
•       Property with a court case that is still pending and not yet resolved

Tax payment for subdivided land

If there is no change in ownership, then no taxation is done. However, if the plots are in the name of a different entity then you will need to pay capital gains tax.  If paying for stamp duty on Ardhisasa, you can use this guide on how to pay stamp duty on Ardhisasa.

I hope the above covers general questions you may have. While choosing a surveyor, it is advisable to go for a professional with good reputation and experience. If you require a qualified land surveyor, you can reach out to Steddy Trading Real Estate on 0722244971 or write to us on in[email protected]

Are you planning to subdivide your land and want to avoid costly mistakes? Don’t miss out on our upcoming webinar on land subdivision! Learn from experts about the legal requirements, practical steps, and pro tips to ensure your subdivision process is smooth and successful.

Click here to Reserve your spot today.

Buying a house is one of the biggest decisions that you will make in life. This calls for us to ensure we make the decision in the right way.  There are various items to check for as you buy, and various people to involve in probably the biggest investment of your life.

To learn the documents that you will need during the process of buying a house, this blog is the ultimate guide to the homebuying timeline for newbies in Kenya. It will help you follow the correct process of home searching and ownership.

 Here is a step-by-step guide to buying a house in Kenya

1.     Decide on your budget

 One of the first things you need to do when buying a home is to decide on your budget. You need to know how much you can afford to spend on a home so you don’t end up overspending. You need to consider a few things when setting your budget, such as:

·      Consider your income. How much money do you make each month? How much of that can you afford to put toward a mortgage? 

·      Consider your debts. Do you have any outstanding debts that you need to pay off? If so, how much can you pay toward your monthly debts?

·      You also need to consider your other expenses. Do you have any other monthly expenses that you need to pay? This could include car payments, credit card payments, or childcare expenses. You need to make enough money each month to cover these expenses.

Once you’ve considered all of these things, you can start to set your budget. You need to make sure you’re comfortable with the amount you’re spending each month on your mortgage. You should also ensure you have enough money left over to cover your other expenses.

2.     Talk to your bank

 Chances are you will use a mortgage loan to buy your home. Therefore, talk to your preferred bank, which will help you with exclusive rates. In most cases, most banks know the home prices range in different regions so that you can tell them your preferred house size and location. This will help them see the amount they’ll give you as loans and the down payment.

 3.     Find a real estate agent

 When you’re ready to start looking for a home, it’s time to find a real estate agent. An excellent real estate agent will make the home-buying process much easier and help you find the perfect home.

 The first step is to ask your friends and family for referrals. If you know anyone who has recently bought a home, they may be able to recommend an excellent real estate agent. You can also check online reviews to get an idea of which agents are popular in your area.

Once you’ve found a few interested agents, you should interview them to see if they’re a good fit for you. Be sure to ask about their experience, knowledge of the area, and negotiation skills. Once you’ve found the right agent, they’ll help you find the perfect home and guide you through home-buying.

Furthermore, you can view our home listings to see which is most appealing.

 4.     Start searching for your dream home

 Now that you know what you can afford and what you are looking for, it is time to start searching for your dream home. Luckily, there are several ways to search for homes these days. One of the easiest ways to search for homes is online. There are several websites that allow you to search for homes based on your specific criteria.

You can also sign up for email alerts to notify you when new listings that match your criteria come on the market.

 In addition, do not forget to drive around your desired neighborhood to see if there are any for sale signs. This can be a great way to find homes not listed online or with a real estate agent.

 5.     Get a real estate attorney

 A real estate attorney is very crucial to the home-buying process. They will help you with all legal proceedings for buying a home. In addition, a real estate attorney can represent you in court if anything arises in the future.

 6.     Make an offer

Once you have found the perfect home, it is time to negotiate the purchase price. Negotiation can be tricky, but it is essential to remember that the seller will likely be flexible on the price.

Offer and negotiation is usually done through a real estate agent, who will help you negotiate with the seller. The agent will also help you with the paperwork to make an offer.

You can make an offer below the asking price. The seller will counter your offer, and you will continue negotiating until you reach an agreement. You can attach a proof of funds letter from your bank to convince the seller.

It is important to be realistic when negotiating the purchase price. If you can negotiate the purchase price successfully, you will have saved a significant amount of money.

7.     Get a home valuation.

A home inspection is an examination of the condition of a home, usually performed by a professional home inspector. Lenders often require home inspections as a condition of approving a loan for a home purchase. 

The inspector will look at the home’s structure, including the foundation, framing, and roof, as well as the home’s systems, such as the electrical, plumbing, and heating/cooling systems. The inspector

will also check for any visible signs of damage, such as water stains, cracks, or mould. 

A home inspection can be a valuable tool for buyers, as it can help identify any potential problems with the home before the purchase is finalized. However, it is essential to note that a home inspection is not a guarantee that you’ll find all potential problems.

8. Finalize the purchase

Once you have found the perfect home and negotiated the price, it is time to close the purchase deal. 

First, you will need to put down a deposit. The real estate agent or an attorney typically holds the deposit in escrow until the transfer process is completed.

Next, the buyer will need to obtain a loan to pay for the remaining home balance. Sometimes, the seller may be willing to finance the purchase, but this is rare. Once the loan has been approved, the buyer must sign all the loan documents.

Conclusion

The homebuying timeline depends on how fast you get a home that is appealing to you. After getting the right home, the process is simple and takes a few weeks.

Buying a house requires a lot of time and effort. To help you navigate the process, give us a call or enter your question in the comment box below.

Frequently Asked Questions

1.    What is the fastest time to buy a home in Kenya?

After getting the best home for you, it can take a few weeks to finalise everything, from the home inspection to closing the deal.

2.   How can I speed up the homebuying process in Kenya?

The best way to buy a house fast is to find a seller with a ready contract. That way, you will not spend much time waiting for the contract draft.

3.   How many months should I take when searching for a house in Kenya?

One thing to know is you should not be in a hurry when searching for a house. Remember that it’s a big purchase and if anything goes wrong you will lose a lot of money. Therefore take your time to search for the right seller.

Technology has transformed the process of buying and selling houses. It has really made things more comfortable for home sellers. Whether you are looking to buy or sell a home, technology has transformed buying and selling in big way. Nowadays, paperwork can be completed without picking up a pen, many people will see your property online before they see it in person.

Most real estate agents also use social media, email marketing, and other technology-driven platforms to communicate with buyers and market to local communities as well. Here are a few ways in which technology has improved the state of buying and selling in real estate.

1. Most of property purchases start online.

According to research by the National Association of Realtors, 99% of Millennials, 89% of Older Boomers and 77% of the Silent Generation searched online websites when buying a property. On average, about 43% of buyers start their property-search online. As a buyer, search portals like Premier Agent can help you get started. This site helps you with information that helps you in decision making at the comfort of your home.

As a real estate agent, it means that you need to have a very good online presence. Whether is creating a good Facebook page, a website or joining real estate online platforms.  Once you create a Facebook page and a client likes your page, they will begin to see your posted content on their timeline. We support you to list your experience, homes sold in the past and you even get to have past clients rate your services. This helps to showcase your experience and generates trust. As an agent, identify ways to build your expertise and position yourself as an ethical professional your clients and community can rely on.

2. Transparency process

The roll out of Adhisasa by the government has a potential impact in the real estate industry, from buying property to due diligence. Ardhisasa is an online platform that allows Citizens, other stakeholders and interested parties to interact with land information held and processes undertaken by Government. You can now search for land ownership, pay your land rent on Ardhisasa, at the comfort of your home or office.

3.     Mobile apps are making buying and selling easier

Most common listing websites like ours also have apps that you can use to make the buying or selling process an even easier one. You can sign up to get notifications sent to your smart device about properties that you have favorited, as well as about properties that may be suitable for you. These apps ask you to set the criteria for what you want in a home, including size, location and even specific features that you would like the property to have.

 4.   Data Analytics

For real estate agents, getting and following up on leads remains as important as ever. A CRM is a must-have for every real estate business. It eliminates the cutthroat competition that causes leads to slip from your plate onto another team’s. It is the primary step in the adoption of technology in the sales and marketing process of a real estate business. CRM Africa with offices in Nairobi provides affordable software to generate leads, get insights and convert more leads to business with an easy to use software for your business. The real estate CRM helps you engage with customers across multiple channels at each stage of the lifecycle. Get the right context across different media and stay notified in real-time.

5. Virtual Experience of Potential Homes

Virtual reality (VR) is one technology that is becoming more popular among buyers and businesses alike. Advanced builders are already moving beyond photos, and even 360-degree videos, clients are now offered 3D virtual property tours on their devices. 

Although virtual reality is still new in real estate, it is almost tailor-made for this market! VR allows users to navigate floor plans digitally, unlike anything on the market. These immersive 3-Dimensions tours will drastically change the pre-construction phase for new houses as potential buyers have a chance to see what the spaces look like before any construction has begun.

In Conclusion

Technology has had a good impact on real estate and the great benefit is that the availability of listing data and market trends will help buyers and sellers to make more informed decisions. If you need help to develop a website that showcases your company, we can help you get there. We also help you get ahead of the curve by giving you free access to the best property listing website in Kenya.

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

Supply and demand

Economic environment

Interest rates

Government policies

Societal and demographic factors

Technology Environment

Purchase conditions

Supply and Demand

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

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

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

Economic Environment.

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

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

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

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

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

Interest Rates

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

Government Policies

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

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

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

Societal Influences and Demographics

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

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

Technology

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

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

Purchase Terms

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

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

Summary

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

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