Category: Tips Advice

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.

The Ultimate Guide to Investing in Multiple Rental Properties

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.

Banking is one way that can help you grow your small business. However, you should find the right banks to help you in your time of need.

Due to financial technology improvement, you can access your account in the comfort of your home or wherever you wish. That’s one good thing happening to our banking sector.

This guide will teach you the best banks to help you and provide the best services.

Factors to consider when choosing the best bank for small business in Kenya 

• Fees associated with account openings and maintenance. The lower the fees, the better.
• Loans availability for small businesses. Can you get a small business loan, and what are the requirements? As a real estate investor, you need a bank that can give you a mortgage to buy more property if necessary.
• Can your clients pay directly to the bank? You will need a bank account where you can link your products and services payments.
• Loan interest rates. The lower the interest, the better since you’ll pay a small amount in each installment.
• Customer service. Does the bank have good customer representatives willing to help you when needed? In addition, can you access customer support 24/7?
• Minimum balance. Some banks have no minimum balance requirements, while others have very high minimum balances.

Now, I will guide you into choosing the best bank with good qualities to serve your small business needs.

Essential Tips for Mastering Real Estate Finances and Boosting Your Profits

1. Equity Bank Kenya 

Equity is the best bank where you can open a small business account. This bank has thousands of equity agents all over the country, meaning you can easily use your ATM to get funds faster.

In addition, you can withdraw or send money using your mobile banking services or the Ezzy SIM card. Actually, Think Business Awards recognized Equity as the best bank with mobile banking services. 

If you are out of the country, you can manage your account transactions using the online portal. So you can comfortably check your rental income progress while away from home. 

Equity bank Kenya is the only financial institution in Kenya that allows you to link your Paypal account. Therefore, it’s suitable for small business owners like freelancers who receive payments from abroad via Paypal.

In 2021, Euromoney Awards ranked Equity bank as the best SME bank in Africa. It also emerged among the top 1000 banks in the world.

Think Business Awards recognized Equity bank as among the best banks you can borrow from. There are options for getting Ezzy loans, Small Business Loans, and big business financing.

2. KCB Group 

Kenya Commercial Bank is another best bank for small business and real estate investors.

This bank has a special Biashara club that helps you get fair interest rates on business loans if you are a member. You also get negotiated Forex trade rates.

Apart from that, being a biashara club member allows you to get support and resources to help grow your small business. In addition, you meet big investors that can help you grow your real estate business.

Biashara club members have special managers to help them get the best from their banking experience. In addition, the managers help you make the right investment decisions.

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The bank’s blog section informs members on offers and new investment ideas. 

You can get a mortgage loan to start a real estate business, even when you are in the diaspora. In addition,  you can comfortably manage your account while you are outside the country via online banking services.

You can open a small business current account or a business saving account. The good thing is you don’t need a minimum balance to use the account. The application is also free.

However, the account maintenance fee is Ksh. 300 annually.

3. Cooperative Bank Kenya 

Coop bank is another excellent bank for small businesses in Kenya. This bank has a Haba na Haba account for small businesses. It’s free to open a Haba na Haba account without a minimum operating balance.

With this account, you can access business loans and your business funds whenever needed.

The bank has introduced mobile and internet banking that allows you to access your account anywhere in the world.

The Cooperative bank also has an MSME account that lets you do all your business needs in one place. However, the minimum operating balance in its Bronze account Level is Ksh.300 and an opening balance of Ksh.1000. If you need a checkbook to initiate purchase payments, you’ll get them for free.

4. Absa bank Kenya 

This bank was formerly known as Barclays bank Kenya. 

With Absa bank, investing in real estate is easy since you can get a mortgage to build a home, buy and let, equity release, and remortgage.

Absa bank offers unsecured business loans of up to Ksh.6M with a maximum repayment of 5 years. You can repay within ten years if you need a secured business loan.

Absa has several special business accounts.

There is the She business account that supports women in business. This account has a 1% cashback reward for balances of Ksh. 300,000, which is paid monthly.

Members enjoy free Mpesa deposits and withdrawals. In addition, you can access your account in any part of the world through the Absa app and internet banking. There is also mobile banking supporting local members. 

There is also a small business savings account with no monthly fees. In addition, you will earn interest if you don’t withdraw your funds in one quarter.

This bank also has a Business club account suitable for small businesses in the growth stage.

In addition, there is the La Riba Business Current account for people who prefer Islamic products.

5. Family Bank Kenya

This bank has a good plan for small businesses. For instance, the Jenga Bizna account allows small businesses that want to save and grow their business. When you save with this account, you will earn interest on balances of more than Ksh. 20,000.

You can also grow your business by taking microloans using the Jenga Bizna account. 

The Business current account with Family bank also allows you to manage your day-to-day business activities like payments. You don’t need a minimum balance to maintain this account. In addition, you don’t need to seek approval before withdrawing a large sum of money. You can also secure a business loan using the business’s current account.

Bottom Line

Now that you’ve read about the best banks for small businesses in Kenya, you can go ahead and make the right choices to grow your business.

Frequently Asked Questions 

1. Which is the most stable bank in Kenya?

Equity bank has received several awards for satisfying its clients. Think Business 2022 Awards recognized it as the best bank in Kenya. Equity bank has also been in operation for a long time.

2. How much do you need to open a KCB account?

You need Ksh. 200 as the opening balance for a KCB account.

3. How many bank accounts should a small business have?

You need at least 3 accounts for your small business. A checking, high-yielding savings, and money market.

4. What do I need to open a small business bank account in Kenya?

When opening your account, you need the following:

• National ID
• Business KRA Pin and VAT
• Filled bank form
• Annual returns
• Registration certificate

As a real estate investor, you want to profit from your investment. You’ll also need to know how long it will take to realise your returns on investment (ROI).

Applying certain rules of thumb can help when determining whether a real estate investment is likely to be profitable. The 50% rule in real estate estimates that real estate investors should expect a property’s operating expenses to be roughly 50% of its gross rental or lease income.

However, we don’t include mortgages in these expenses. Instead, expenses like property taxes, insurance, maintenance costs, capital expenditures, utilities, and property management costs.

Therefore, if your monthly rental income is Ksh. 200,000, you should use at most Ksh. 100,000 for expenses. These expenses include property management costs, taxes and other management costs.  The amount also includes periods where your rental property is vacant. The remaining amount is your net income.

The 50% rule is an excellent way to dive into the real estate business. If you are new to property investment, this rule can help you avoid some beginner mistakes.

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This rule ensures that you don’t exaggerate real estate profits. You can easily track your real income by keeping clear monthly expense records.

How Accurate Is the 50% Rule?

The 50% rule for real estate investments is a guideline and not cast in stone. The rule is designed to help you as a real estate investor estimate what you may make as rental returns in case you invest in a specific rental property. Again, the 50% standard is intended to prevent investors from underestimating the costs of owning  and running the property.

Benefits of The 50% Rule in Property Investment

• With this rule, you determine the growth potential of your rental business. You can save and eventually buy another property if you have a bigger share after the 50% rule.
• It helps you evaluate real property income. If you are buying a rental property, you’ll request the owner to give you income and expenses records. That way, you’ll know the potential of the property.
• With the 50% rule, you’ll know when to continue with the business and when to sell it.

If you get a higher cash flow amount after 50% and a mortgage investment, you can go ahead with the investment. 

What is the 1% Rule in Real Estate?

The 1% rule tends to go hand in hand with the 50% rule. The rule will show you how much rental income you should expect from a profitable rental property.

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The 1% rule insinuates that the monthly rental income should be at least 1% of the total property purchase price.

If you find a house with a more than 1% return, then that’s a good investment.

Example calculation:

If you bought rental property worth Ksh. 20 million, monthly rental income should be 1% of that, which is Ksh.200,000.

If you cannot get that 1%, investing in real estate might be a bad idea. Instead, go back and search for the best locations with high rental yield potential.

This 1% rule is also a guide. In certain neighborhoods, you can get returns above 1%.

Conclusion

The 50% rule will be a better blueprint to determine the cash flow you will earn on specific rental property. Of course, there are other things you’ll want to consider beyond the 50% rule for real estate

Although the figures you get are close estimates, they should help you make the right investment.  

Always ensure you scrutinize rental property before investing in it. Consider all aspects that will make you realise your ROI as early as possible. 

In business, you have to know how to pitch your business. You might not be having plans to fund having a solid elevator but pitching ensures that you know your business pretty well. And this comes hand in hand when you eventually decide to seek out investments.

How do you make a pitch to an investor?

What we all need to know when talking of pitching is that whenever an entrepreneur wants to create a successful pitch you have to good business plan. From there you will be in a good position to identify what will make your business valuable and worth investing in. Here are some ways how to make your pitch successful.

1.                 Creating a good presentation

Before doing anything else, take time to put your pitch deck.  Your aim is to create a deck that is easy for you to work on and get investors happy about your business. Considering that done, always have in mind to have a small version that you can speak to within some minutes as well as an extended version that contains everything you would like to give potential investors access to.

This is the best time to use your free pitch deck template for PowerPoint to keep you going. In case you may need help in putting your pitch together you can check out this list of tools that can help you put together a professional presentation.

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2.                 Practice your Pitch

You need to practice your pitch and ensure you know everything because not being able to quickly speak about each element of your business makes every other part on the list meaningless. Many businesses always think that by just understanding their business they can quickly explain its value hence they end up going to pitch meetings without getting prepared.

Take your time and practice, simplify your messaging, and only keep the important elements that will give a positive impact on your business.

3.                 Use a story to outline your problem

Here, you can begin your pitch with a very compelling story and have in mind that the story should address the problem you are trying to solve and with a story, your audience will be fully engaged. Always try including any form of data if you have done any testing.

Ensure you conduct some research about the investors so that you know what they care about if you can tell your story to them.

4.                 Have a Solutions

Tell your audience the unique things about your product and how it will help them solve the issues. Make it brief, concise, and simple for the investors to understand and can explain to others. Avoid using buzzwords unless your investors are very conversant with your business. And if you have done any testing before, plugin results to give in solutions more easily.

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5.                 Your target market

Having a target market means having a specific group of audience that you basically major in as per your industry. Just try to be realistic about who you are building your products for.

If you can try and develop a user persona of your ideal customers when talking about your target market then this can help visualize the potential customer displays that you have thought wisely of who your business will serve. Note that it is always easier to speak to a named individual in a quick pitch rather than speaking to a big demographic.

6.    Your Revenue

As an entrepreneur, you have to major in this because you need to know how you will make money. You need to be very specific about your products and the pricing. As well as emphasizing how your market is highly waiting for your arrival.

7.                 Your funding needs

Feel free when dealing with your investors. Clearly spell out the amount of money that has already been invested in your company and other preferable details.

Remember to remind your audience why your management team is of importance and capable of managing their investments for growth. Discuss to them how much you need, the reason as to you need the funds, what it will be used for, and the intended results.

8.                 Take feedback and refine your pitch

Never be discouraged by the outcome of your pitch, whether positive or negative always strive to look for ways you can improve. Always ask for feedback and take them to account for the next time you pitch and if the investor is not willing to provide any don’t insist, furthermore it is their time you have spent so it is more or less the same.

Always work with your team so that they can help you in note-taking and review with them later. Look for the weak points and the areas you stumbled over which led to the negative reaction of the investors. Always keep practicing, and executing even if you have the best pitch.

It is not always easy for one to how good your pitch is until you actually do it.  Work smart and learn to treat every investor pitch as a learning experience for you and your business.

The above discussed are just some of the ways one can use to become successful in pitching business ideas to the investors. Feel free to look for more from different sources for the best outcome in your businesses.

Have you ever considered how many hours of work one always wastes on multitasking during work time or the small task that one might engage in? All these are the reasons as to why people lose attention or focus during work hours. As we all know that after any distraction on a work schedule, it has to take you some minutes to regain focus which at the end of your work session you will come to realize how much time you have wasted.

Although, to do lists have been hugely popular for years, a very big number have now replaced their list with more structured weekly plans and this is because lists don’t just work for them anymore because:

·         This is because some people don’t have a good system on how to prioritize the items on the list.

·         Some get overwhelmed by looking at all the things they have to do.

·         Others might also have a feeling that they are continuously adding to their list rather than reducing it.

People need to know the power of weekly planning which lies in the perspective and the control that it provides for work. If one sets aside an hour each week, then I consider that not much, but besides, you need to see that the investment is phenomenal hence leading to good time switching those lists for a good weekly plan. Below is a good explanation of what a work plan is and the reason as to why we need a work plan.

What is a work plan?

This is a visual map of your to-do lists that helps you stay much more organized while working on your tasks. With a work plan you will be able to be more organized and encouraged more so on what you want to achieve and break the week into smaller parts making everything flow easier for you. You can relate this to a game sport where the managers put out a well-managed strategy that will help the team archive their objectives.

Why do we need a work plan?

With a good work plan, you will come to realize that it is very important in anything regarding work.

1.   A work plan will always give you more structure – With this, you will be able to use your time more efficiently and will make you spend less time on regaining focus after being distracted.

2.    It will also help you in further visualizing your week- Having a week visualized week your work flow will be much easier. You will be in position to spread out and prioritize work in a manner that significantly increases how much you can accomplish. In all aspects, weekly planning gets you more work done in a very organized way. Always know that every minute spent in planning saves 10 minutes in execution.

Creating a Work Plan

Here, we are now ready to save hundreds of hours and loads of energy by working much smarter. Below are steps to follow to make your weekly time management plan.

1.      Choose your planning tool

Everyone is different and with different preferences on working tools to use depending on their work. Many people will opt for the digital tools that will enable them to do their work from anywhere. With so many options from so many simple tools available, everyone needs to find what works best for them. You can check out for list of best time management software in the market.

2.     Plan Your work Regularly

Your weekly plan has to be done every week. That’s the main reason as to why it is known as a weekly. So, a habit of making it work has to be there. You need to pick a day that you will use to establish your weekly work plan. You can always review your weekly accomplishment and plan ahead for the rest of the week.

3.     Get Planning

When planning you need to begin with your bigger goals, after that decide on what you want to accomplish the following weeks to meet those goals. Have in mind that the task you add to your weekly plan should be the one that brings you closer to you achieving your goals.

4.     Schedule Everything

After knowing what you want the next week and planning well, schedule your timing. And the best way to ensure you plan a realistic work plan for the week is, if you work with your calendar and see if there is time for everything. It is very important if you plan time to complete a task.

Another thing you need to consider is, you need to be careful not to over-schedule your time. You need to leave time for maybe your meetings and any activity you might have apart from work or even times to reflect and think or even any breaks you need.

5.     Stick to the Plan

Imagine having done all the work of making your plan and failing not to follow it will be a full waste of time. Ensure you brush over your daily plan every morning before going to work. Go over your plan and make adjustments if needed. If you had a meeting and maybe it gets canceled or if there is any task uncompleted. With all these you will have a clear understanding of your daily priorities. And always to make sure nothing important falls through the crack, immediately reschedule the tasks that were not completed.

6.     Reflect and Repeat

Ensure to look at your plan at the end of every week. Feel encouraged when seeing that you have worked according to your plans and all the tasks are accomplished.

Conclusion

Always remember that planning your weekly work is a learning and continuous process. The longer you do it the better you get at predicting your energy levels. Following the productivity tips and planning accordingly will help you learn to let go of inefficient tasks and projects.

Once the habit of weekly work planning is in you, it will definitely become something you enjoy and look forward to doing. As you consistently plan out your week, you will find yourself motivated and more direct to the productive time.

There are many house types in Kenya, but some are more popular than others. When investing in real estate in Kenya, you should learn the house culture in the country. This will enable you to build a more appealing house that will get clients as soon as possible.

Kenyans love their culture, and it’s not surprising that some Kenyan tribes, like the Maasai, have not forgone their culture to shift to modern houses. But that does’t make Kenya a bad place to invest in. Once you invest in the Kenyan property business, you should use the common bricks and stone houses which attract more people and businesses in urban centers. 

This post explains the types of houses in Kenya and the styles that Kenyans love. It will help any new investor to make the right investment choices s in Kenya.

The Different Types of Houses in Kenya

There are many different types of houses in Kenya, each with unique features and benefits. The most popular types of houses in Kenya include the following:

Bungalows

Bungalows are the most popular type of house in Kenya and are known for their single-story design. Bungalows are typically made of brick or stone and have a pitched roof, making them durable and low maintenance. Most people doing income property investments construct these house types in high-end areas with rich people.

Maisonettes

Maisonettes are another popular type of house in Kenya and are similar to bungalows in that they are also single-story. However, maisonettes typically have a flat roof and are made of concrete, making them even more durable than bungalows.

Townhouses

Townhouses are a type of house that is becoming increasingly popular in Kenya. Townhouses are typically multi-story and made of brick or stone. They are often found in gated communities and offer a higher level of security than other houses.

Villas

Villas are the largest and most luxurious type of house in Kenya. Villas are typically multi-story and made of brick or stone. They often have private pools and

The Most Commonly Built Houses in Kenya

Three main types of houses are built in Kenya: mud houses, stone houses, and concrete houses. There are a variety of materials used to construct these houses in Kenya.

Mud houses are the most traditional and are made by mixing mud with water and then shaping it into bricks. These bricks are then dried in the sun and used to build the house’s walls. Mud houses are very popular in rural areas as they are very cheap to build. 

Stone houses are also popular in Kenya and are made by stacking stones on each other to create the house’s walls. These houses are more expensive to build than mud houses but are more durable. 

Concrete houses are the most popular type of house in Kenya and are made by pouring concrete into molds to create the walls of the house. Concrete houses are more expensive to build than stone or mud houses but are the most durable.

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The Most Popular House Styles in Kenya

There are a variety of house styles that are popular in Kenya. These include traditional styles like the Kenyan Massai hut and modern styles like the Kenyan bungalow.

The Kenyan Massai hut is a traditional style of house that is still popular in many rural areas. These huts are made from a framework of wooden poles and are covered with a thatched roof. The huts are usually round in shape and have a small door and window at the front.

The Kenyan bungalow is a more modern house becoming increasingly popular in urban areas. Bungalows are usually single-story houses with a veranda at the front. They are often built from brick or concrete and have a tiled roof.

Both of these house styles are popular in Kenya, with many variations of each.

The Most Popular House Colours in Kenya

There are a variety of house colours that are popular in Kenya. White is a popular choice for both walls and ceilings. Other popular colours for walls include cream and light grey. For roofs, aluminum colour, dark gray, blue, and brown are popular choices.

Some homeowners choose to paint their houses in more than one colour. A popular combination is white walls with a dark gray or brown roof. This combination is thought to be stylish and elegant. Another popular combination is cream walls with a dark gray or brown roof. This combination is thought to be warm and inviting.

Regardless of your house type or colour, painting your house is a great way to add value to your home and make it look more appealing.

The Most Popular House Features in Kenya

Kenya has many different types of houses with different features, but some features are more popular than others. Here are eight of Kenya’s most popular house features:

Large windows. Many Kenyan houses have large windows, which let in lots of natural light and offer good outside views

Spacious rooms. Many Kenyan houses have spacious rooms perfect for families or entertaining guests.

High ceilings. Many houses in Kenya have high ceilings, making the rooms more open and airy.

Plenty of storage. Many Kenyan houses have plenty of storage space, perfect for organising your belongings.

Good security. To keep your family safe, most Kenyan houses have good security features, such as gates and fences.

A garden. Many Kenyan houses have a garden, a great place to relax or entertain guests. Kenyans also like planting vegetables in these gardens, reducing the cost of living.

A swimming pool. Many Kenyan houses have a swimming pool, a great way to stay cool in the hot climate.

A garage. Many Kenyan houses have a garage, perfect for storing a car or other vehicles.

Summary

As you’ve seen, there are many types of houses and building styles in Kenya. Since you have had a view into Kenya’s housing culture, why don’t you give it a trial and invest in real estate in Kenya?

Frequently Asked Questions

What are the 4 common types of houses in Kenya?

The common types of houses in the Kenyan property market are villas, apartments, mansions, and bungalows. These are the common types of houses you should consider when investing in Kenya.

What are the main house-building materials in Kenya?

Kenya’s most used building materials are stones, bricks, cement, steel, aluminum iron sheets, timber, and mud. All these materials are readily available in all hardware shops across the country. Therefore, the supply is always steady.

Which is the cheapest modern house to build in Kenya?

Using bricks is less expensive than using stone or concrete. However, brick houses are not as strong as stone ones, but they are far better than mud ones.

Building your home is very exciting. For many people, the idea of living in your own home represents a dream come true. Its achievement of a long-cherished life goal or a reward for many years of hard work.

As you may not afford land in urban areas, then satellite towns remain an option. Some satellite towns to consider include Ngong, Ruai, Kitengela, Rongai and Athi River. Along thika road, areas like Ruiru and  Juja have become favorite areas for those willing to leave the comforts of the city.

We already covered the top 5 advantages of living in Nairobi’s Satellite towns. Look at that blog if you are still undecided on the advantages.

Before deciding on a location to build your home, there are several considerations to make. This will help you figure out which option is going to suit your individual preferences, tastes and needs.

Here are some items you need to consider.

1.Less time for children and family

If you buy land in Nairobi’s satellite towns and build, you will find yourself living far away from work. People who live far from work usually have less time to spend with their families. This is because they leave early for work to beat traffic. They also come back late because of traffic jam.

Most parents find their children in bed and see them briefly during the morning rush to beat the traffic. This has led to children spending more time with the house help than their parents.

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As you consider living far from your usual place of work, have this in mind.

2.Insecurity of person and property

In most satellite towns in Nairobi, there is more theft and vandalism. While you may have security measures in place, this may not be enough. With no immediate neighbours, thieves will find it easy to climb over the fence and steal. In worse situations, they will harm you. To protect yourself, you may have to hire armed guards which is an added cost.

 I know of a couple whose home was raided and lost their ï»¿car and other valuable items. Following the break-in, they decided to leave their home. They and are now renting on Ngong Road until further notice.

 â€œOther thieves will not even wait for you to enter your house. They track you from work and wait to ambush you on the way home. The Boda Bodas that pick us are sometimes part of the gang. These Boda Bodas know all our movements,” says Mutua, a resident of Kitengela.

 3.Transport costs

One of the big wins from moving to satellite towns is a lower amount of rent payable. I have seen 5-bedroom rental houses in places like Kitengela going for under Ksh 30,000. The same house would go for upwards of Ksh 70,000 in upmarket neighbourhoods.

 At first glance, it looks like costs go down. When you add up all costs incurred when commuting to and from work, you may have spent more than you had estimated.

 When Kamau, found a plot in Juja at KShs2.5m, he felt as if he had hit a jackpot. He set about building the home of his dreams and within a year he was ready to move in. everything was good in the first few days.

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 â€œThe horror started when schools opened. We had to commute from Juja to Nairobi every morning. This meant braving the evening traffic jam every day,” Kamau narrates.

 Soon he realized they were spending a lot of fuel using two cars and decided to use one car. This too, caused inconvenience as him or the wife was often late for work.

 The poorly maintained feeder roads led to rapid wear and tear of the car. This forced Kamau to visit the garage more often than usual, to keep the car in good shape.

 If you like your car neat, you must pay for its washing daily because of the dusty roads you use.

4.Inaccessibility to vital services

Urban living provides you with all the amenities and services needed. Most satellite towns may not provide the same services. Such services include piped water and electricity. There are hardly any health services, shopping centres or good schools. To access any of these, one must move long distances.

 Closeness to good schools is also a challenge in most satellite towns in Nairobi. Some parents solve the school problem by putting their children in boarding schools. This is because they cannot find a good school in the neighbourhood.

 Urban areas have access to fast internet that may not be available out of town. Some satellite towns lack shopping variety. the same is available for people living in urban areas.

 Cities also tend to offer better access to medical, dental and police services. Help is always right around the corner should you need it.

 5.Its more expensive to move around

The robust infrastructure of towns and cities makes it much easier to get from A to B. In satellite towns, there is limited public transport routes. Once you buy land in satellite towns, you may have to drive long distances to get anywhere.

 Many urban dwellers can skip the cost related to buying and keeping a car. This is because they can rely on public transport. They can also walk a few minutes to get to where they need to be. Taxis are cheaper in urban areas than in satellite towns.

 6.The opportunity to find your niche

Towns and cities are home to so many people. This makes it easier to find social scenes and communities to belong to.  Urban areas have a bigger selection of social spots. This makes it easier to find local groups and meeting places with like-minded people.

 7. A chance to be where things are happening

Town and city life is most likely to attract those who want to be where the action is. By moving to an urban centre, you’ll gain access to events and different experiences. the same may not be available in satellite towns. To prepare living in Nairobi’s satellite towns, have some or all the following in place for your security:

·       Security cameras installed in and around your house.

·       An askari to guard your house. You can team up with neighbours to make this cost affordable.

·       Enough security lights at night. Solar lights can help you reduce electricity costs.

·       Join an estate WhatsApp group for security coordination.

·       Create a good rapport with your neighbours. This helps as they act as lookouts especially when you are not around.

·       Have a perimeter wall to keep invaders at bay.

·       While going back home, especially at night and evenings, try to use different routes to your home. If you must use a boda boda, use those that you already know.

·       Choose your maids carefully and pay them well to deter them from conniving with thieves. Once you are doubtful of the behaviour of your house help, immediately get rid of them.

Conclusion

Deciding to live in a satellite town in Nairobi is not easy. Family considerations may end up being most important. This is particularly so if you have school-going children or a working spouse.

Before deciding, it’s always worth paying a visit to any area you’re considering moving. This helps you get a much better feel for what living there might be like.

To move into your dream satellite town, you need to start by buying land. These are the top seven real estate advertising websites that you can use.

Once you find a suitable plot or house that has been listed for sale, here is a guide to the process of buying land or buying a house.

Urban housing remains expensive. Affordable housing is beyond the reach of many Kenyans. To live comfortably, many are resorting to move away from big towns. This begs the question:

What are the advantages and disadvantages of living in satellite towns in Nairobi over living in an urban area?

Here, we break down 5 reasons that should convince you to make that shift to satellite towns like Ruaka, Kikuyu or Athi River.

Moving to satellite towns in Nairobi has its advantages. Here are some.

1. Lower upfront costs for a more luxurious home

You can buy land or a house in Nairobi’s satellite towns for a lower cost than a similar-sized urban property. Properties in Nairobi have become very expensive. Half an acre in estates like Runda or garden estate cost above 30 million shillings. A similar size of property in an estate like Kitengela will go for around 5 million shillings.

2. Reduced cost of living

If you move to satellite towns, you will find that you can do more with your money. This is because the prices of goods are lower. Costs of groceries, schools and eateries will cost you less. Even supermarkets charge different prices depending on the location of their store.

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3. Space to live and enhance wellbeing

Being more connected to the countryside can have a very positive impact on wellbeing. Connecting to nature helps improve your quality of life. Satellite towns in Nairobi will usually be spacious. People living in Nairobi’s satellite towns are likely to have their own gardens. This makes them perfect places to raise children in.

Wondering what else you need to consider? Here are 7 items to be wary of before moving to Nairobi’s satellite towns.

4. A stronger sense of local community

Fewer people live in satellite towns as compared to urban areas. If you buy a home in satellite towns, you become part of a closer community. If you buy a property in a satellite town, you will find it is normal to nod, smile and say hello to people you pass on the street. This is regard for others and politeness that you’d be hard-pressed to find in the CBD.

A greater sense of community and being more connected to the people around you, is good for mental health too!

5. A more relaxed pace of life

Living in Nairobi’s satellite towns offers a sense of peace, refuge and comfort. The same that cannot be provided by an urban house. You will find satellite towns offer soothing natural landscapes all around. A mere glance out of the window and onto open fields or other green spaces can help lower stress levels.

Satellite towns in Nairobi are quieter and more picturesque. When done right, gated estates within the satellite towns can be safer, with less crime, pollution and litter.

This makes them ideal for older people, parents raising young families. Satellite towns are perfect for people who want to live a more health-conscious life, away from the hustle and bustle of the urban centers.

Rent-to-own schemes are agreements that afford you the right to buy a home at the end of a pre-determined rental period, at a price agreed before signing the agreement.  In this scheme, you pay rent for a set period, with the option to purchase the property at the end. 

You will then be paying a higher monthly rent than usual with the additional contribution going towards buying the house. For instance, if the usual rent is Ksh 50,000, a tenant with a rent-to-own scheme may pay Ksh 80,000 with the additional Ksh 30,000 going towards the payment of the house.

Rent-to-Own Schemes in Kenya have been around for a while.  However, these schemes have historically been the preserve of Government Agencies such as Housing Finance Group, the National Social Security Fund (NSSF) & the National Housing Corporation (NHC). The models used by these institutions tend to favor civil servants.

Are you wondering if there are any Rent-to-Own Schemes in Kenya and if they are worth it? 

If yes, let’s dive into the details.

1)First, are rent-to-own schemes the right option for you?

The scheme will work if you already know where you want to live. If you are already settled, then this is fine. 

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Consider if you have a reliable income stream as you will need to commit to paying a monthly amount for a long time. If your income is irregular, you might want to save a few months’ worth of rent before you sign a rent-to-own agreement.

2)Why are Rent to Own Schemes so Risky? 

Rent-to-own schemes are not always beneficial, so you should be careful when you are considering this option.

The major downside of taking rent-to-own schemes is that you do not own any part of the home until you have made the final payment. As you do not have a title, if you’re unable to complete all payments, you can lose your hard-earned money already paid.

With rent-to-own schemes, the costs and risks are very high with very little legal recourse available if something does go wrong. Not only will you be paying an additional 25%-50% on your rent, but you might lose everything saved towards your deposit if something goes wrong.

 Additionally, even if you pay the rent plus option-to-buy fees diligently, you shall need to secure a mortgage at the end of the rental term. If you’re not approved, you might not get any payments back.

3)If you can lose your money, why choose a Rent-To-Own scheme in the first place?

There are several advantages of owning a home using the rent-to-own scheme

Benefits of Rent-to-Own Schemes

a)         If you agree on the future purchase price when signing the agreement, you benefit as the house may be worth more than the agreed purchase price. This is because the purchase price remains the same even if the house appreciates. 

b)         Rent-to-own schemes allow you to live in a home and neighborhood before committing to buying. This allows you to learn about any potential issues before it’s too late. 

c)         If you are unable to get a bank-approved mortgage, it’s easier to still get your dream house due to easier requirements to join.

Disadvantages of Rent-to-Own Schemes

a)         You may lose out on money if you choose not to buy the house. 

b)         If you are unable to obtain a mortgage, then you may not be able to buy the house. You also lose your right to buy the property if you can’t get a loan. 

c)         As you do not own the house yet, you have little control over any modifications to the house.

d)         If the landlord/seller of the property has their assets seized, you may not be able to get any of the money already paid.

e)         If your plans or circumstances change during the Rent to Buy period, you may be unable to move or risk losing money. This is because Rent to own comes with a long-term commitment.

f)          Rent to Buy isn’t available on every property on the market.

g)         If you buy a property as a rent to buy it may not always be easy to sell compared to a property that you buy outright.

h)         You will have no legal claim on the property until you have successfully purchased it in full. 

4)Thinking that rent to buy is a good option for you? These are some of the ongoing rent-to-own apartments in Kenya.

a)       The Crystal Rivers Development by Safaricom Pension Fund rent-to-own financing allows potential homeowners to live in their houses as they pay over 15 to 20 years without taking up a mortgage.

b)      The Green Zone is a residential complex with 1-, 2-, and 3-bedroom exclusive units in the serene area of Thindigua, Kiambu road. Approximately 5KM from UN Avenue.

c)       Kenpipe Gardens, Kitengela, developed by The Kenya Pipeline Company Limited Retirement Benefits Scheme (KPCRBS) with a maximum of 20 years repayment period as you occupy your preferred house.

d)      Nalani homes have Rent-To-Own 2 bedroom Apartments with an ensuite master in Ruaka

e)      Rama homes provide you with a Rent-to-own Ksh.75,000 per month with a 6-year payment plan at 0% interest.  Deirah Heights 1st Parklands is currently at the 1st-floor level. Book a unit in our newest project Gateway Park in Syokimau.

5)         How to start the rent-to-own process

Rent-to-own schemes come with lots of risks. If after careful consideration, you are convinced they’re the right option for you, bear in mind that you will sign one of two types of legal agreements.

a)         Right to Buy Agreement

Right to Buy Agreement require you to pay the homeowner an initial fee and then continue to pay rent every month. These fees are paid throughout your lease and go toward your down payment (if you decide to buy the home).  The fees give you the right to buy the house.

With this agreement, you do not have to buy the house. However, you will lose the money that you paid over and above the rent.

b)         Lease-Purchase Agreement

A lease-purchase agreement works in almost the same way as a right-to-buy agreement. You still lease the home for a few years and put a certain percentage of your rent toward a down payment to buy the home.

However, when you enter a lease-purchase agreement, you must buy the home at the end of the lease.

When it’s time for you to purchase your home, you’ll apply for a mortgage just like any other home buyer. 

       I.         Find a property

Start by finding houses that have been offered for sale using this option. Given there are several things that can go wrong for both renter and seller, the supply of rent-to-buy properties is fairly limited. This is why finding a suitable scheme may take longer than a traditional house hunt.

     II.         Conduct Due Diligence

This step is important because entering into a rent-to-own agreement effectively ties your future living arrangements to your seller’s financial circumstances. If they default on their mortgage, the bank could repossess the home, leaving you out of pocket and without a place to live.

Do detailed research on the seller or developer and find out everything you need to know about the development before you commit to signing the contract.

    III.         Sign an Agreement

Before entering into a rent-to-own agreement, make sure you seek independent legal and financial advice. Ask a legal expert to draft or review your contract so that the right terms are included.

A lawyer will help you understand your rights and obligations. You need to negotiate on some points before signing or avoid the deal if it’s not favorable enough.

    IV.         Keep up with your rental payments

Once you’ve signed on the dotted line, the onus is on you to keep the deal alive. Draw up a budget and stick to it, as missing a payment could see you and your family turfed out on the street.

     V.         Secure a Mortgage

After the end of the rental period, you’ll need to take out a mortgage so that you have enough money to pay for the home. Once you have paid all the costs, congratulations on becoming a homeowner.

Bottom Line

Rent-to-own schemes can be a good avenue for home ownership. However, there are several risks and disadvantages to this approach. You need to have a good plan and make proper planning before you sign a rent-to-own lease. If you don’t do this you might lose money. If you are not sure where you intend to live in the next 10 years or settle down, you might want to avoid rent-to-own leases.