Buying land in Kenya is a good investment strategy for good returns. The cost of purchasing land will vary from location to location, but the bottom line is with time, the value of every piece of land appreciates in value. As a landowner you not only get financial security but also peace of mind.<\/p>\n\n\n\n
Read: Top factors to consider before investing in property in Kenya<\/a><\/p>\n\n\n\n Once you buy land, there are two ways to generate cash<\/a>. This can be through active utilization of the land or holding the land and wait for it to appreciate.<\/p>\n\n\n\n Below, we evaluate in detail both passive and active ways that you can use your land to generate value:<\/p>\n\n\n\n 1. Buy and wait for appreciation.<\/p>\n\n\n\n 2. Develop the land.<\/p>\n\n\n\n 3. Divide into several plots and sell.<\/p>\n\n\n\n 4. Lease the land<\/p>\n\n\n\n 5. Farm on the land.<\/p>\n\n\n\n This is the most common way real estate offers a profit as Land appreciates<\/a> over time. Thus, its near guaranteed that if you buy land and sell it later, you are bound to make returns on it by buying and holding<\/a> onto it. appreciation in value happens when new developments happen like roads, schools, administrative offices or other infrastructural developments occur close or next to your land.<\/p>\n\n\n\n The only challenge is that the amount of appreciation is beyond your control.<\/p>\n\n\n\n Related: The Key Steps in the Process of Buying Land in Kenya<\/a><\/p>\n\n\n\n Depending on the location of the land, you may develop it to generate active income including building rental properties. The rental properties generate income while the value of the land keeps appreciating.<\/p>\n\n\n\n If you purchase a big piece of land, you can get returns by subdividing the land and sell off the pieces to other individual buyers. Subdivided land is more marketable as its easier to find a buyer for a smaller, more affordable parcel of land, as opposed to selling a bigger piece. Currently, Malindi<\/a> is experiencing growth and land is still relatively cheap. You may but 10 acres for Ksh 1,000,000 and subdivide to one-acre portions. You can then sell an acre at Ksh 200,000 and make at least half a million shillings after you take out subdivision and other expenses.<\/p>\n\n\n\n1. Buy and Hold<\/h2>\n\n\n\n
2. Develop It<\/h2>\n\n\n\n
3. Subdivide and Sell<\/h2>\n\n\n\n