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10 Reasons to Invest in Real Estate in Kenya

Many have desired to term themselves as investors. They have been advised that real estate is a good place to start but they are fearful and extremely cautious. Let me give you reasons why to invest in the real estate industry in Kenya.

Land is an appreciating asset. The fact that it’s fixed in supply against an ever increasing demand, raises its value profusely. It greatly differs from an investment like a tractor that depreciates year in, year out. The demand for land will never cease. It’s a major factor of production. That means you need land for you to move to the next step. Without land you can’t farm, can’t put up that processing plant, can’t put up that retail outlet, and can’t even put up that office block. It’s the genesis and much more than an asset.

Different investors have different risk appetites. Risk averse investors like surety or guarantee on their investment while risk takers go all in as; high risk, high return. Real estate is an investment that is suitable for all investors. It offers stability. Unlike stocks which fluctuate and can quickly go south owing to unforeseen circumstances, real estate prices remain relatively stable. This is imperative as no investor wants to experience a loss. The most preferred option is things remain unchanged or positive returns are gained. Dear investors, don’t you agree?

The greatest wealth generation advice ever given is: make money while asleep. That’s exactly what this industry can do for you. Rental property are a great way to get passive income. So you buy a parcel of land, build an apartment block of 20 units and charge KSh. 25,000 for each. Each month you’ll be earning a gross income of KSh. 500,000. A good number considering you only had to put in the initial hard work of putting up the complex and sourcing for tenants then start laughing all the way to the bank.

It’s is said to be an African thing to hold land in high esteem. Children are advised once they come of age, that it’s important to have a piece of ground with their name on it.  It might not really be an African thing. The next world war will be about resources and they are predominantly found on or under the earth’s surface. I say, it’s all about seeing the value and better future this resource can provide. For many generations till now, land is sold to take children to school, pay hospital bills and even pay dowry in some cases. It is the pathway to achieving that dream.

Business is meant to be a fair playing ground. That’s why it is said not to mix business with pleasure. A commensurate price tag is placed against the value of any given good or service. Likewise, the higher the loan request, the higher the value of the asset offered as collateral. This is a system that was practiced even in the ancient times. Shylock, in the book ‘Merchant of Venice’ for example, asks for a whole pound of flesh in case of failure to repay. Looking for access to higher funding? Get a high value bankable asset. Best place to find it is in the real estate industry.

Nothing is more satisfying than the presence of endless possibilities. So you have a piece of land. What to do with it? The answers numerous. Build your family home, or farm, maybe plant trees, or build an apartment block, possibly put up a go-down, or build a school, even a mall. There is so much you can do. It all depend on you. A great asset offers you possibilities and that’s the beauty of investing in real estate in Kenya.

Real estate is said to be the driver of personal wealth. Most billionaires are said to have grown their worth from this industry. Need I say more?

Many live their lives based on society’s expectations. What will my father or mother or wife or husband or grandfather think or say? They end up living another person’s life. There is absolutely no crime whatsoever in living life on your own terms. Live in freedom. Who said you can’t build your house in such a way that the parking is next to the living room. Who said the entrance has to face north? In real estate; you dream it, we build it. That’s freedom. Don’t be mistaken though, don’t break any legal rules.

A good investment offers you easy entry and exit i.e. a simple way to purchase the asset and quick way to dispose it. In this industry, once money is availed, the title deed is availed. This applies to both when buying and selling the land.  You have the option of walking away any time. From the characteristic of a good investment, which this one is, why not invest?

We try not to think about it much as it evokes the feelings of sadness and a bit of fear. Legacy is the big word. Most cases when one thinks of a legacy, they think of one who has already moved on to the other side. It will happen eventually, so why not plan for it? What impact will you have made? A real estate company will pride itself in settling families. A dad, in providing a good home for his family. You?

Allow Kenya’s real estate industry to give you ownership to an appreciating  and bankable asset, stability, passive income, a better future, diversity, growth of personal wealth, freedom, ease of entry and exit into the industry, and a lasting legacy.