Why you should invest in Real Estate in Kenya
The world is changing and finances are fluctuating; hence, the need to invest is rising. There are different form of investment such as stock market, mutual funds, saving accounts, physical commodities, and also investment bonds. It depends with what you want. Below are reasons Why you should invest in Real Estate in Kenya.
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It is a safe form of investment
Kenya offers their investors safe and energetic property market where investors have an opportunity to invest their wealth safely. Property wins all the time when you feature in the return and risk, which are associated with shares and property. The difference in risk for shares is large, but they have higher capital growth. Investing in shares is a safer investment since you get higher variation. The risk in shares is measured in returns, variation, and capital gain, or loss and they range from -40% weekly and +40 yearly. Hence, it is hard to get such variation from property.
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It is easy to get started
Real estate investment is straight forward. You are not required to have professional knowledge to begin investing in property. In Kenya, many property investors had no intentions of gaining wealth through property, but they just bought a house for them to live in and after they realized that the value of their property was increasing they saw the need to invest in property since they saw they would generate a lot of wealth.
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It is easier to research than stocks and shares
Investing in real estate is much easier than investing in stocks and shares. In real estate you can look for property in online platforms and real estate websites. You can also do research of the property online and it is very cheap or visit suburbs, auctions, vacant houses or if it is land you can go for site visits. You need to have expert knowledge when investing in stock market. Hence investing in real estate is considered simple.
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It is relatively easy to get finance
Many moneylenders prefer loaning to people who are investing in real estate. In Kenya, financing institutions offer flexible rates and very exclusive rates for real estate acquisition. Most banks use home loans as their main commercial model. Most financiers like financing on residential property compared to other classes of assets since the financiers will finance an advanced quantity of the value and charge lesser interest rate compared to all other classes like money-making property. It is easier to borrow money to invest in real estate compared to when you want to invest in other classes of assets.
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You can use leverage
When you borrow funds to invest in property you have high chances of gaining access to the most powerful tricks in the financial book known as leverage. You are given more funds when you are using property as security compared to when you are using share. When borrowing to invest in property, the lenders can loan you up to 95% of the price of property while you will obtain 50 % when borrowing to invest in shares. This makes you gain capital from property. Invest in Kamulu Joska Plots for Sale with Denver’s.
