Land as a Financial Investment

Land as a Financial Investment

We consider Land as a Financial Investment in Real Estate

Land is a financial investment that people looking forward to invest in property should put more emphasis on. As an investor you should put your money in investments that you understand and where you can afford. Investors who are planning on investing in land should do it due to one of these reasons.

  1. You are planning to build a home and settle there.

Have been dreaming of becoming a homeowner in the future? What are you waiting for? Buy land now and your dream of owning a home will come true whether you will build now, or in future. Most people buy land in the outskirts of Nairobi and build there while they are still working in Nairobi CBD. Development of roads has made it easier for people to travel easily from one place to another. For example, you can buy a piece of land lets say an 1/8th along Kangundo road and build your home while you are still working in Nairobi town, travelling will be easy due to the availability of a good transport network.

  1. You are holding on to it for speculative purposes.

The value of land appreciates with time and its value is determined by the market. For example, Land bought over 5 years ago cannot be sold now at the same price it was bought. Development of infrastructure like roads, residential properties, availability of electricity, and water as well as availability of social amenities like schools, hospitals, and shopping malls increases the value of the land. You can determine the value of your land by engaging a professional land valuer.

  1. You intend to lease it out

You can decide to purchase a piece of land and lease it out to investors at a fee. Some investors hold land but they do not have enough capital to develop the land and they cannot sell the land so the only option they have is to lease out to other investors who want to run their projects at a fee. For example, you can lease out the land for like 5 years and be charging a fee bi-annually, or annually depending on the contract. Through this, you will get profits on your land investments.

  1. You plan to put up investment projects

Instead of purchasing land and leaving it vacant, or leasing it to other people, you can also run your projects there. You can use it for farming, set up recreational facilities like restaurants and swimming pools; you can also build either residential, or commercial rentals where you will be earning some income. This will enable you get returns on your land investment.

When individuals are buying land they have numerous questions in their mind, for example, how many 50 by 100 plots are in an acre? Well, contact us and we will help you understand the number and the process of sub-division in Kenya. Call us: 0701 730 267.