Real estate is an imperishable asset, ever increasing in value. It is the most solid security that human ingenuity has devised. It is the basis of all security and about the only indestructible asset one can possess. It is something that pays you month after month, whether you are working or not since land appreciates with time.
However, like all other investors, risk is usually the first word that comes to mind when you think of investing in anything. Risk is inevitable as real estate is a game of numbers. When you put your money in this asset called real estate you should be ready to face any impediments that may occur.
The main reason you should invest in real estate and not any other is its profits. This is brought by the high demand for settlement and the country’s growth. The real estate industry is by far the richest among them all and was the third most popular investment method in Kenya in 2013. This investment is always booming because Kenya is a growing nation and has several towns in their development stage as well as ongoing projects all geared towards growth. The settlement has fast economic growth, and land value increases over time, yielding more profits.
When you decide to invest in real estate, you should not launch forward blindly but rather seek consultation from experts such as Denver Group Limited who will offer legal guidance and ensure quick, guaranteed, and secure processes as well as save on time.
When we look at investors, there are mainly two types and on one hand we have the smart investor and on the other we have the get rich quickly.
The smart investor knows how to budget and knows how to analyze trends as buying land is often considered as buying time
The smart investor will first think of the moves they will make. They will conduct research, look at their financial aptness, and evaluate themselves according to the business requirements. Should the investment fail, this smart investor will know how to re-strategize his moves and rise again to the top. The investor will also ask for a systematic exposition on areas they need more information on. .
The get-rich-quickly investor in literal terms means the investor who wants to get easy money and this investor ventures into the industry simply because he is out to get fast money. He is in it because he heard that the real estate business is burgeoning. This is where they go wrong because the real estate industry requires a lot of patience, time, and sacrifice.
The game plan applied in the real estate industry will highly determine the success, or the failure. It would be best to draw a well calculated plan showing your resources, the requirements for the construction, and the timeline for the work to be completed. You may be required to join forces with a real estate agent to assist in all the necessary work and procedures to be undertaken before the construction commences.
With light on strategy planning it is important to consider the market demands. This is a crucial factor in choosing where your business investment will be profitable. For instance, if we brought fourth investors, they would require offices to conduct their businesses hence the need for commercial buildings and constructions in the area.
As an investor, you need to check on the type of housing structures that are popular in the area and that are needed depending on the location. It would not be wise to construct an exquisite gated community or a bungalow in an area full of low income earners who cannot afford such housing.
When picking out a location to set up a construction, it would be best if you choose an area that is close to a developing town where the roads are all-weather roads, there is water as well as electricity and other social amenities suitable for comfort living to ensure it catches the eye of potential clients.
As a smart investor, you will have tones of ideas in investing. You can buy land and build houses and offices, then later rent or sell them, or you can buy the homes and offices and sell them at a higher value. The most credible option is to buy a piece of land and build the housing yourself.
When we talk of buying land, overall, this is the most delicate process in real estate investment. Most people prefer to hire a real estate consultant who will act as an agent between them and the seller. It is easy to fall victim to scammers hence the need for you to hire a lawyer who will conduct a search on the land from the Kenya Land Commission.
Before purchasing the land, you will need to survey it; you will need hire a risk assessor who will do a risk assessment to test the soil for wetness. The risk assessor is to determine that the land is safe and suitable for construction to avoid cases of the building collapsing or the area being water logged.
One can choose to buy land that the local authorities have already approved to cut on cost as this can be pricey.
Buying and selling
Choosing the best designs, materials, and property size suited for a region requires some expertise, and that is why collaborating with designers and architects is essential.
Advertising your property in a portal is usually done by the property companies. They also create up to date reports on your property as well as keeping the records for you.
Building a retail building is one very profitable idea. This is because these properties attract big brands like supermarkets, banks, and hotels that are out here looking for a regional outlet. From here, you can decide to sell or lease this property, depending on the invested capital and the interests it brings.
Other key steps to undertake are:
Determining the building height, size and seeking clearance from Social Authorities such as NEMA, Aviation authorities and roads council. All these are important because they avoid future problems like demolition.
Finally, you need to realize that the real estate business is up-and-coming if you are a smart investor. Before investing, make sure you consult, think carefully of your choices and contemplate the benefits and the downfalls before you commence in the business.
If you want to change your life, you have to do something about it. If you’re dreaming about investing in real estate, then you are steering in the right direction.