How to invest in the Real Estate Market
The Real estate sector is a multi-billion dollar investment which has witnessed a lot of growth in the recent years thus automatically becoming the preferred investment by a lot of Kenyans. This preference as a result of the growth witnessed in the country, has led to a surge in property prices.
Studies have revealed that around 60% of the people who want to invest in real estate go for residential developments.
Most wealthy Kenyans prefer investing in the real estate sector rather than investing their money in personal businesses, or precious machines.
The High Net worth Individuals (HNWI) are said to allocate 28% of their money in investing in commercial and residential property.
Kenya’s High Net worth Individuals have realized the long term stability and security that comes with making real estate investments. Apart from these, real estate investments also offer good returns.
The government has laid a lot of emphasis on housing as part of the Big Four Agenda, which is said to be Uhuru Kenyatta’s legacy project. The need for housing has started to be given the attention it deserves. Through this Agenda, Uhuru Kenyatta is said to build more than 500,000 houses.
Another reason why investing in real estate is the way to go, is that, in 2010 Kenya promulgated the new constitution. Devolution was the biggest part since it took place from the capital city Nairobi, heading to local areas. This resulted to people who lived in Nairobi moved back to the local areas to work with the counties. This as a result has caused a surge in these places.
Invest in a vacant piece of land
The best way to invest in real estate is finding your piece of property and doing the construction yourself. You should ensure you take caution in this process as land acquisition is a delicate matter and should be treated with much caution. A lot of people have lost their hard earned money due to lack of caution while acquiring land.
Nairobi area offers the best opportunities for real estate investments. You can also go ahead and decide on buying land in the cities neighboring the capital.
Areas such as Kamulu are in the outskirts of town, but are in close proximity to Nairobi CBD; thus, offering convenience.
In case you are buying land to wait till it appreciates then sell it, you may want to put it into use to avoid issues such as adverse possession in the future.
If you are buying it to construct your own home, take a deep breath, you can also construct your home and sell it. The property will have appreciated due to the structures on it.
If you are planning to buy vacant land and erect commercial structures on it, you may want to construct structures that are affordable to the general public.
The average salary in Kenya is less than 100,000 Ksh, but when you check property listings in Nairobi, you will find property going for millions of dollars and this is an unrealistic goal.
Most Kenyans cannot afford buying, or even renting such a property; thus, making it necessary for an investor to specialize in affordable housing if they want great returns.
Ensure you create awareness of your structure via marketing. This will go a long way in bringing you potential clientele.
The real estate industry is good to invest in if you would wish to make great returns, but like all other sectors, there is no standard value. The location of your real estate investment will determine the returns you make. Most investors have made a double of the amount of money they had invested in less than a decade; however, we have also seen people lose their money due to complications.
Be vigilant as you make this investment. Seek the services of an honest and transparent organization such as Denver Group Limited.