Real estate in Kenya like many other investments in Kenya can be complicated and risky. Just because the real estate market looks appealing doesn’t mean it cannot go the wrong way. Many investors have tried, invested so much and walked away after disinvesting so much on this lucrative market.
But why do they walk away?
These are the mistakes to avoid when doing your real estate investment in Kenya
Not Consulting the Experts
It might look easy like I hear my friends say that even how maker can crack real estate investing. But, this is not true, you need to have a talk with the people who understand the trends. Real Estate agents like CommercialKe understand why you should invest in an apartment and not a bungalow. Why you should buy an apartment in this area and not the other area. Sometimes it is not about how the market is but how the market will be. You need to understand how the market has been moving to know the right path to take with your real estate investment.
Understand the ROI (return on investment for real estate in Kenya)
Do you understand the return on investment? Sometimes high rates in the marketing like pushing for a furnished apartment may be appealing but you need to put in place the short term stays, the vacancy rates, competition, depreciation and so many other factors that has seen so many people sell out their real estate assets just to pay the debts that the investment created and you end up back to where you started only this time, you don’t have the capital to invest again.
Paying too much for an investment
Before purchasing, understand that you need to know the market or the area average. Apartment for sale in Kilimani will be different from the apartment for sale in Kileleshwa or Lavington. The reason being the production costs are different, the cost of land, approvals and the convenience of the buyer. Developers to get profit to have a price per square foot for properties. So you need to know the average cost of properties in the area versus the average cost of property that your buying. Do not be deceived by the finished because these are elements you can easily upgrade but just a little investment. Get help and make a wise investment decision today.
Kenya market is volatile and just because you can see a complete product doesn’t mean it passed all the approvals. Unfortunately, in Kenya, you need to do a bit of background check before getting the apartment or the maisonette. This might be tedious and might take the fun of the investment process but it is worth. If this is too much for you, why don’t you get a trusted partner like CommercialKe to do it for you? When you finally have an investment, you can go to bed without worry that you will wake up and it will all be back to being a dream.
Thinking you will get rich quickly
You may have read that quote that “Most rich people did so through real estate”. Well, this is true, but it doesn’t mean they did it overnight. There was a lot of work and calculations put into it. The property doesn’t become profitable overnight. Real estate does not depreciate but it does not appreciate overnight either. You have to manage your expectations. You can buy a property and have it stuck in your hands for the year especially now that properties are being constructed every 300 meters in the developing areas. Well if you have a property that you have been trying to sell out, you can make the process easier by alerting a real estate agent like CommercialKe (Commercial Property Kenya).