Kenya’s population is rising every day, creating a high demand for housing. This demand has affected the prices of real estate as they continue to spike every day. If you are among the low-income population of Kenya, the chances for you to get decent housing are very low as these houses can get very expensive.
The Kenyan government has a plan that will settle this issue, The big four Agenda. It plans to build hundreds of houses in Nairobi that will be affordable to the middle-income population. While we are still waiting for this to be implemented in this government full of corruption, this is a very good investment.
In support of the big four agenda which aims at building more than 500,000 houses by 2022, the presidents authorised a tax relief of 15% for the affordable house beneficiaries and looped investors. This is a very good deal to take advantage of since the government will not build this home but through partnership.
Also, mortgages have become unaffordable for most Kenyans, with property prices increasing every day. This situation is yet to change not even anytime soon. But what are some of the reasons why real estate investment has continued to win over the years? The following reasons are the answers as to why you should do real estate investment
- Partnership with the government of Kenya
Thanks to the big four agenda, the government of Kenya has promised to work with the real estate developers and investors in Kenya to create affordable housing. These developers are investors who will benefit from a tax-free relief authorised by Uhuru Kenyatta.
This is a guarantee for great returns from these partnerships as the government, also, promises to give a good deal to them. One of the youngest real estate in Kenya Mi Vida is an example of a company that has taken advantage of the high demand for affordable housing. It sold 25% of its product as off-plan in the first months after its launching, a pointer to quick uptake after completion.
- Safe investment
The Kenyan real estate market has been proven to be safe and vibrant for investment. The market has ever since grown and even attracted foreign investors mainly because of its safety. If you were to compare the real estate investment to that of stock investment, the real estate wins. Many people look at the high capital growth of stocks investment, forgetting the big risks that are included. These risks can range from +ve 50% to -50% in a matter of a few days.
Real estate is a safe investment since its variations do not go to that extent. The difference between the 2 is enormous.
- Easy to start
Real estate investment does not need one to be an expert in it to to be a player. You only need to have enough money in the bank and know the type of property you are willing to invest in.
However, along the way, you might need assistance from a more knowledgeable person in the field. As the value of real estate keeps increasing, it is wise to do due diligence to make sure you invest in the right places where great returns are guaranteed.
- Ready information
While real estate investment includes doing a lot of research to keep up with the market, it is very easy to access information. This is the contrary in stocks where you will have to hit the ground from one place to another, seeking for information.
Researching online is the easiest way of getting information for real estate investment, especially from articles where you can educate yourself on different issues in the market.
Real estate is one of the easiest sectors in Kenya to get financing. The only requirement is to qualify for financing by meeting all the measures. While it might get hard to get loans at times, a high percentage of those who apply for loans qualify and get to achieve their dreams of owning a home.
It’s clear that real estate is the best option for investment, it is crucial to understand the market and its requirements. A real estate agent can be of help in different ways, promising you of great returns.