Despite the traditional belief that real estate has no risk, time and events have proven that real estate investment is not a risk-free venture. These are some of the highlights of things that you should have in mind when venturing into real estate.
Buy now
The Real Estate industry in Kenya appreciates very fast compared to other investments. The key strategy to gaining is investing now before the prices shoot further. If you use the method of saving then buy, it might be impossible or you will lose out on the opportunity. If you calculate, for some investments it is easier or wise to take a loan to purchase the investment as opposed to saving.
Location is Key
The three key principles in real estate are “Location, Location, Location”. You must analyze the area in which you want to invest in. Do your research and try to analyze the last 5 years and try to forecast the next 10 years of the place. If in the last 10 years, you were to buy lands of equal value along Thika Road, Mombasa Road and Rongai, right now, you would realize that these properties have very different prices enema though they had the same prices at the beginning.
Check the prices
Real estate prices fluctuate too quickly in Kenya and there are people out there who are taking advantage of these and increasing prices. Make sure you compare prices of an area do not just buy to the first option available to you. You can use price averages from reports created by some of the industry experts like Centum or HassConsult.
Get property option on real estate websites like Buyrent Kenya, Jumia, Property24 or CommercialKe. Their listing has price estimates or different regions that you can take advantage of.
Use credible channels
In real estate, you have to do the due diligence before purchasing properties. Ensure you have a lawyer present to guide you through the process. You can buy property on riparian land, the property next to a river or other government / public landmarks. Given that real estate is one of the biggest investments that you will make, it would be wise to use credible channels.
You can use credible realtors like CommercialKe or HassConsult who you know have a reputable history when it comes to buying and selling property in the Kenyan Market.
Inspect the property
If you’re buying a property like land. It is very important that you go and view the property before purchasing. In most cases, you find that the sellers have overpraised the land. The location estimates will be biased and information might not be accurate. If you do not want to regret it later, make sure that you view and inspect the property before purchasing.
Review various properties offered by CommercialKe on this link