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You Should Know This About Valuation

You have probably come across them. It’s not difficult to identify them; they are either measuring your walls with a tape measure, trying to determine your boundaries or asking you to accompany them as they go through your house.

Welcome to valuation, the profession of those who studied land economics, or a Bachelor of real estate, as it is now called……Read More

Apartments attract better returns

Most investors have in the past few years invested in apartments with hopes of selling but sales have not been robust, this has been blamed on security concerns. Consequently,some investors have converted use of the units into rentals for conference facilities. Most conference organizers rely on facilities offered by hotels due to the lack of convention centers in the city….Read More

C.E.O’s take on Value in Real Estate Investment

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 Charles Peter Mwangi, Valuer,

Chief Executive, Ruby Land Limited

 

Investing in real estate is merely a matter of locating a potentially good investment and determining how best to leverage that investment.

“I always advise clients interested in getting into this market to start early. Then, using the advantage of the opportunities in real estate, to  build their  wealth,” Mr Mwangi says.

One important thing people need to understand is that the property market is always appreciating. But it’s also important to have your investment in a place that will capture that appreciation.

“I see many people investing in  land, which is a good thing. But the  question here is, where is the land located? Are there amenities around it? How many idle pieces are there?” Mr Mwangi notes.

He adds that it is important, especially for someone investing in  land or property for sale, to be in an area where they can get real value, as well as clients, in a whiff.

“For instance buying land deep inside Kitengela will not do much for you when you are selling it compared with someone who positioned themselves and got the same size of land in Kitengela, but closer to the road and amenities. They will get more than you.  Positioning yourself properly ensures that you stay on top of the market, and  that you also reap handsomely,” Mr Mwangi says.

There is a myriad of resources available to beginning real estate investors. From your resources and connections, which include investment groups, work benefits like special mortage rates, saccos and even network of friends network. All these can be used to ease your entry into the market, minimize risks, and maximize your returns.

How to acquire and Multiply Property

INVESTING IN PROPERTY now should be on top of the list for any young person. Just like in the ’90s, when the stock market was the in thing, having your own registered title deed is a must today….Read More

Growing Middle Class gives Nairobi Global Appeal

Interest in Nairobi is driven by high returns on investments at the Nairobi Securities Exchange where recent introduction of Real Estate Investment Trusts (REITS) is seen as a safe bet for foreign investors seeking a share of the real estate pie….Read More

Buying or renting out a house is not always the best investment

There is nothing as comforting than living in your own house, but if such comfort leads to you spending more than you invested, would it still be worth it? Having one’s own house is considered one of the greatest signs of success in Kenya, but as we are about to find out, this may not always be the case…..Read More

Keep an eye on Ruaka, Kiambu County

Four years ago, Ruaka Town in Kiambu County consisted of a few shops and simple residential flats. However, the area has undergone a radical transformation in the past few years, thanks to the construction of the Northern Bypass.

The construction of the bypass opened up the area and saw investors rushing in to build homes, which are highly regarded for their attractive returns…Read More

NAIROBI INVESTORS ARE NOW EYEING COAST

Nairobi-based real estate and equity firms have expressed interest in investing at the Coast, a market that has in the recent past been shunned by investors due to security concerns.

Fusion Capital, a real estate developer and financier, and private equity firm Cytonn Investments, are some of the companies that are putting their money in the coastal region.

While Fusion has competed the first phase of a Sh1.3 billion project, Cytonn intends to invest…..Read More

Investing in Real Estate? Avoid this

Investing in Real Estate is the best deal but it is not surprising to find that almost 50% of Kenyan investors who invest in real estates regret having made a bad decision. Do you know why? Very few of them take time to search for information to guide them when it comes to making their investment decisions. Hardly do you find an investor in field work gathering information on real estate property. They just sit back and wait for an advert on any property available for sale where they rush to buy it. If you don’t want to make these mistakes you should consult a real estate consultant who will do the research and give credible advice to you. The following are some of the mistakes you should avoid.

  • Wrong choice of an Agent
    Selecting an agent with whom you neither connect with nor is he committed to learning and meeting your needs. Since an agent is your guide in the whole buying and selling process look for a person who is genuine and a person who you can trust. Choose an agent who is registered such that in case of any miscommunication and any fraud you can easily get to them.
  • Failing to get pre-qualified.
    Don’t run to the decision of buying a house before you pre- qualify for a mortgage or bank loan. This will help you get a clear picture of the kind of a home that you can afford. Pre-qualification is your flag that signals to sellers and agents that you’re ready to find your dream home.
  • Skipping the inspection.
    Inspect the house to know if there are any chances of basement flooding. Inspect to identify any faulty plumbing which may turn out to increase costs in the end. Skimping on your home inspection may seem as one of the money-saver strategies to many but it will end up making you spend a bundle in home repairs in the future.
  • Making your search too narrow.
    Many investors limit their search on real estate property only to adverts but there are other publications, search engines, and bulletin boards that contain information on real estate property. Establishing contact with a qualified real estate agent will greatly help since many of them have access to listings at the very moment they hit the market. An agent will also make a quick connection which will open the door of your dream to get for yourself a home.
  • Misunderstanding the total price tag.
    Consulting an agent when hunting for homes will help you know the closing costs in excess of the required down payment. An agent will give you information on , taxes, inspection costs, title ,insurance, and legal fees that can creep up. This will help get a clear picture of the whole amount you are to gather to be able to seal the deal.
  • Thinking in the short-term.
    Always think in the long-term by considering the size of your family in the few years and the condition of the property in a few years to come.
  • Overlooking insurance considerations
    searching for information on insurance premiums and coverage levels will help get a clearer picture on the financial needs and may also help you pint out more risks that you had not put into consideration.
  • Opting not to take a home protection plan.
    Taking a home protection plan with your mortgage company is a short-term insurance plan to hedge against repair costs and other hidden costs.
    Exercise patience and wide search of information to avoid common mistakes that real estate investors make daily.

Buy land today and smile in future

As the real estate industry continues to boom in Kenya, many are looking to invest in property. Real estate investments have lower risk than stockand Forex trading. There is a wave of owning a house or land in Kenya and many high-net-worth individuals as well as investment analysts areconfident in real estate investment.

There are several benefits of investing in land as opposed to other types of properties.

  • You do not have to do anything to vacant land.
    Once you buy land, you do not necessarily have to spend extra to maintain the land. You can sell it as it is. What most people do is to put a fence round a piece of land as evidence of ownership.
    Some agents will develop the land by connecting electricity and water, and constructing roads to raise the value of the land and sell it faster.
  • Land is a ‘hands off’ investment
    You do not have to deal with tenants or fix any leaks or other issues that come with owning a house or a building. Investing in land gives you peace of mind because it is a long-term investment and a tangible asset that does not wear.
  • Valuable resource
    The fact that they are not making more of it, those who invest in land have an asset that is in high demand. Do not be in a hurry to sell it off. Once you buy a piece in the right location, it will make more sense in the long-term and get you good returns. For example, land that was worth Sh50,000 a decade ago is now worth between Sh.3 million and Sh.5 million per acre.
    Start small and buy some of the land going for Sh.100,000- Sh.250,000 now. As they say, ‘Do not wait to buy land, buy land and wait.’