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.’