Probably it has dawned on you that your sporting career will come to an end at some point. Remember, your salary will only be available to you for an average of 8-12 years depending on the sport you engage in. Isn’t this all the reason you need to make multiplying your revenue channels a priority item?
Does making money while you sleep sound interesting? Imagine watching money flow into your bank account as you are away on safari with your loved ones. This passive income can be yours if you invest wisely and at the same time minimize your involvement. Passive income does sound like a dream come true and One way of making it a reality is through Real Estate Investment.
There are several good reasons why you might want to invest in real estate in Kenya.
Buying land allows you to invest in asset where you are almost guaranteed that its value will habitually appreciate. Land values in major towns and their satellite townships have seen a rise for many years now and this is not expected to change anytime soon. However, this investment is not a get rich quick type of investment and in some cases it may take years before the land you invest in appreciates.
With a rise in population, the demand for housing and agricultural land has fueled a continuous surge in property prices, delivering huge returns to investors.
Devolution has recently made satellite towns in different parts of the country attractive to investors. Just look at the number of people willing to relocate to rural areas to work with the counties. The result is a surge in property prices in these places. If you are on a limited budget the suburbs with the potential to grow are the way to go. The low land prices and their ability to shoot within a very short period fuels their attractiveness.
You only need to indulge in the governments plans to make affordable homes a reality to see an investment opportunity. The government plans to build 500,000 houses through public and private partnerships.
“Any risks?” you ask. Well, because of its attractiveness, cases of people buying land whose title deeds later get revoked have become a common thing. We recommend that as you buy property be it from family members, friends or even complete strangers, make sure to verify the authenticity of the property. You can do this by enlisting the services of lawyers, land surveyors and other professionals. Considering how costly real estate investments are, it is always better to be safe than sorry.
What to consider
Are you buying to rent?
Renting out property is one of the easiest way of making an income from real estate. Well, it is easier than buying to sell. It guarantees you have a steady income monthly. Even better, you have the benefit of increasing the rent every year to reflect inflation and keep pace with competitors in your area. Buy-to-let provides a reliable source of revenue in the long term with careful planning.
3. It’s All About Location
Investing in the right location gives you a better chance of getting reasonable returns. A good location may have all or some of these characteristics. The more you tick the better your chances that you have invested well
- Safe and Secure Neighborhood:
- Reasonable Pricing
- Availability of Utilities like water and electricity
- Good road network:
Residential or Commercial
Returns for investing in residential property have in the past yielded more than commercial property. Investor preference is clearly shown by the many vacant commercial properties, while residential properties are always occupied in most areas. Commercial property usually has fewer tenants especially in the current age of work from home and online businesses.
Remember
When it comes to investing in real estate in Kenya, it is essential to take things slow. Focus on one particular property. Buy the best piece of land you can afford. Use a good developer who has done similar projects before. Enlist the services of professionals and for sure your hard work and patience will pay in the long run.
Image courtesy: rentfaxpro.com
By Irene Koskei
MSA Finance Expert