The Kenyan market is presently awash with people rushing to cash in on the scarcity of land as each of them wants to get a piece of the Kenyan dream.
WHICH PROPERTY TO INVEST IN?
The Kenyan market is presently awash with people rushing to cash in on the scarcity of land as each of them wants to get a piece of the Kenyan dream. Most of these people are first time land owners who are in it to make a quick kill and get out fast – a speculator, as they are referred to. In finance, speculation is the practice of engaging in risky financial transactions in an attempt to profit from short term fluctuations in the market value. Since land tends to appreciate in value over time due to factors such as scarcity, it is assumed that land bought in the middle of nowhere presently, will be a gold mine in a few years. Therefore, a speculator invests with the hope that the investment will actually work and make money. Sometimes a speculator gets lucky and makes money, but other times the investment just turns out to be a pipe dream.
Just like any other investment, there is a skill and education that needs to go into real estate investment. There are certain aspects that you need to look out for if you want assurance that your investment will make money in the future.
In this market, there are many quacks peddling themselves as realtors. Their best arsenal is a silver tongue which rolls out all the buzz words that clients want to hear when buying real estate such as; near the highway, thirty minutes from the CBD, the headquarters of the county are to be set up here, there is a bypass coming up soon and et cetera. All these aspects are to be considered before making any investment, but though shalt not jump in head first before performing any due diligence.
This is where real estate consultants come in; taught, accredited and experienced individuals who understand the market dynamics and can provide adequate information to their clients.
Some factors to consider during property investment:
Proximity to urban areas
Most satellite towns have the propensity to make for an ideal investment in the future. These towns start out as rural areas that then develop into “bedroom towns” and finally snowball into town centers that are able to hold their own. It takes a keen eye to recognize these “kimberlites” and with the right investment, they turn out to be diamonds.
The other aspect to follow is the laws of the land. As time goes by, the Government realizes that more needs to be done to propel the country in the right direction of development, this is one of the reasons why the new Constitution of 2010 was promulgated. With it, came the advent of the devolved system of the government in Kenya. Devolution brought to light many land investment opportunities that were hitherto not known to many people. For too long, investors felt restricted that the only areas that could offer better returns were Nairobi and its metropolitan area.
Many more other factors should be considered when looking for the ideal property investment, but if we were to mention all of them, then you wouldn’t give us a call, would you?