As individuals seek to diversify their investment portfolios, the real estate sector is increasingly becoming a popular investment option. Investors are seeking to build generational wealth through owning diverse properties, securing their future by having retirement homes and increasing their source of revenue through renting out or selling real estate properties.
Investing in the real estate sector has been proven to be a wise financial decision, as it provides predictable cash flow, excellent returns, tax advantages, and diversification that can help in building wealth, and an even wiser decision when you choose to invest in the Kenyan market that highly values the sector.
Are you wondering whether to invest in the Kenyan real estate sector? Do you wish to invest in the Kenyan real estate sector but are unsure? Well, below are some reasons why you should choose to invest in Kenya:
Government policies and regulations
The relaxed Kenyan regulatory environment ought to encourage you to invest in the Kenyan market. The Economic Survey 2023 explains how the number of buildings that were approved by the Nairobi City County increased by 58 per cent in 2022, paving the way for increased real estate investments. There have also been efforts to push for the implementation of the Sectional Properties Act which can be used to clarify and regulate ownership of apartment and office units that have increasingly taken shape in urban areas. As an investor looking to invest in the Kenyan market, such regulations should help you cement your decision.
The country’s great infrastructure, road and rail systems, which extend as far as the remote areas provide access which is a good incentive for real estate developers seeking to tap into such areas. These infrastructures are enabling real estate players to attract more and more people seeking to move away from the hustle and bustle of the city. Safaricom Investment Co-operative’s Olpajeta Ridge in Nanyuki is an example of a remote area with graded access roads that is greatly attracting investors.
Financial benefits and prestige
As the Kenyan population grows, there is increasing demand for land and houses in the Kenyan real estate market. This demand points to the opportunities in the Kenyan property sector. The Kenyan real estate sector offers numerous opportunities to reap financial benefits, from being able to rent out that house, offer Air BnB services, conduct commercial agriculture, to even being able to sell that piece of land which has increased in value, therefore giving you great returns on your investment. Furthermore, owning your own piece of land or house increases your level of prestige in a society that values ownership of land and homes.
Diverse investment options
Do you wish to invest in agricultural land, a commercial property, or a rental property? The Kenyan real estate market offers a variety of investment options such as rental and commercial properties, real estate investment trusts, and land, which cater for investors’ needs. The provision and availability of different options to choose from is an encouragement to the investor who needs to diversify their real estate investment portfolio and benefit from different avenues.
Are you convinced to invest in Kenya? Safaricom Investment Cooperative offers you real estate properties worth investing in. Visit https://sic.co.ke/ to get in touch with your investment partner of choice.
In Kenya, just as in many other societies, real estate investments are essential for wealth creation. Ownership of real estate properties brings a sense of social and political power which are mostly determined by the size of the property under one’s custody. As you search for property, you will notice that they tend to vary in price and at times the same type and size of house may be valued differently.
Below are some factors that influence the pricing of properties in Kenya:
Today’s real estate investors are looking for homes that offer convenience and accessibility in addition to comfort and security. The location of a property significantly influences its value and desirability.
Location can be used to determine the value, which is the measure of worth based on the future benefits anticipated to accrue, therefore determining the pricing of the property. Land and houses that are in prime locations, areas that highly attract both developers and investors such as beach houses due to their proximity to the ocean and sandy beaches or wealthy neighborhoods like Runda and Kitisuru that attract the affluent, may go at a higher price compared to other locations. Additionally, Properties that are close to key amenities such as shopping malls, schools, public transportation, and hospitals are viewed to be of a higher value and therefore sold at a higher price. Urban areas tend to draw a large population, increasing the demand for properties thus driving up prices as a result of intense competition for properties that may be scarce.
The overall state of the economy affects different sectors including the real estate market. Depending on the state of the economy, the pricing of different products in the real estate sector will vary. Employment rates, income levels, and interest rates affect property prices through shifts in demand for properties leading to higher or lower prices. Limited supply with high demand leads to an increase in prices. Further, when the interest rates for mortgages are high, it causes a reduction in demand for houses leading to a decrease in real estate prices and vice versa. A strong and growing economy tends to drive property prices up as people have higher purchasing power.
Infrastructure systems and facilities operate as the basis for a country’s economic growth. The development of infrastructure in an area influences the price of real estate properties. Availability of electricity, water, telecommunication services (internet connectivity and broadband access), and other utilities affect pricing since it makes the area attractive to live in, increasing demand for properties, the average property value alongside quality of life in such areas thus leading to an increase in prices.
The government comes up with policies and legislation on property taxes, deductions, land-use regulations, and subsidies that affect the price of land or property sold by real estate companies. Changes in these policies and regulations can affect property prices. For example, if the government decides to increase taxes like capital gains tax on real estate properties, this will likely lead to higher property prices and slow growth in the real estate sector. This is due to a possible decrease in the transfer of properties, therefore less supply with high demand.
Type of property
Though some developers may value houses of the same size differently, the size and type of a property has a significant influence on how much it will sell for. It goes without saying that a three-bedroom house will go for a higher price compared to a one-bedroom house in the same area. In the same manner, a studio apartment would be sold at a different price compared to a loft. The size of the compound that the home occupies may also affect the pricing whereby a children’s playground around the home may be valued more than an extra room.
As a potential real estate buyer or investor, it is wise to be aware of these factors as you make your investment decisions. Additionally, consulting real estate experts such as Safaricom Investment Cooperative, who have taken time to analyse locations and select places, can help in providing valuable insights into the specific market dynamics in Kenya.
To get in touch with SIC, visit: https://sic.co.ke/
Times are changing, the economy is evolving, and there is no better time for young people to start their investment journey than now. In as much as the youth try to keep up with the latest trends, it is important to think about the future and explore ways of securing it. There are different investment ventures to choose from that can help you plan for a more comfortable life in the coming years, one of them is investing in real estate. It is never too early to own your home or a parcel of land.Here is what you will enjoy as a young person in your 20s if you started your investment journey now:
A Secure Future
It can never be too early to start planning and preparing for your future. When you were a child, your parents or guardians had already started investing in your future by ensuring that you got an education. This same principle applies to you if you opt to invest your finances in the real estate sector. Investing early helps you secure your future and gives you the confidence that you will have a comfortable and peaceful life ahead. Investing with real estate developers like Safaricom Investment Cooperative who sell parcels of land such as the Brookvale Tuala in Ongata Rongai or homes like The Miran Residence offers you the opportunity to acquire land or a home that will serve you for life. This is especially such an exciting venture to explore when you are young to enjoy the benefits longer.
Are you tired of living paycheck to paycheck and feeling like your financial goals are out of reach? Building wealth in real estate may be the solution that you have been searching for. With the right strategies, anyone can create a path to financial freedom through investing in real estate. Investing in real estate is one of the ways you can use to multiply your financial streams. Real estate investments are a good way to make money and build long time wealth. You can acquire a parcel of land like the Zaria Village or a house in The Miran Residence which you can rent out making your investment serve you financially. Real estate is a proven method for long-term wealth generation.
Building your Investment Portfolio
One of the best reasons to start investing in your 20s is because the longer you own a property, the more valuable it becomes. By strategically investing, you generate passive income and build an appreciating portfolio. The sooner you start investing, the more time you have to earn money and build your investment portfolio. Real estate adds diversity to your investment portfolio, mitigating risks and creating balance.
In the hierarchy of human needs, security is one of the core elements, not only physical but emotional and financial as well. Regardless of your age and status, everyone needs security. Investing early helps in providing you with the financial security you need. It helps you have assets that will serve you when times are tough. You can sell that parcel or even rent out that house to help meet your needs. Moreover, when you are ready to start a family, you have a home to take your family to without having to think of rent.’
When you start investing in real estate in your 20s, you are training yourself on how to be responsible. Since you might have just started working, choosing to invest in real estate is a good lesson on how to handle your finances as you might be required to save to purchase that asset. You might also be required to take out mortgage loans which opens your mind to the financial literacy world. Putting your money into the correct ventures when young, helps you view money not as something to be used and forgotten but as a resource that can be used to serve your needs continuously. That land or home that you buy is evidence of your ability to organize your finances to serve you.
One of the best decisions you could make as a young person in their 20s is investing and investing with the right company. To invest with a trusted real estate developer, reach out to Safaricom Investment Co-operative and start your journey today.
Most people disregard the necessity of providing next of kin information. This often results in in a huge number of unclaimed property in Kenya. A number of these are mostly due to the unfortunate demise of the buyer without disclosing ownership of their properties to family members. Others do not indicate a next of kin, or if they do, they fail to provide accurate next of kin’s contact information or update it to have the current information. This has left large tracts of land unoccupied throughout the country, and many properties unclaimed.
When writing personal information requested by banks, government, employers, and even real estate agents, it is important to identify a next of kin. This ensures that someone will oversee your assets in case you are not around. A next of kin can be one’s closest living relative, spouse or a trusted individual that can be contacted in case of an emergency. Their details to be included in your documents are, official names, identification number, postal address, phone number and their relationship to you. These details are very important in land ownership.
Below are some of the reasons why you need a next of kin when making land investments.
Protects your investment in case of your absence
Indicating who your next of kin is and making it known helps in having someone you trust who will make good use of your land in the unfortunate event you die to ensure your dependents are well taken care of.
Helps in determining inheritance rights
We have heard numerous accounts of properties that have been lost due to protracted legal disputes over the distribution of wealth among family members. In the unfortunate event of your passing, naming your next of kin ensures smooth transition of your assets to your dependents and family members.
Makes decisions on your behalf
In the event of illness or death, your designated next of kin will have the authority to make wise and advantageous decisions on your behalf. They have the authority to determine who will inherit your property and even how it will be used to benefit your dependents.
Investing with companies such as Safaricom Investment Co-operative who encourage investors to update their next of kin details guarantees you that there is someone who will take good care of your investments when you are not able to.
As you embark on your journey to home ownership, you may encounter the dilemma of choosing to either build or buy a house. Before making your final decision, it is important to understand both options and to settle for one that best suits your means and needs.
Below are some of the factors to consider when deciding whether to buy or build.
Cost is a big determinant when making decisions on whether you should build or buy.
Building your own home comes with the construction costs, the cost of purchasing the land as well as other relevant fees for quantity surveyors, engineers, contractors, and county permits, approvals, and licenses for a great finished product.
Ongoing construction of the Miran Residence.
If you are looking to buy an existing home, the cost of the land and building are already factored into the purchase price. Safaricom Investment Co-operative offers beautiful and well-built houses like The Miran Residence that will cater for your needs and wants.
Therefore, calculate your costs and decide which option falls within your budget.
One of the advantages of building your own house is that you get to design your house however you like. You are able to decide the architectural design and the position and design of the rooms as per your wishes.
On the other hand, ready-built houses already have a design set in place that is not easily changeable, thereby suitable for individuals who are comfortable with the set design.
The decision to build or buy a house is also affected by location. Land used for development in Kenya is normally found in the outskirts of the city making building a house a more suitable option for people looking to set up holiday and retirement homes, or even individuals who are looking for a quiet place to settle down away from the hustle and bustle of the city.
If you need to live in or close to the city, buying a house is the better option as there are many apartments to choose from. Most houses that are being sold in the city are close to amenities such as shopping malls, schools, and hospitals, among others. Buying a house is also convenient for individuals who prefer the city and are working within or close to the city.
Conduct thorough research on the pros and cons of buying and building a house. Research about the developer you are buying the house from. Check their track record and the condition of their other finished projects to ascertain whether they are trustworthy and dependable.
If you are building a house check the track record of the contractors and the teams, you are planning to use. How well do you know them? Their terms and timelines they promise versus delivery. How does the contractor’s financial model work? Do they have clear accountability and work plans?
Consult with people you know that have prior experience and who will help you understand all that you need to know to make an informed decision.
Whether you decide to build or buy a home, ensure that you have all the facts at your fingertips and have thoroughly analysed your options to guarantee a smoother road to achieving your home ownership dream.
Safaricom Investment Co-operative provides you with both lands to build and ready-built houses that help you achieve your dreams. To acquire land or buy a home, visit our website https://sic.co.ke/index
Factors to consider when buying land
Owning land is one investment that many people are after as it is one of the most assured sources of wealth in Kenya. It is no wonder that most people are looking to have a title with their name on it as it is a way of generating wealth and security. With land, you can either buy to build a home, have a commercial development or even for farming.
While some inherit land from family, many people resort to buying land. While land for purchase is readily available in most parts of the country, buying legitimate land is still proving a difficult affair especially if you are purchasing it on your own.
Here are some of the important factors that one must put into consideration to ensure you are acquiring legitimate land;
Check the location of the land
Location is an important aspect to consider when buying land. If you are buying land for farming, then you would consider the soil type of the area, whether the area is an arid location, and if at all there is a water source. If buying land for construction, then you will consider if the location is ideal for construction. For example, is the area on riparian land? Depending on what you want to do with it, you may also consider whether there are amenities around such as hospitals, schools or even basic infrastructure like roads. Good roads network, sewerage systems and water availability are very important factors to consider before settling on a location. At Safaricom Investment Co-operative, all our properties have considered the location and amenities around to bring value and high returns on investments to our clients. Take for example Marina Gardens, it can be easily accessed using Thika Super highway or Kiambu road, as it is only 15 mins away from Thika Road Mall, and has many schools and hospitals around. Investing in land in such a location guarantees maximum returns on investment.
Carry out due diligence
Due diligence before purchasing land is very important as it ensures the buyer is protected against pre-existing claims over the property. When carrying out due diligence before purchasing land, you will verify the owner of the property using the original title deed. There are instances where a forged title deed has been presented to a buyer and this results in court cases. Fortunately, The Ministry of Lands has made great strides to digitize land records, making it easy to search for the original owner of the land before purchasing the land. Due diligence also involves talking to the neighbours of the land you are interested in. They might have insights into the land such as existing court battles or family wrangles. You also get to know your neighbours before purchasing the land.
Financing of the land
While owning land is desirable, financing the land can sometimes be a challenge. It is important to look at the payment options offered before purchasing land. There are some developers that will allow for flexible payments and some who will go an extra mile to get into partnerships with financiers such as banks or SACCOs to help clients with their financial needs in acquiring the property. Settle on a property that is within your budget or whose payment terms you can meet.
Co-operatives such as Safaricom Investment Co-operative and other land-selling companies have made it very easy for investors to buy land. This is because we have invested heavily in all the processes by ensuring that all the steps mentioned above are adhered to. We buy large tracts of land and subdivide them to sell at affordable prices complete with a ready title deed. In addition, we have invested in amenities such as water connectivity, security, roads and sewerage making their projects construction ready. This takes away all the hassle from you as the purchaser.
Do a physical site visit to property
Once you have identified the desired location and carried out due diligence, it is important to do a physical site visit to the property to identify and demarcate your boundaries. This visit is an opportunity to meet the seller, and help you confirm that the land is as advertised, have a look at the map of the area and identify where your land is or will be, by marking the beacons.
Check local by-laws
Every location has laws on what land can be used for. In some places, the by-laws prohibit construction, and in some areas, the land is demarcated as agricultural land while others are community land.
Every county’s land office has these records that will help you make the right decision considering what you want to do with the land. For example, you might buy land for commercial purposes yet the zoning regulations do not allow commercial developments. It is therefore very important to check the by-laws and align with what you want to do with the land before you purchase.
If your desire is to be a land owner, get in touch with us today via 0729-121212 and we can advise you on the available land available for sale and even provide access to finance from our list of financial partners that will make your dream of owning land a reality.
All our properties have considered the location and amenities around to bring value and high returns on investments to our clients.