by SIC Writer | Aug 24, 2023 | Benefits, Buying Land, Did You Know, Real Estate, Uncategorized, Update
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:
Location
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.
Macro-economic environment
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
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.
Government policies
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/
by SIC Writer | Aug 14, 2023 | Benefits, Buying Land, Did You Know, How to, Real Estate
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.
Building Wealth
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.
Financial Security
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.’
Financial Literacy
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.
by SIC Writer | Jul 14, 2023 | Benefits, Did You Know, How to, Uncategorized
You have purchased your new home and now it is time to move in. Moving into your new home and having a new living space can be such an exciting moment, and therefore it is important to ensure that you do your best to ensure that your children are always safe while at home.
Accidents are most of the time unpredicted, and with our curious little explorers, chances of being involved in one accident or the other are high while playing around the home. It is not always possible to be there with them to supervise all their movements in order to keep them from harm or being hurt. This is why it is important to create a completely safe environment where they can be free to explore with minimal risks. If you are wondering how to do that, here are some useful tips.
Childproof your home
Identify any potential hazards in your new home and make the necessary adjustments. Install safety gates both at the top and bottom of the staircase to control your children’s access to the stairs. Use plug protectors for all the unused electrical outlets and secure heavy furniture to the walls to help guarantee your children’s safety. Most importantly keep any dangerous substances such as cleaning detergents out of their reach.
Secure the windows and doors
Ensure that you install child proof locks on all the windows and doors, especially windows that are accessible to the children. If you have to open the windows, ensure you use window stops when opening them. This will prevent the children from opening the windows wide enough to pass through which might be dangerous. As a safety precaution, you could also install childproof locks on all the doors leading outside the house.
Install smoke and fire alarm systems
You can never be too careful with your child at home. Install fire and smoke alarms in all the rooms in the house and have them checked regularly for efficiency. This will help warn you in case of a fire outbreak which gives you time to not only save your child but your home as well. Also, keep flammable materials out of reach including lighters, matches, stovetop burners, and hot appliances. Aside from installing these systems, also ensure that your older children are trained on how to use and manage fire and smoke systems and equipment at home.
Install home security monitors
When choosing your home, consider an area with a security system set in place, but you could also add additional security cameras in the house that will help you monitor your children’s movements. This will enable you to know when your child is in trouble and help you react faster to avoid fatal home accidents.
Home ownership is an exciting journey but an even more exhilarating experience when you are assured of the safety of your children, invest with Safaricom Investment Cooperative to find a home that is suitable for you and your family. To invest, visit the Safaricom Investment Co-operative website: https://sic.co.ke/
by SIC Writer | Jun 22, 2023 | Benefits, Did You Know, How to, Real Estate, Uncategorized
You have finally concluded your search for a new home, whether by building or buying, and you are now in the exciting part of moving in, congratulations!
In this new phase of your life, you might be wondering what is needed of you and how you can ensure that your new home maintains good standards while ensuring that you are pleased with your investment decision.
Below are some tips that can help you as a new homeowner enjoy your investment.
Set Up a Home Upgrade Budget
As you start your home ownership journey, it is wise to set aside a fraction of your money for unexpected upgrades, changes or sometimes repairs. Setting up a home upgrade fund helps you avoid making a big dent in your budget if a huge upgrade needs crop up. For quality investments in homes like The Miran Residence, this stash of cash may be redirected to things like service charges or even decorating and furnishing your new home.
Personalize Your Home One Step at a Time
Getting a new home is a huge investment that takes a lot of effort especially financially. It is okay to take personalization of your living space with, for example, lighting and décor needs, one step at a time. This helps you have time to recover both financially and mentally which will help you choose the best items for your new home without having to consider a tight budget. Give yourself time to adjust to homeownership’s expenses and rebuild your savings; the cabinets and furniture will still be waiting for you when you can comfortably afford them.
Get to Know Your Neighbourhood
Moving to a new neighbourhood can be intimidating, however, you ought not to worry. Take it one step at a time and explore your surroundings. Get to know where you can get your essentials nearby and understand the environment you have moved into, which will improve your chances of fitting in and enjoying your new phase of life. Get to know the people who live around you. No man is an island, and your neighbour might be just what you need to start enjoying the neighbourhood. They will be one of the first people to come in and aid in case of trouble. Knowing your neighbours also provides you with a sense of community and helps you develop meaningful connections. It is also important to get contacts of key suppliers such as electricians and plumbers.
Never Ignore Crucial Maintenance
Home ownership requires you to carry out maintenance of your home yourself since you are your own landlord therefore you should not neglect any problem that puts you in danger or could worsen over time. Delayed action can turn a relatively small problem into a much larger and costlier one. Safaricom Investment Cooperative sees to it that your home is fully inspected before you move in and is as per world-class standards. For instance, The Miran Residence in Ruaka, is a modern world class residence being built using quality materials that will protect you against potential maintenance issues.
If you are looking to purchase a house, Safaricom Investment Cooperative provides you with quality homes that you can be proud of. To see some of their housing projects, visit the SIC website: https://sic.co.ke/house-projects
by SIC Writer | May 29, 2023 | Benefits, Buying Land, Did You Know, Real Estate
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.
by SIC Writer | May 19, 2023 | Benefits, Buying Land, Did You Know, Real Estate, Uncategorized
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
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.
Design
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.
Location
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.
Research
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
