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Mistakes to Avoid When Investing In Real Estate

Mistakes to Avoid When Investing In Real Estate

In Kenya today, the real estate sector is one of the biggest investment avenues with various investment opportunities such as land, residential, commercial, retail, industrial, and publicly traded Real Estate Investment Trusts (REITs). With the real estate sector being as profitable as it is, more investors are choosing to venture into it looking for profitable opportunities which at times may be accompanied by mistakes that could have otherwise been avoided.

Below are some of the common mistakes that one should avoid making when investing in real estate:

Not consulting a certified real estate professional

The most important but usually overlooked step before one starts their real estate investment journey is consulting a real estate professional. These experts possess in-depth knowledge of the market, including property values, trends, and legal requirements. They provide critical insights that help investors make informed decisions, help navigate complex processes, and identify potential issues that may not be immediately apparent. By leveraging their expertise, investors can avoid costly mistakes such as losing their hard-earned money to real estate frauds.

Not conducting proper research and due diligence

When it comes to investing in properties the need to conduct extensive research on a prospective investment is crucial. Over the years, we have seen investors being evicted from properties that were either termed as riparian or illegally sold. Proper due diligence helps investors identify any potential crises and avoid properties that may require costly repairs or face legal challenges. This comprehensive assessment determines the future performance and viability of the investment by examining for risks such as flooding, landslides and other possible problematic issues that could significantly impact the property’s value and usability. Without due diligence, investors may face unexpected complications and great financial losses. At SIC we offer properties such as our Bluebells Apartments Phase 1 in Machakos County which have undergone proper due diligence guaranteeing investors security in their investment.

Not having a clear investment plan

Not having an investment plan can lead to poor decision-making and overspending. It is important when investing in real estate to always have a plan to help guide the process and ensure decisions are aligned with long-term goals. The plan does not have to be complicated, but it should answer the questions, “What, Why, and How am I investing?”. This means identifying what type of properties to invest in, understanding why these investments align with your financial goals, and outlining the specific strategies and steps to achieving your goal. By answering these fundamental questions, an investment plan provides a clear framework for making informed decisions, avoiding common pitfalls, and maximizing returns.

Poor financial management

Two of the biggest pitfalls for real estate investors are poor financial management and overlooking hidden costs. While making a profit is the ultimate goal, failing to properly account for expenses beyond the initial purchase price can significantly impact your bottom line. Property management fees, property taxes, routine maintenance, and potential repairs all need to be factored in. By thoroughly analysing these costs and implementing sound financial practices, you can ensure your real estate venture becomes a source of steady income, not a financial burden.

Not diversifying your portfolio

Another significant mistake often made in real estate investment is the lack of diversification. While real estate does offer exciting opportunities, diversifying your portfolio is key to mitigating risk. Putting all your eggs in one basket exposes investors to heightened risk such as market fluctuations. Diversifying across different investment opportunities such as land or housing can help mitigate risk and create a more stable and resilient portfolio with a better chance of achieving your long-term financial goals.

At SIC, we can help you avoid these common mistakes and ensure a secure, profitable, and well-managed real estate investment journey. Visit https://sic.co.ke/ to get in touch with your investment partner of choice.

The Benefits of Using SIC Prime for Your Real Estate Investment Needs

The Benefits of Using SIC Prime for Your Real Estate Investment Needs

As the world embraces the new age of technology with Artificial Intelligence (AI) and new advancements in different sectors, the time for the real estate and property space to embrace this shift is now. As your investment partner of choice, we have identified this gap in the market and introduced our new business line, SIC Prime which is here to revolutionize how investors and developers connect with buyers, sellers, and renters through its one-stop property marketplace.

SIC Prime brings the power of e-commerce to your fingertips, making real estate simpler, faster, and more accessible than ever before. Some of its benefits are;

Virtual Tours

House tours can be time-consuming and tiring as you move from house to house. With SIC Prime’s virtual capabilities, this is a thing of the past as you move around your prospective home in 3D space, planning potential décor and getting a true sense of the space all from the comfort of your couch. These virtual tours give you access to our numerous real estate spaces in different counties from Bluebells Apartments Phase 1 in Machakos County to the upcoming Miran Residence in Kiambu County.

Streamlined Transactions

Acquiring a real estate property can be challenging, with an increasing risk of scams a trustworthy third party is necessary. SIC Prime allows investors to securely handle paperwork, negotiations, and even close deals online with the assurance that their transactions are not only secure, and transparent but also convenient.

Building services

Building a dream home or a commercial space can be a daunting task. But SIC Prime’s building services give developers and investors access to a team of verified and experienced professionals including architects and construction managers who are committed to delivering unparalleled building services. With its turn-key project management arrangement, we take care of everything to ensure that your project is completed exactly as envisioned.

 Personalized Search

SIC Prime offers a diverse range of curated property portfolios, powered by powerful filters and AI-driven recommendations that align with investor needs and aspirations. From cosy apartments such as the Blue Bell apartments phase 1 in Machakos County to luxurious studio lofts at the upcoming Miran residents in Ruaraka, SIC Prime provides access to lucrative opportunities and enables investors to manage their portfolios seamlessly and effortlessly.

Interior Design

We understand that a home is not just a place to live, but also a reflection of your style, preferences, and personality. That’s why with SIC Prime, we offer a wide range of interior design services, including space planning, consultations, access to skilled craftsmen, art selection, and installation to create a custom interior design that is unique to your tastes and preferences. Whether you’re looking to renovate your entire home or just one room, we are here to help you bring your vision to life.

Ready to experience the future of real estate? Visit https://sic.co.ke/ to get in touch with your investment partner of choice.

A Guide on How to Build a Sustainable Real Estate Portfolio

A Guide on How to Build a Sustainable Real Estate Portfolio

As we face the harsh reality of climate change and the numerous effects it is having on us, the question of what we each can do to contribute to a favourable outcome is one that still lingers. As a company, we are taking steps towards creating a real estate space that is profitable, resilient, and environmentally conscious.

Here is a guide on some key insights and strategies for creating a portfolio that not only thrives financially but also contributes to a sustainable landscape:

Embrace New Technologies 

Maximizing the potential of technology is a crucial aspect of building a sustainable real estate portfolio. Embracing new technologies not only benefits the environment but also offers cost-effective solutions for investors. A prime example of this forward-thinking approach is evident in the construction of the Miran Residence in Ruaka, Kiambu County. Here, we are integrating formwork technology into the building process, facilitating faster, more sustainable, and cost-efficient construction practices.

Architect standing in modern architectural office using virtual reality goggles to view 3d plan of white foam maquette. Engineer working with vr headest next to table with model of urban project.

Consider the Lifecycle of the Property

When investing, it is important to focus on the properties that provide long-term value for you as an investor. Buildings, like people, go through a life cycle from location selection to renovation. When investing in real estate, therefore, it is important to consider the construction methods, long-term cost, return on investment, and how sustainable the investment is as variables that will affect the value of the property over time. Bluebells Apartments Phase 1 in prime Syokimau, with its wastewater treatment, solar street lighting, and gypsum ceilings, is an example of a property that will have a long lifecycle proving a valuable investment.

Consider Community and Transit Planning

Building a sustainable real estate portfolio not only focuses on the building process but also critically the quality of life for homeowners or tenants. With this in mind, the importance of investing in properties with easy access in terms of transit and amenities will greatly benefit you as a property owner or investor, as they are more likely to attract tenants meaning cash flow and better resale value. The Miran Residence in Ruaka, a growing metropolitan area with easy access to roads and amenities, is an example of a property that is likely to experience value increase as the area continues to develop. Some of the reasons for the potential increase in property value are its proximity to shopping malls, restaurants, entertainment areas, and major hospitals.

Explore Government Incentives

With the Kenyan government’s 2023–2027 Environmental Strategic Plan which has a key focus on climate change adaptation and mitigation, incentives to encourage sustainable practices in real estate such as tax breaks and grants to projects that prioritize renewable energy are an important consideration for both developers and investors alike as you build your portfolio.

Are you convinced to invest in real estate? Safaricom Investment Co-operative offers you real estate properties worth investing in. Visit https://sic.co.ke/ to get in touch with your investment partner of choice.

Diversifying Your Portfolio: The Benefits of Investing in Real Estate

Diversifying Your Portfolio: The Benefits of Investing in Real Estate

Real estate is an attractive alternative investment offering investors the chance to achieve long-term, stable, and attractive returns. Kenya’s real estate market compares greatly against other asset types such as stocks, cash, and equities. Over the past five years, the sector has seen immeasurable growth driven by attractive returns and more investment by investors.

Given this notable track record, below are some reasons why you should consider investing in real estate:

Potential for Appreciation

Kenya’s real estate market has shown resilience and growth, driven by factors such as urbanisation, population growth, government policy, and an increasing middle class which has created opportunities for appreciation as demand for real estate has increased resulting in property values rising. This ability to gain an extra layer of return on the investment makes real estate a valuable asset in your portfolio. The Brookvale Tuala Phase 1 in Ongata Rongai is an adequate example of this as it has experienced a rise in property value as it has developed into a residential area with an ever-growing neighbourhood.

Tangible Asset Value

Real estate’s tangible nature in the form of physical assets such as land and buildings provides inherent value and a sense of security for investors while also providing a utility by the fact that they can be used or developed in various ways to generate income. Our Bluebells Apartments project is an example of a successful and valuable tangible asset available to investors.

Risk Mitigation

Real estate’s considerably stable nature over time when compared to other assets provides investors with a dependable asset which helps reduce the portfolio’s overall risk by offering a buffer against market volatility and economic downturns. In the case of Kenya which has been experiencing economic strife in the last two years, the real estate and property sectors have been flag bearers as property value has grown exponentially as evidenced by its contribution to the country’s Gross Domestic Product (GDP) during this challenging period with the societies properties such the Olpajeta Ridge and Kiambu Marina Gardens value remaining relatively stable.

Inflation Hedge

Real estate has historically been a hedge against inflation with the sector’s unique position of having the value of physical assets like land and property increase in tandem. Additionally, real estate investments have the potential to provide rental income and give investors the ability to adjust rental rates providing a revenue stream that tends to keep pace with or outpace inflation. Our range of properties from Zaria Village to Oakwood-Kitengela are acting as sufficient hedging assets for investors during this ongoing inflation period that the country has been experiencing.

Diverse investment options

Real estate as an asset offers varied investment opportunities for investors depending on their financial goals and risk tolerance. The sector’s diverse properties offer unique potential returns from residential to commercial properties. Real estate investment vehicles such as Real Estate Investment Trusts (REITs) and joint ventures provide investors with accessible and diversified avenues to participate in the real estate market with the option of either directly owning physical properties or not. At SIC we offer the opportunity to invest in a range of property offerings in different areas across the country thus allowing investors to gain exceptional value and returns for their investments.

Are you convinced to invest in real estate? Safaricom Investment Co-operative offers you real estate properties worth investing in. Visit https://sic.co.ke/  to get in touch with your investment partner of choice.

Tips for Selecting a Good Real Estate Property Lawyer

Tips for Selecting a Good Real Estate Property Lawyer

A lawyer is a professional who is qualified to offer law advice or represent someone in legal matters. Their roles vary across different legal jurisdictions. We have property lawyers whose role is to oversee legal matters related to real estate properties, such as buying, selling, leasing, or renting property. They also help clients in resolving disputes related to property ownership. Hiring a good property lawyer is crucial while engaging in real estate transactions.

Below are some of the things to consider when choosing a good real estate property lawyer:

Registration

When choosing a lawyer, be keen to confirm if they are registered by the Law Society of Kenya since this is a testament to their legitimacy. You can do this by searching their official names on the Law Society of Kenya website. Additionally, confirm that the lawyer has not been implicated in any malpractice cases or has not had complaints from the Advocates Complaints Commission as a result of unethical activity, since these might be red flags.

Experience

Consider getting a property lawyer who specializes in real estate law and has vast experience in the field. Look at the records of their past cases, the clients they have handled and the outcomes of those cases. Further, check their Linked In and company websites to get insight on who they are, and how long they have been dealing with real estate cases. This will help in ensuring that you are choosing someone with vast knowledge of what happens in the real estate industry and has experience in the services they are offering.

Knowledge of land laws and policies

In Kenya, we have laws and acts which regulate land ownership and other land-related issues. It is advisable to choose a lawyer who understands all these laws and policies and how they will affect you in future. This will also help you in making judgements that comply with local laws and standards.

Honesty and transparency

Honesty and communication create a good relationship between the client and the lawyer. A lawyer should provide you with all the information concerning your property and explain to you any matters that might be relevant to you. They should be clear about all the legal processes and provide you with extensive updates and should be willing to discuss everything with you and you should feel free to ask questions.

It is important that you select a reputable and honourable property lawyer. This guarantees that you resolve your real estate problems sensibly and cautiously. Always seek advice from real estate professionals who can guide you to a good and reputable lawyer.

4 Reasons Why Kenya is a Favorable Real Estate Investment Market

4 Reasons Why Kenya is a Favorable Real Estate Investment Market

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.

Photo businessman protecting paper cut out house with hand

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.

Infrastructure

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.

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