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Buying Land in Kenya? Here Are 5 Things to Consider
Land is a finite resource; this makes land ownership a great form of investment. The process of owning land can be daunting. However, once acquired, the returns are great, especially if you buy land in an area that is expected to experience expanding demand in years ahead.
Here are the 5 things to consider and think through before you buy:
- Have a clear investment goal
You need to be clear on the reason for buying a piece of land. This clarity helps to guide your decisions.
If your goal is to accumulate assets, look for land in areas that you may want to settle in someday.
If your goal is to grow your savings, look for land that is not on the beaten path. Meaning, don’t get land that is not in a well-planned area.
If your goal is to have passive income, look for land in a place that is populated, where there is a need for rental units, either residential or commercial. Building rentals will also give you a quicker return on your investment.
Besides that, you need to ensure that the property have freehold title deeds. This will primary guarantee the safety of your investment as you can sell or lease out your land whenever you want.
- Decide how much you want to spend
It is critical to determine how much you want to invest because it determines where you can buy. For example, buying a piece of land within Nairobi will cost you more per acre than buying land in a non-metropolitan area. Buying land also means tying up cash for a significant amount of time. The land is not an asset you can liquidate on short notice. Therefore, consider getting a piece of land that will not put too much pressure on your finances.
- Would you like utility services in place?
Depending on your end goal, the land you buy may need to have utilities already installed. The most basic are water, sewer, and electricity. Utilities play an important role in an area’s development as well as the land’s value appreciation.
If you looking for such properties then land projects in Nakuru could be ideal for you as they have all-important amenities on site.
- Be clear on the duration of your ownership
Think about how long you want to hold the land. If your goal is to grow your savings, it is important to buy in an area that will be attractive to buyers in the future when you plan to exit. For example, when you buy a piece of land that is near a proposed development, you are likely to get higher returns and a quicker exit.
- Make a plan to do a physical site visit
You must see any piece of land you intend to buy. This enables you to get familiar with the place and your potential neighbours. A site visit assures you that you are buying land that exists. Many people lose their money by paying for non-existent land. Site visits are an important part of the land buying process.
In conclusion, when buying a piece of land in Kenya there are some very important considerations that need to take in order to ensure that their property is secure.