13 Rock-Solid Reasons why buying land is a great investment in Kenya
As real estate players, we already know how important land is as an investment avenue. When trying to convince a buyer, maybe you only highlight a few. Now let’s help you identify more reasons to give your customers.
Let’s go!
1.Your land is unique.
Plots of land come in different in sizes, location and shape. You can never find an identical piece to yours. It’s easy to attract a good price when selling because a willing buyer can never find the same exact land. If you are in the rental business, tenants can compare houses and prices as features could be identical.
2.Land is a Finite Resource
Elon Musk is trying to go to look for land in Mars, but in Kenya, no one is making any more land. There is only so much land that is available in Kenya and I do not think we are going to colonize another country and take their land. As a limited resource, land will always be in demand.
3.You You don’t need to be an expert.
You do not need to be an expert on any area to make returns on land. There are various ways in which you can make money after owning land. If you buy land and wait, then the land appreciates with no input needed from you.
You do not need to deal with any tenants not paying rent on time. Once you buy land, it sits there, it behaves itself like a good child and makes you money.
5 things to consider and think through before you buy
4.No maintenance costs.
The major difference between owning land and residential property is that land doesn’t need any maintenance or attention while properties require a lot of work and time.
Once you invest in Land, you do not need to maintain the land in any way. There are no electricity bills, no water bills to pay and property taxes are incredibly cheap. If you want to park your cash somewhere and forget about it, buying land is one of the best avenues you could rely on.
5.Land Gives you peace of mind.
Once you buy land, it becomes a long-term asset that doesn’t wear out and doesn’t depreciate. There is nothing in land that can get broken and needs fixing. Land cannot be destroyed, and you can sleep soundly knowing your investment is safe. No additional effort is needed from you. There’s nothing to protect, maintain, or renovate. The land just stays in its natural state and makes you money as you sleep.
6.Land is a Tangible Resource
We know there is people out there who can try con you out of your land. Other than these dubious characters, the land you own cannot vanish or disappear. With rising usage of digital currency, the world may decide that paper money is now useless. This risk makes country store their wealth in gold. However, land will always be something of value. Once you buy land, it will be of value irrespective of what the global economic situation is.
7. Land is affordable
Depending on the amount of money you have, chances are that there is a place you can buy land. We have plots on sale from as low as Ksh 100,000 for an acre in Kitui. You even get to pay this amount across 12 months!
Once you buy land, there are no additional costs, bills and payments needed. There are no roofs to be repaired, no drainage to be cleaned or internet costs to be paid. There is no insurance costs. Your land sits quietly in the background, costing you nothing while silently increasing in value.
8.Little or no government control
When purchasing and investing in land, there are no risky government legislations that you must know. Its not like investing in items like bonds or stocks and shares. For land in municipalities, you need to pay nominal amount of land rent. But for land not in urban areas, once you receive your title, there is no other government regulation you need to abide by.
Land Owners Guide to Land Rates and Land Rent Payment in Kenya
9.Land is Easy to Purchase
When purchasing land, you don’t need to go to school and learn how. Its easy buying land and the steps are easy to understand. Read more on the 6 steps to follow when buying land in Kenya.
10.Land Gives You Freedom
Buying land allows you numerous opportunities to use it to make money. You can hold the land and wait for it to appreciate. You can lease it out to others or hold it for a lifetime and leave it as part of inheritance. You can purchase land, save up some money and hold it for a decade, and then build your dream home.
11.Sense of Fulfillment.
Owning land comes with a sense of fulfillment, especially in our African tradition. It is more of a success to have a piece of land than other forms of acquired wealth.
12. You can use the title as Security for a loan
Once you buy a piece of land, you need to ensure that you get a title in your name. with this Title, you can walk into a bank and get a loan using the title deed as security. You can use the loan to carry out any other business and this time, the land keeps appreciating in value. You can even buy land in cash, take a loan using the title and use that loan to buy another piece of land.
13.You Can Pass Real Estate Down to Your Heirs
If you want to leave a legacy behind but don’t think going cash is a good idea, passing real estate down can be even better. Not only will you give your heirs an income-producing asset, but it’s also an appreciating asset. So they can either keep the property and let the legacy continue or sell it and earn profits.
Now that we have decided that land is a good investment, where can we find land to purchase? There are several listings websites in Kenya with a focus on buying and selling land. You may also contact a real estate agent who can help you find property and help you in the buying process. While not the best option, you can find properties for sale by driving within your target neighborhood and look out for plot for sale” signs.
Important: The Top 7 Real Estate Listing and Agency Sites in Kenya
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Review the following questions as you consider buying land in Kenya:
Where is the plot located? While location is not the only thing investors should evaluate, it is the most important. The location of a land determines the income potential. The land you have could be big in size and affordable, but if it’s in a remote area, it may not make have high growth potential.
How is the property zoned? A property zone essentially designates what you can use it for, like agricultural, industrial, commercial or residential space. Always make yourself aware of a property’s zone before investing to avoid the shock of any new regulations. You can read more on the various zones of Real Estate in Kenya. While zones are important, they can always be changed through application to local counties.
Do not miss: Ultimate guide to the process of change of user for land in Kenya
Are any utilities available? It’s important to consider availability of utilities like water, electricity and roads before making a purchase. These factors influence the overall cost of the land and the growth potential.
What is the history of the land? Do your due diligence. including a complete a title search. Pay special attention to how long the current owner has had the property. If they are trying to sell quickly after owning it, it could signal there is an issue with the property. Hiring a land surveyor to check out the accuracy of the property size.
The bottom line?
Land ownership is a great investment, as long as you enter the deal with awareness of all of the risks and pitfalls. By conducting careful research, investors can take advantage of the simplicity offered by land ownership and the potential returns.
