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.
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 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.
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 aTangible 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.
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.
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
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
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.
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
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.