Real estate investing involves the purchase, ownership, management, rental and/or sale of real estate for profit. One of the best ways to invest your money is to buy a property either commercial or residential for rentals. Unlike investing in bank property in other countries, there is a lot of profit to be made in Kenyan real estate market.
Real estate investment can diversify your holdings beyond stocks and bonds. While stories of quick flips buying a home, renovating it, and reselling at a much higher price dominate TV reality shows, renting is the true core of real estate investing. That’s because historically there has been very little real price appreciation in houses in Kenya. Renting generates a steady monthly paycheck, like a classic dividend-paying utility stock. Any price appreciation is a bonus.
But investing in a rental home isn’t like buying a low-cost index fund. Choosing the right property, maintaining it, dealing with tenants—all that takes work. Think hard about whether you’re prepared to put in the time. Can you handle after-hours calls? What if your tenant doesn’t pay rent? Even though home prices have bounced back, deals can be found—if you’re careful. Underestimating the costs of renovation and ongoing maintenance, the biggest rookie mistake, can quickly tank your returns. Before you take the plunge, do your homework. Real estate websites such as dunhillconsulting offers a helpful (and free) guide for first-timers.
Are you looking for a property to invest in Nairobi both for sale or rental? Those already walking the streets of Nairobi looking for an apartment know that it is not easy to find one. That is why you need to take your time and use the best Nairobi property agents.
Spend some time thinking about the kind of apartment you’re looking for. This will help you narrow down your options and enable you to determine some ‘must haves’ in your apartment choices.
Real estate investment is one of the ways to increase your wealth because land is an asset that will always appreciate in value. Is it by simply purchasing the first cheap land that comes your way.