How to buy real estate in Kenya

A home for sale.
Always be on the lookout for a undervalued property. PHOTO/FILE
There are several ways to make money with property by investing in the Kenyan real estate market.

Here are some of the proven methods.

1) Look for a undervalued property
Do your research, find out areas that are undervalued but have some redeeming quality such as proximity to amenities such as a good hospital, highway, shopping centre or some other desirable  places. Investigate why the area is going for so cheap.

It is a fact that some undervalued suburbs need just one property developer to come into them, buy land at a throw away price and then put up some houses.

This kind of activity will eventually attract other property investors or home buyers. Once buyers begin streaming into an area it becomes a more desirable place, which ultimately attracts an increase in property value.

Kitengela, Syokimau and Mlolongo areas, all of which are situated within easy access from Nairobi, are good examples of previously undervalued but currently more desirable areas.

2) Renovate a property
A house that is in bad shape is usually hard to sell since most property investors either do not have the time or desire to buy a rundown property. You can make some good money with property if you buy such a house (cheap of course) and then renovate it.

READ: Renovation ideas for small homes

3) Buy and hold for the long haul
This method refers to buying a property and holding onto it in the hope that its value will increase over a period of time, this is very likely considering that Kenya property prices have been increasing in recent years.

This type of investment requires you to focus on the time value for money. For example if you buy a Sh6m house today and the property appreciates at 20 per cent a year, after 5 years the same property will be worth more than Sh14.9m.

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