According to CNN, property values in Kenya grew by 25% in 2011, outpacing luxury hotspots like London, Miami and Hong Kong. Kenya is known as the cradle of humanity and has a vibrant tourism industry and a wide variety of natural resources. Unfortunately, most of the world only knows him for marathon racing, the Maasai, and conflict. Kenya is much, much more than that! And if you are an investor, very, very few countries beat the returns you can get in Kenya today.
As with all other markets, focus is one of the key areas for success. High achievers in any field are more focused on their goal and details. In real estate investing, there are three key areas of focus that you should be aware of.
1. What to buy
This is one of the first considerations: what have you decided to buy? What are the facilities you expect with the property? How big should it be? Whether you want to buy to rent or resell? And of course, a very important point is its location. In any case, you will not be ready to commit to these basic requirements. This forms your basic strategy. Your basic considerations and listing them on a piece of paper keep you focused. This precision homework is what keeps you away from unwanted properties.
2. Terms of the offer (How to buy)
The considerations help you narrow down your options, but the terms of the deal will decide your chances of future earnings and cash flows. All successful investors agree that a skillful negotiation with the seller about cost, down payment and interest rate will decide their future earnings on the property. You have to do all the calculations with precision and deep understanding, comparing two or several properties with all the pros and cons attached to each property. This does not mean that you have to be a great negotiator. What is required is that you know the fundamental financial aspects of the transaction, to which you will be delivered. The terms of the deal, put another way, are the conditions and price at which you are ready to do business. If a property doesn’t match your terms, walk away. And decide the terms of your deal in advance, not when you see a property and get excited about it. The terms of the agreement help you take emotion out of the equation. The terms of the deal will decide what is at stake and what value you are getting. It is an important process to maximize your financial gain and future cash flow.
3.Support system network
Last but certainly not least is the network of your support system. Their support system helps you in your investment. It occupies a high place in the minds of savvy Kenyan real estate investors. Their support system consists of a myriad of people who serve as mentors or advise them on opportunities or help them in many ways to complete their investment task smoothly and successfully. Members of the support system are much loved by Kenyan real estate investors and enjoy a close relationship with them. In a way, the support system gives them a great advantage as they can get a lot of work done through them in less time and effort. All successful people take help and support from those who are experts in the given field. Successful real estate investors do not hesitate to receive the support of all those who willingly give them help. You also need the help and support of your friends and acquaintances, real estate agents, property managers or contractors. All of these people will help you reach great heights in real estate investing, once you learn their importance and more than that, the art of how to harness these resources to your advantage.
Investing in property in Kenya is a very lucrative endeavor, with returns of over 25% or even much more per year. Do not be afraid; instead, learn more, be educated and smart about it, and you’ll find it far less risky than investing in Europe or the US.