Over the last one and a half decade, buying and selling of land has experienced an exponential boom in Kenya.It has become the most sure bet for making wealth as urban centers grow and the demand for housing increases.Some of the advantages of investing in land include:
- Land is a ‘hands off’ investment and requires minimal attention or supervision. The most an investor can do to it is fence as evidence of ownership and pay land rates where applicable. It is also easy to grow the value of land by connecting water, electricity and constructing roads.
- Land is a long term tangible asset that does not wear out. Land appreciates in value over time and therefore likely to give more return in the long run.
- For some people buying land can be attractive; it is the chance to make an investment, especially in an upcoming area. If you want to build a commercial property or house from scratch owning the land yourself can be useful. Some people purchase land because they see it as a safer investment than property. Being an important form of investment, there are several factors to consider when making the investment decision.
Factors to consider before buying landBackground Check
Never make a blind transaction when it comes to buying property. It is your number one duty to confirm the authenticity of any property that you intend to buy. If you’re buying land, employ the services of professionals to help you conduct a land search.This will help to ascertain that the person sell ing the piece of land is the real owner and that it’s free of encumbrance. You will also need to do a thorough background check on the land to avoid fraudsters and conmen.Visit the site of the land for sale to ascertain its existence as well as confirm it’s the same size you’re buying.
Location: This plays a big role in determining the value attached to a property. Property that is close to the main road and developing areas will cost more than that further in. For instance, buying land at Naivasha would be a really good idea since the second phase of SGR is under construction.This means that if you have an intention of buy-to-sell, you will be able to sell it at a high profit since the value of the land is likely to appreciate faster.You may also want to consider the possibility of flooding in low lying areas as opposed to those in the raised ground for example; Mandera County is a flood prone area compared to Kiambu County.
Developmental Outlook: The purpose of buying land will determine the property you should buy. Whether it’s for commercial or residential, you need to have a well laid out plan. For commercial property, you’re better off buying at a prime area that is close to social amenities such as water, electricity, drainage system, good infrastructure, hospitals, supermarkets, churches, schools, and business. A residential house, on the other hand, may need a quiet place but not too far from major facilities.