According to CNN, property values in Kenya grew 25% in 2011, leaving luxury places like London, Miami and Hong Kong behind. Kenya is known as the cradle of humanity and has a vibrant tourism industry and a wide range of natural resources. Unfortunately, most of the world knows him only from marathons, Maasai, and conflict. Kenya is much, much more than that! And if you are an investor, very, very few countries exceed 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 facilities do you expect with the property? How big should it be? Do you want to buy to rent or resell? And of course, a very important point is its location. In any case, you won’t 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 precise home work is what keeps you away from unwanted property.
2. Conditions of the offer (how to buy)
The considerations help you filter and narrow your options, but the terms of the deal will decide your chances of future income and cash flows. All successful investors agree that skillful negotiation with the seller about cost, down payment, and interest rate will decide your future earnings on the property. You must perform all calculations with precision and deep understanding, comparing two or more properties with all the pros and cons of each property. This does not mean that you have to be a great negotiator. What is required is that you know the financial fundamentals of the transaction, which you are going to allow. The terms of the deal, in other words, are the conditions and the 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 deal help you take emotion out of the equation. The terms of the deal will decide what’s at stake and what value you’re getting. It is an important process to maximize your financial earnings and future cash flow.
3. Support system network
Last, but certainly not least, is your support system network. Your support system helps you invest. It occupies an important place in the minds of savvy Kenyan real estate investors. Their support system consists of a myriad of people who serve as mentors or inform about opportunities or help them in many ways to finish their investment task smoothly and successfully. Members of the support system are highly 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 do a lot of work through them in less time and effort. All successful people receive help and support from those who are experts in the given field. Successful real estate investors do not hesitate to have the support of all those who willingly lend them a hand. You also need the help and support of your friends and acquaintances, from real estate agents, property managers or contractors. All of these folks will help you reach great heights in real estate investing, once you learn its 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 more than 25% or even much more annually. Do not be afraid; Instead, learn more, educate yourself, and be smart about it, and you’ll find it far less risky than investing in Europe or the US.
