For the better part of the last two decades, the Kenyan real estate market has grown exponentially as indicated by its contribution to the country’s GDP which grew from 10.5% in 2000 to 12.6% in 2012 and 13.8% in 2016.
Previously, the real estate sector had witnessed stagnant growth in 2017 and 2018. In 2019, the real estate sector in Kenya recorded a growth rate of 5.3 percent, which is 1.2 percentage points higher than 4.1 percent growth rate recorded in 2018, according to KNBS Economic Survey 2020.
Here are some tips for those of you who would want a slice of the most lucrative cake.
Never pay full price
In hot markets like the one we find ourselves in now, it seems near-impossible to buy under market value. In reality, many developers will offer a massive saving in exchange for an early sale.
Invest using someone else’s money
The beauty of investing in property is you have leverage at your disposal.
Leverage is the principle by which you use debt, rather than fresh equity, to purchase an asset; in other words, the banks have you covered.
Find a trusted mentor with proven results
If you have a goal, the best step you can take towards achieving that goal is to find someone who has already, and who is willing and motivated to help you do the same. This applies to any goal in life.
Invest in suburbs where demand is high and supply is limited
To achieve financial freedom, it isn’t enough to simply invest in property. You must invest in properties with positive cashflow, in areas where demand is high and supply is limited. Is population growth high? Employment strong? The number of new homes, low?
Anything else, and what you are left with is an enormous loan and a rent that does not cover it; so long as new properties are being built, prices will stagnate.