How do you find the best investment property in Kenya?

Investing in assets is very key for financial security. Finding a good investment property is, therefore, very important. Similarly, you don’t want to invest in a property that has a very low rate of return.  One of the best property investment deals in Kenya is a rental property. When thinking of buying rental property in Kenya, it is important to understand the risks associated with buying such a property. Rental property advisors have come up with the secrets that will help you find the best property and investment deals. Let’s explore some of these tips


Here are a few tips when investing in rental property in Kenya.

Okay, here is what you must know before you settle for an investment property in Kenya

Buying a rental property is a good investment choice, but it is not without The financial Risk involved. 

With no prior real estate investing expertise, there is a good probability that you may make costly errors. Deciding on the type of property you wish to purchase is the first step in purchasing a rental property. You can examine several property kinds, like apartments and villas, which can be more appropriate for your needs than other types like commercial buildings or industrial structures (which need more careful consideration).
If this sounds like something that might interest you then read on!

Take your time to research the property and its exact location.

Examine the area and decide if it fits the lifestyles of you and your family. Before signing any agreements with landlords or tenants who are interested in renting out their space to you, walk through the neighborhood, make note of any nearby attractions (such as restaurants or shops), and look up local schools, crime rates, and property tax laws at the county level.
When deciding on a location, consider the county, constituency, and even the exact local area.

Be aware of the real estate market prices for a particular area.

It is crucial to be aware of a specific area’s real estate market values. This will enable you to decide for yourself whether the investment property you want to purchase is worthwhile.
It is crucial to find out what specifically changed and how much the real estate market has altered from prior years if there have been any recent changes. If at all possible, speak with individuals who have previously made investments in comparable properties. They may provide sound advice and give some insight into whether or not their previous investments were successful enough for them.

It should go without saying that having access to information regarding these matters is crucial. It assists you to make an informed decision.

However, it is worthy to note that the cheapest doesn’t necessarily mean the best deal. Compare the price against the quality you have observed and other similar properties. Similarly, the most expensive doesn’t mean it is the most lavish property. A lot of factors go into the pricing of the property.

Inspect the house from top to bottom and from one side to another before you buy or rent.

Inspection is necessary to ascertain whether the property you are investing in is safe for occupation. You can either do this yourself, but it is recommended to engage the services of a professional inspector. You will get better and much more informed opinions from a professional who has extensive experience in property inspections.

The inspector should look for any cracks in the floors and walls. If there is any dampness, mold, or mildew, look for it in any bathrooms or kitchen, or other areas with high humidity levels. On wooden furniture, especially older furniture that previous owners neglected to treat correctly, look for signs of termites (or you).

Should you find any of these issues, consider whether they can be repaired at a manageable cost or whether it isn’t worth it to move ahead with the deal.

Check for any outstanding legal issues around the property.

It is important to play your part personally as the investor and do due diligence before proceeding to invest. You can only proceed to invest in a property if and only if it turns out there are no legal issues attached to the said property. Therefore, make sure there are no unresolved legal issues or liens that affect the ownership title.

Make sure you have copies of all documents relating to your investment property, including the following: the title deed, land registry, and titles certificate, the land use plan (if applicable), the building permit (if applicable), the building inspection report (if applicable), and the water and electricity meters.

Ask questions about any unusual things on the property.

Part of doing due diligence before investing in something is asking all questions related to the property and its surroundings. Asking questions will enable you to get all the necessary information to make an informed decision. Ask about any unusual things on the property, such as mold or pests.

This part also helps you not to have issues with the owner(s) after the deal has been sealed. The right time to ask the questions is when you are enquiring about the property and during the property inspection. Ask the questions alongside someone else who has better experience in such situations. 

By doing this you will be one step closer to going ahead with the deal or calling it off.

Find out if you can access public transport easily from the house you are interested in buying or renting.

It is always recommended to live as close to civilization as possible. Live close to highways, main roads, feeder roads, train stations, fuelling stations, or even a car service bay. Consider how easy it will be for you to access public transport. 

If you’re looking at homes in a city, this can entail taking the bus or train into town each day. If you choose one of the more isolated properties, there might be just one narrow road leading up to it, after which it would be off-road until it was back in a place where people might be found.

You must be able to move fast and easily around. You may need access both within and between cities.

Assess your overall budget and determine how much money you can spend on buying or renting an investment property.

The overall cost that will be involved in you owning the property and turning it into a perfect living space is really important. Thinking about how much money you can spend for buying or renting an investment property is important. However, including all the costs of buying or renting, including maintenance and improvements, repairs, and taxes.

In addition to these expenses, factor in utilities (water, electricity), property management fees, transfer fees, and other costs that may be associated with your purchase of an investment property. It is advisable to keep yourself within the limits of your set budget. Do not spend all your savings on just buying or renting. Beware of other involved costs.

Check out all the properties that are available within your budget.

Look at all the properties that are available within your budget. Don’t just look at the property, but also check out the neighborhood and schools if you can afford them. If you can’t afford one of these things and it ends up being out of your price range, don’t worry! 

There are lots of houses for sale in Nairobi or another area where there might be similar options at a lower price point. Keep yourself well within the confines of your budget.

Consider whether buying to sell or rent.

You should know what you are after. That way, you will reduce the number of properties you are considering. Once you identify your needs, target the property that only meets them. Doing this will help you choose whether to buy for sale or rent.

Choosing whether to rent or to buy also enables you to come up with a more informed budget. Renting will be much easier since it doesn’t involve a longer process such as signing multiple documents.
Renting is also much cheaper than buying the entire property. However, note that buying the property is a form of long-term investment, and you take full ownership of the property to do with it as you please. It involves things such as remodeling and building new structures.

Conclusion

Kenya is a hot cake for investment property. On that note, investment properties are listed daily. Some investment properties suit the needs of virtually anyone in terms of financial capability and taste. Look around, and do your research to find the ideal rental property. Be sure to do due diligence to tick all the right boxes before making that investment. 

Are you thinking of rental property Investments? See interesting listings here