5 Challenges That Hinder Kenyan Diaspora from Investing at Home

5 Challenges That Hinder Kenyan Diaspora from Investing at Home

Obstacles for Kenyan Diaspora Property Investors when Purchasing Land in Nairobi

Real estate is one of the most expansive markets globally, where wise investors enjoy high returns, tax discounts, and a juicy cash flow. While the sector offers so many investment benefits, millions of Kenyans in the diaspora are still facing uncountable challenges regarding investing at home.

Diaspora remittances are very high thanks to the Kenyans who send money back home often. Sadly, most of that money doesn’t go to investment because of fear of the unknown. This fear has made many Kenyans in the Diaspora shy away from tangible investments.

So, what are these challenges? Keep scrolling as we discuss them in detail.

1.    Difficulty in Finding the Right Property

Finding and investing in the right property is one of the key factors behind the growth of wealth in real estate. This entails various factors, including zoning issues, your investment goals, identifying areas with high potential growth, condition of the property, to mention a few.

For Kenyans outside the country, these factors are an uphill task; that is how some of them are forced to rely on friends or relatives. For many, that path turns out to be full of disappointments.

2.    Validation of the Property’s Ownership

In real estate, verifying a property’s ownership must always come first. The only reliable document you can use to verify a property is the title deed. Considering that the Ministry of Land is yet to streamline its digital operations, Kenyans in the diaspora find it hard to verify since most land registry records are manual.

This further leads them to rely on people back at home for verification whenever they want to invest in real estate.

3.    Inability to Negotiate for Good Prices

Real estate investment requires a lot of negotiation because many agents take advantage of investors. Luckily, there is always room for negotiation. You can also evaluate the property and know how much you should pay. However, these are not things one can do while outside the country.

This makes it difficult for Diasporas to get affordable and prime plots in Kenya with title deeds.

4. Inadequate Information Due to the Ever-Changing Real Estate Dynamics

The demand, supply, and new trends in real estate cause the sector’s dynamics to keep changing. This makes it difficult for anyone outside the country to access sufficient information when investing in real estate.

5. Unreliable Real Estate Companies

Thousands of Kenyans in the diaspora have been frauded and conned by fake real estate companies. We have seen such cases happen often in our country; therefore, we can’t turn a blind eye to the fact that not all real estate companies are genuine.

Lack of someone to trust in your investment journey can make you pull back, especially if you have ever been duped. However, we still have genuine real estate companies in Kenya that will make your investment dream a reality. Nevertheless, you must do due diligence online and ask for reviews to know the best company to use.

The above are some of the most common challenges Kenyans abroad face when investing in real estate. This forces most of them to rely on friends and relatives, an engagement that could be risky.

However, that shouldn’t kill your investment goals. You just need to be careful and not settle on an investment deal you are not entirely convinced about. It is said that human instincts hardly lie; therefore, you should not ignore that inner voice. Don’t hesitate to ask questions and request a virtual tour of the property to be sure of what you are buying.

Secondly, you can own properties in Diaspora by engaging a licensed real estate company. Also, ensure you engage professional valuers and lawyers in the whole process. This will come in handy in helping you avoid most of the investment challenges we have discussed herein.

This article will help overcome your investment fears, especially if you are abroad. The real estate sector is full of good returns, so make up your mind and start owning properties.

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