Kenya Property for Sale is faced with diverse challenges they are highlighted below
Most young people have a zeal to invest, especially after landing their first job. Real estate is one of the most sought-after investment areas because it assures a growth record. However, investing in real estate is difficult as it attracts several challenges. Are you a young investor? This blog will discuss the challenges that pop up in the sector that you should anticipate.
Let’s get started.
1. Sustained Inflation and Tight Labor Markets
Since COVID-19 struck the world, the inflation rate in Kenya has been going up consistently. This sponsored a sharp increase in prices in the supply chain and the labor market, making real estate investment expensive. Although the sector has a history of performing well during times of inflation, the challenge significantly falls on investors identifying the right real estate company to shield them from inflation’s pungs.
2. Lifestyle and work Changes
The current economic difficulties are affecting most young investors by forcing them to change how they live and work. The main challenge has been assessing how long the changes can be sustained and to what extent. Such assessments are made gradually, focusing on different areas of the real estate sector. For example, those who want to invest in construction will need enough time to decide on a location where the land and cost of materials are cheap.
3. New Technology
Times have changed, and technology has dramatically changed the real estate sector. This has greatly empowered investors to improve in all areas of real estate, including design, construction, climate assessment, property, and financial management. For instance, you can use techs such as Artificial Intelligence and data analysis to predict the value of properties, identify new investment opportunities, and know when to increase rent.
However, many young real investors haven’t been able to stay ahead of this technological curve. This hinders many from being competitive and achieving their investment goals efficiently. Real estate investors need to embrace technology and shine in their investment journey.
4. Lack of Capital
Real estate investment is costly, hindering many young real estate investors in Kenya from exploiting the opportunities in the sector. The cost of living has gone very high, thus, causing a strain on many people’s income. This has led to financial limitations forcing many to withhold their investment dreams, hoping for a better tomorrow.
However, it’s said that where there is a will, there is always a way. You can use creative ways such as saving diligently, going for crowdfunding platforms, or borrowing from friends and family. Once you get something to invest with, there is an assurance of future stability since all real estate investments keep appreciating.
5. Lack of Market Knowledge
This is one of Kenya’s biggest and most common challenges facing young real estate investors. This sector requires much knowledge and experience, mainly achievable through real estate education. As a young investor, you must be ready to attend seminars, read books, and join local investor associations to network with experienced investors.
6. Risk Management
Real estate investment is risky; therefore, as a young investor, you must know how to mitigate the risks involved. This can only be done by doing thorough diligence, including assessing amenities, property inspections, and proper title land searches. Young investors should work closely with trusted professionals such as lawyers, accountants, and real estate agents.
7. Lack of Trusted People to Walk with
Real estate investment is vast hence the need for someone to walk with you, especially when closing a deal. Unfortunately, few people are willing to help and offer advice in this sector in Kenya. Many people have been duped when sealing their real estate deals, and that’s a challenge for young investors.
These are the main challenges young real estate investors face when pursuing their investment dreams. However, there is always a way to overcome each challenge, provided you know what you want to achieve. Real estate has so much potential; one can gain much when determined.