Challenges Facing Real Estate Industry that Kenyans Face
Why information in Real Estate is important before investing in Properties in Nairobi.
If you are a novice investor in real estate, you might make some mistakes. Real estate is undeniably a lucrative venture that has welcomed millions of Kenya. The reason why almost everyone wants to invest in real estate is that land doesn’t depreciate. Its price only keeps on rising, thus guaranteeing to make some profit. Nevertheless, this investment has its package of challenges, and most investors make some mistakes. Let’s look at the challenges facing real estate industry that Kenyans encounter or go wrong when investing in real estate.
Challenges Facing Real Estate Industry in Kenya that its Citizen Face
1. High Expectations
This is one of the mistakes that Kenyans make when getting into real estate. The thought of how a cheap plot will make you a millionaire in a few months is deceiving. Even though you have a guarantee of making some profit, the case is not always the same. One, therefore, has to be patient and give the land time to appreciate.
2. Lack of Enough Research
This is another area where most investors go wrong in real estate. There are many deals in the industry, but not all of them are good. It is said cheap is expensive, and if you are not careful, you will pay more for less, and reversing such a case won’t be easy. This is more so if the paperwork and payments have been done. Nevertheless, you can be safe by doing proper research. This will help you know more about the company you intend to buy from. Be careful to know where the land is located and research the land registry to establish the real owner of the land. You don’t want to purchase land that has already been sold to another person.
3. Cost Underestimation
Buying land comes with many extra costs apart from the buying price this is one of the challenges facing real estate industry. This is why you should not only look at the price the seller wants because there is more to it. Some of the costs related to land buying include tax, land transfers, and survey fees, among others. If it’s a property you are developing, there are costs like construction licenses, and if you ignore such, you might spend more than what you had budged for. One of the things that make Kenyans be conned is that the process of paperwork in real estate is tiresome, and they don’t want to get tired. As a result, they involve people who are not honest and end up being duped.
4. Lack of Local Information
Real estate is local, and you need to be informed about the local market. This means you must dig deep to get information about home values, inventory levels, and the rate of development in the area. Considering these factors will help you decide whether to buy or not. Real estate investors can avoid the above mistakes in Kenya. The best way to be safe is by working with a trusted real estate Company whose commitment is to give the best like Denver Group Limited.
