6 Reasons why Land, or Property in Nairobi Kenya is preferred to Rentals in Nairobi
The question of whether to own land, or rental properties remains a hard nut to crack for many investors. Most Kenyan investors are shifting their focus in property ownership with most of them preferring to invest in housing than land. This is due to the rising demand for housing. But should you invest in land, or rental properties?
Keep reading this article as we find the answers.
As at 2015, land has greatly become a lucrative option for real estate investors. Mostly, Kenyans prefer buying land because they aren’t required to do much after purchasing. Once you buy land, all you need to do is wait for its price to appreciate and sell.
There are many reasons why buying land is more lucrative than rental property for sale in Nairobi. Let’s look into the reasons.
1. Peace of Mind
Land is a long term and tangible asset with no depreciation or wearing out. Therefore, as an investor, you won’t have to worry about your asset being stolen, broken or destroyed. You don’t need any additional effort to keep the land. Worrying about renovation, protection or maintenance won’t happen to you. Land in its natural state keeps appreciating without taking your peace of mind.
2. Land Investors Deal with Less Competition
The real estate industry in Kenya is currently very competitive. This is more so in rental properties where you might have to deal to with a lot of competition especially in bidding. On the contrary you will have almost zero competition once you invest in raw land, Most Kenyans investors are fixed on apartments, and houses. You can play with this reality to your advantage by investing in land.
3. Buying Land is a “Hands off” Investment
Have you ever experienced the pressure that comes with dealing with tenants. How about repairing broken furnaces and leaking roofs? These are some of the issues that rental property owners have to deal with.
On the other hand, vacant land doesn’t tag along any of these. Once you buy land, it sits there without anything happening to it or stressing you up.
4. You Can Buy Land Virtually
Times have changed and technology has made things easier for people. You can now buy land virtually within very little time. Investors can have all the land purchasing processes done virtually thanks to the tools made available by technology.
The beauty of vacant land as opposed to rental properties is that you can inspect it easily. Therefore, you don’t have to be on location to buy land anywhere in the country.
Landowners in Kenya are not limited from utilizing land according to their needs. You can use it for farming or lease it out to someone as you wait for it to appreciate. The best part about this is that your land’s value increases without you losing its ownership.
On the contrary, rental properties limit investors greatly. They can only be used for rentals not to mention the stress that comes with dealing with tenants.
6. Minimum Property Tax.
There are many benefits that landowners in Kenya can profit from as opposed to rental property owners. When you own land, you stand to enjoy tax deductions and credits thus reducing its tax liability.
Additionally, you will not be required to pay income tax no matter how high you sell your land. However, the case is different for rental properties. The only tax that landowners are required to pay is property tax which is substantially lower in Kenya.
No matter the strategy you want to use when investing in real estate, land ownership is better than rental properties. You will have your land for as long as you wish and still be excluded from the costs that come with rental properties. Additionally, you will not have to worry about theft or related incidences.
Land ownership also comes with less competition and you won’t have to break the bank to pay your land rates. Besides, you can use the land the way you want and make extra money as it appreciates. In conclusion, buying raw land is better than rental properties. The demand for land is increasing daily in Kenya hence you will not only add to your assets but you will enjoy a higher return value later on.
Have you been wondering how to invest in real estate? I hope this article helps you make an informed decision as far as land and rental properties are con