Is It Possible to Buy Land Kenya Without Money

Is It Possible to Buy Land Kenya Without Money

5 Alternative you can consider when buying property in Kenya

Due to the high land cost, achieving your dream of becoming a landowner in Kenya may be challenging. Land is costly, especially in the areas that are developing quite fast. Nevertheless, considering the land’s appreciation rate, a piece of land can be a great long/short-term source of income.

Among your options is leasing or reselling the land once its value increases. But the big question is, can one buy a piece of land in Kenya without money? Keep reading as we discuss alternatives you can consider if you desire to own land but have little or no money.

1. Take a loan.

Obtaining a loan from your financial institution is one option for owning land when you are moneyless. You can also borrow from friends or family members. If you decide to take a loan, the bank will first evaluate the piece of land and pay the amount required.

However, the land will be the collateral. The land’s title can be in the bank’s name or the bank’s and yours. Once you clear the loan, the title will be transferred to you.

Taking a loan is an easy way of owning a piece of land when you don’t have the finances. However, ensure you search for lenders whose interest rates are low.

2. Unite with Other Willing Buyers

Unity is strength and works wonders. If you have a team of friends interested in becoming land owners, but they have less or no money, you can team up with them. After that, you can agree with the land seller on how to pay for the land. The agreement can be on a monthly, quarterly, or yearly payment plan. Luckily, most landowners or real estate companies are open to this idea.

This option is advantageous because even if the land is large, you will get it at a lesser cost compared to when each team member buys the land individually. Additionally, the effects of downpayment and interest rates will be greatly reduced for everyone who contributes.

3. Lease the Land to Own It

Although uncommon, this is another easy way of owning a piece of land in Kenya without money. You can agree with the land seller to permit you to lease the land you are interested in for some time.

The money from the lease will go to your seller until you completely settle the agreed sale price. There are land sellers in Kenya willing to lease their lands to potential buyers if they lack a one-off payment buyer. This arrangement can be beneficial to both parties.

4. Bear the Mortgage of Your Land Seller

Sometimes, landowners are caught up in debts, which may be a perfect opportunity for you to own land. For instance, if your prospective land seller is servicing a loan for the land you are interested in, and it’s taking a toll on them, you can agree to continue servicing their loan. This will allow you to assume the land ownership.

However, this agreement will only favor you if the interest rate is low or fixed. Remember first to find out if the loan is assumable and that the seller is clearly in the picture because not all loans are assumable.

Assuming your land seller’s loan helps you avoid the cost and stress of a new loan.

5. Pick a reliable Real Estate Company

Most real estate companies in Kenya offer favorable payment plans to their buyers. The payment plans accommodate buyers based on their income levels and are graciously spread so as not to stretch the buyer’s income.

When you buy land from a real estate company, you are more advantaged because you won’t bear the burden of high-interest rates from the bank loan or the agent fee. Additionally, you assume full ownership of your land once you complete the agreed payment plan.

The above are possible ways to buy land in Kenya with less or no money. However, you should first do a detailed search about the land you intend to own. Find out if the conditions are friendly and if the owners permit you to buy their properties through the above options.

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