Why Kenya Land for Sale should be your first priority compared to a car purchase
Whether to buy land or a car has been one of the most significant debates, especially among the millennials. Most of them struggle with choosing what should come first, especially when one can’t afford both of them at once. However, there is no direct answer to this, as it depends on your preference and how much you earn.
We understand the confusion that this question brings to many, and that’s why, in this article, we shall compare land and car investment. This will help you make an informed investment decision and avoid a financial crisis.
Appreciation and Resale
Land will always appreciate anywhere in Kenya. According to the real estate market in the country, land appreciates by at least 12 % every year. This means that whether you buy your land to develop it immediately or for future sale, you will get more returns. Also, in case you have no plans to develop it immediately, you can lease it out and enjoy an active income.
On the other hand, the case is different for a car. A car will lose its value by either 10-15% in a year. This means that in case you want to sell it later, it will be at a lower price than the one you bought it at.
Buying a car is the easy part, but maintaining it is hectic. Cars attract several maintenance costs because their longevity and health depend on how you treat them. Depending on the model, you may spend at least 5,000 a month to fix issues such as replacing car parts, unexpected repairs, and routine maintenance, not to mention the cost of fuel.
Land, on the other hand, has minimal or no maintenance cost. At times, you may not need to do anything on the land, and still, its value will go up. Besides, as mentioned earlier, you may lease the land and still earn from it.
A car is a depreciating asset, and therefore, its value decreases with time. Unless you use your car for car hire, selling goods, or taxi services, it remains a costly liability. Therefore, you may consider buying a plot instead of a car.
On the contrary, the value of land keeps on going up significantly as the population, infrastructure, and development grow. Additionally, there are many ways you can generate income via land, including hiring it out for garden events, farming, temporary stalls, or tree nursery growing.
Sometimes in life, one may require money, and the only thing to stand up for you is your investment. If you own a car, you can use its logbook to get a loan, but the amount may be lower, especially if it has depreciated.
The case is, however, different when using land as collateral. You stand a chance of getting a higher amount of money because land always appreciates.
No investment doesn’t have its risks, only that the intensity differs. However, owning a car attracts higher risks such as theft, breakdown, accidents, and much more. If it is your first investment and you encounter any of these issues, you may be demoralized.
Compared to a car investment, land investment has almost zero risks. Once your name appears on the title, you become the legal owner with no chance of losing your piece of land whatsoever.
In conclusion, consider an investment that will generate an income. If you buy a car to use for business, it’s okay. However, investing in land would be better because it attracts meager maintenance costs and risks. Additionally, You can use it as collateral to get a higher amount of money for more investments.
If you decide to invest in land, there are many real estate companies that you can consider. However, not all of them are genuine. At Denver Group Limited, we have all plot sizes that would fit your budget. Our plots have ready title deeds and are in developed areas along Kangundo Road. They are also ideal for residential or commercial purposes, so make an effort and visit our offices for more information.