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5 key things to know before buying a plot

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Land gains value with time, unlike many assets that are always depreciating, which explains the ever-increasing demand for land investments.

As a first-time real estate investor, buying land can feel like a horrifying process. Yet this should be a joyful process given that by so doing, you get to own a share of the earth and make a bold step towards investing in real estate.

To make a fulfilling land investment, you will need to consider the following five things.

1. Location

To reap big in real estate investment you need to get the location right. Regardless of what you seek to do with the land, its location is the most important thing to consider first. If you were looking to purchase land to build a residential house, you will need to consider how far the land is to your place of work or to a major town such as Nairobi CBD.

You will also need to consider how accessible the land is from different locations using different means of transportation. Currently, towns such as Ruai, Joska, Kamulu, and Malaa are among those strategically located for investors working within Nairobi.

At relatively affordable prices, you can secure land in an area that promises huge returns and serenity. Photo / Fanaka.

2. Available infrastructure

As a land buyer, you need to ask yourself what infrastructure service the land you look to buy. This goes for whether you are looking to build your home, buy and sell or set up a commercial enterprise.

Availability of good roads, electricity, and water often contributes a lot to the growth and development of an area. For those seeking to buy and sell, this plays a big part in the appreciation of the land’s value.

The next thing you will need to consider is the availability of different amenities. Human beings are social beings and as such, we like to belong. If you were looking to purchases a residential property, you will be scouting for a place closer to social amenities such good schools for your kids, nice hospitals for your family, and your preferred place of worship.

3. Affordability

Your purchasing power is the other important thing when buying land. Purchasing a residential or commercial property is a long-term investment, for that reason, you need to get the value for your money.

What this means is that you should be able to pay for the land without putting too much pressure on your finances. As a buyer, you need to go for a seller offering competitive prices and flexible payment terms.

Companies such as Fanaka Real Estate, offer cash buyers a 4% discount on all their projectsand those who want to pay in installments can do so in 6 months. Some of their projects include Kamulu Gardens, Palm Gardens, and Plains View Gardens.

Those with residential homes in Kamulu can access the Nairobi CBD using Mombasa Road, Thika Road, or Jogoo Road using both private and public means of transportation.

4. Ownership history  

Land is a sensitive issue in Kenya. There continue to be cases of people being duped in land dealings for not having done proper due diligence. Before committing to pay for a parcel of land, you will need to identify the rightful owner. You can do this through a land search done at the Land ministry of the County where the land is located.

Read Also: The two surest ways to owning your dream house

A land search will help identify the history of ownership of the land and whether or not it has any claim on it for example in cases where it is used as collateral for a bank loan. In cases where the vendor has subdivided a large chunk into small plots of say 50*100 or 40*80, you should ask for the title deed of the individual plot and not the whole chunk as a block.

Before you commit your investment on land make sure you do due diligence or buy through a reputable company. Photo / Fanaka

5. Who is selling the property 

Finally, it is very important to consider who you are buying the land from. We recommend purchasing land from a registered real estate company for the following reasons:

  • Most companies will service the land by providing roads, electricity, and water.
  • It is easy to do your due diligence on a company than it is on an individual
  • You get a variety when buying from a company.
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KANYIRI DUNCANhttp://www.businesstoday.co.ke
Kanyiri Duncan Digital Marketer at FANAKA Real Estate. He can be reached on email at: [email protected]
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