According to CNN, property values in Kenya grew up by 25% in 2011, leaving luxury hotspots such as London, Miami and Hong Kong behind. Kenya is known as the cradle of mankind and has a vibrant tourism industry and a vast array of natural resources. Unfortunately, most of the world only knows it for marathon runs, Maasai and conflict. Kenya is much, much more than that! And if you are an investor, very, very few countries beat the returns you can get in Kenya nowadays.
Like with all other markets, focus is one of the key areas for success. The great achievers in any field are most focused to their goal and details. In property investing, there are three key areas of focus that you need to be aware of.
1. What To Buy
This is one of the first considerations- what have you decide to buy? What are the facilities you look forward with the property? How big it should be? Whether you want to buy for rental or resale? And of course, very important point is its location. In any case, you will not be ready to compromise with these basic requirements. This forms your basic strategy. Your basic considerations and listing out them in a piece of paper keep you focused. This home work with precision is what keeps you away from unwanted properties.
2. Deal terms (How To Buy)
Considerations help you filter and narrow your choices but deal terms will decide your earning possibilities and future cash flows. All successful investors agree that skillful negotiation done with the seller on cost, down payment, interest rate will decide your future gains on the property. You have to make all calculations with accuracy and thorough understanding, comparing two or several properties with all pros and cons attached to each property. This does not mean that you need to be a great negotiator. What is required is that you know the financial fundamentals of the transaction, which you are going to indulge into. Deal terms, put in another way, are the conditions and price that you are ready to do business on. If a property does not match your terms, walk away. And decide your deal terms before hand, not when you see a property and are emotional about it. Deal terms help you take emotion out of the equation. Deal terms will decide what is at stake and what value you are deriving. It is an important process for you to maximize your financial gain and future cash flow.
3. Support System Network
The last one but certainly not the least is your support system network. Your support system helps you in your investing. It occupies a big place in the mind of smart Kenya property investors. Their support system consists of myriad of peoples who either play a role of mentor or inform about the opportunities or help them in so many ways to finish their task of investment smoothly and successfully. Support system members are very dear to Kenya property investors and they enjoy a close relationships with them. In a way, support system provides a huge leverage to them for they can accomplish many works through them in lesser time and efforts. All successful people take help and support from those who are experts in the given field. Successful real estate investors do not hesitate to take support from all those who willingly lend helping hand to them. You too need to take help and support from your friends and acquaintances, from real estate agents, property managers or contractors. All these people will help you reach great heights in real estate investment, once you learn their importance and more than that the art how to harness these resources to your benefit.
Investing in property in Kenya is a highly lucrative endeavor, with returns of over 25% or even much more annually. Don’t be afraid – instead, learn more, get educated, and become smart about it, and you will find it a lot less risky than investing in Europe or the U.S.