Vacant land investment: Real estate in Kisumu

Until now land has remained the biggest real estate investment. It is an investment product that does not stale in any way. Many people who have explored this investment option have no business stocking their money in the bank where it doesn’t earn any meaningful dividend. I have over the years met smart investors to whom I have learned a lot when it comes to vacant land investment. And just to open your eyes, in late 1990’s one of these investors bought land along the flood areas of Kano plains on the busy Kisumu Nairobi highway. By that time no one ever wanted to look at that area as a place for investment. And as it is the norm, when he was buying many parcels of land along that area, people rebuked and mocked him as one with shallow business ideas. He did not mind the insult and continued with his business idea of buying vacant land in the economically wrong places according to the views of many.

To cut the long story short, those land he bought in 1999 at less than 10,000 an acre are today 18 years down the line of investment are fetching over 2.5milion an acre. Does that raise your eyebrows? I thought you were among the group of advisers who wanted him to look elsewhere for investment then! What point am I passing across, real estate in Kisumu is full of surprises for the good of those who have mastered the real estate business. There is money in the vacant land investment. All you need to do is to remain focus and never be swayed by onlookers. If this investor in 1999 bought 20 acres of land at only Kshs. 10,000 each (Kshs. 200,000 then) and today he is disposing the same at Kshs. 2.5milion, his gross income will be Kshs. 50milion. That is Kshs. 231,000 every month in the last 18 years. And just for the avoidance of doubt, the capital was Kshs. 200,000. Was that a bad investment idea as was lauded by many then?

I believe that by now if you have been following keenly the tone of this article, you probably want to ask certain questions. If you are you are indeed justified and we are always available to help you change the course of history. Realestate in Kisumu is an avenue for prosperity in the region. And it is never too late to start today. The best way to start is by acquiring parcels of vacant land and just like you could put some of your excess money in a fixed deposit account and earn just a meager 1.5% of your investment annually, you can be smart and torn to vacant land investment for real productivity in real estate business Kisumu chapter. The wait and see categories of investors will always be there to tell your story, but you must not be the one to tell other people’s stories of success. Be the one to whom successful investment stories are told. How do you make that happen? Talk to the professionals at West Kenya RealEstate today.

All you should know before Buying Commercial Kisumu Real Estate.

Buying or renting commercial Kisumu real estate, such is the question many business people ask themselves around the 1st of the month, when comes the time to write their rent's check.

With the interests rates being what they are and prices being affected by the commercial paper crisis, the answer might very well be yes if the right property becomes available and you can afford a relatively important cash down.

Owning commercial property in Kisumu real estate does have its advantages.

Choices:  as the owner, you can decide whether to select a building that matches your current needs, has enough room for future expansion or maybe is large enough for you to lease parts of it.

Equity: every month, your payments are applied to paying down your mortgage and building some equity which could be useful eventually to secure a loan for new equipment, to finance an acquisition or simply as an asset.

Appreciation: not withstanding any unforeseen occurrences, your building should appreciate with time.  This appreciation could,   just as the above mentioned equity, be used to get better financing conditions.

Power:  as the landlord, you are the person in charge of deciding how to finance the building, picking the tenants, choosing the decorations, selecting entrepreneurs for the work to be done, improving the building.  You even have control over your rent's rate.

                                                      

If it's so great, why doesn't everyone do it?

The main reason why not everyone owns the commercial space they're using is that, in real life, thing don't necessarily go exactly as in late night's infomercials…

You can buy commercial real estate with no money down, especially if it's because your money is bringing you more in another (safe) investment. 

On the other hand, if it's because your cash flow doesn't allow you any flexibility and that you don't have anything aside should things go a little unexpectedly, then you may want to seriously consider all the ramifications of the deal you are considering.

                                                                     

Your business' cash flow's growth stage.

Is your business bringing you comfortable and predictable income which you are looking to invest or would spending an important part of your income hinder any growth possibility for the near future?

Will you be able to afford any substantial and sometimes unexpected expense should you have to do unexpected maintenance on your building?

Usually, a commercial property will require a 15 cash down which, in some cases, can end up being a lot of money.

Don't forget you also have to factor in the price of insurances, taxes and legal fees.  Due to the importance of the figures involved in most commercial real estate transactions, I recommend you surround yourself with adequate representation meaning:  a real estate agent with experience and a positive track record as well as financial and legal advisers.

You make your money when you buy, not when you sell.

                                                     

One last but extremely important factor to consider before making your decision is that you make your money when you buy but realize it when you sell.

Paying more than the fair market value, not taking into consideration your cash flow factors (mortgage, interest rates, insurance, taxes and repairs incoming rent, other income possibilities such as parking for example) or letting your feelings dictate a purchasing decision may negatively affect your exit strategy for year if you are not careful.

What you should remember.

So we looked briefly at the different aspects of buying a commercial property.  Remember the advantages of being a landlord are:

1.       Choices

2.       Equity

3.       Appreciation

4.       Power

5.       Make sure you carefully evaluate your future cash flow.

6.       Purchasing the property won't hinder your growth strategy.

7.       You can afford unexpected and sometimes quite expensive repairs should they be needed.

8.       You can afford the cash down.

9.       Get advice from a professional financial advisor about your tax situation.

10.   Get advice from a professional law adviser.

11.   Get advice from a professional real estate adviser.

12.   Avoid free advice as it often end up being the most expensive kind.

13.   Evaluate the building's cash flow.

14.   Make sure the purchase makes sense even without appreciation.

15.   Find a reputable Kisumu real estate specialist.

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Tips on how to sell your property faster in Kenya real estates

Due to the ever rising number of players in the Kenya real estates industry, investors, private developers as well as personal property owners are finding it more strenuous to sell their property within the already crowded market. This is caused by the increase in competition levels that is owing to many individuals investing in the real estate sector in Kenya. Hence this requires that you package the house or property appropriately as well as in a lovely manner so as to catch the attention of clients, have them eventually choose your property over that of other competitors.

How do you start this technique of beating competitors to their own game? Just follow the steps below and you'll find yourself on your way to making that big sale.

Engage in a research- The most important order of business in getting ready for sale of a property is to become aware of the on goings within the Kenya real estates sector. Find out the market range prices for similar properties to be certain that you don’t find yourself either over quoting or under quoting your estate. Also get to know which real estate firm gives best deals in cases of commission they demand to help you sell the property in question. Get to know the one with a favorable deal and go for such. Make sure to offer some incentives to buyers to get an edge over competitors.

Keep your house- These are things such as repairs you will need to do now and again. Paint your house with suitable and attractive colors. Fix any broken appliances within the home and also the roof in the event the iron sheets are rusted. Make sure the house looks presentable before you decide to set it up for sale so as to attract buyers. If it happens to be your property inside a compound, make sure you mow the grass and trim your trees, just in case there is, in order to make the compound also look neat and presentable.

Price your estate appropriately- Find out neighborhood sales for the past say like one year for you to be knowledgeable about the value range of property within that locality. This will actually make you quote a price that's neither unrealistic nor too low. High prices particularly can be a big turn off to buyers and they tend to shy off from overpriced properties. The buyers themselves usually do their research before buying property, thus they too come armed with details about the niche cost range.

Do extensive marketing- Here is the very useful factor of selling a house in Kenya real estates. Do extensive marketing in social media, print and even broadcast media, not forgetting word for word marketing. Choose a reputable real estate firm to help you out with this crucial section of selling a property.

Negotiating and closing the deal- Kenya real estates sector is basically a sector with variety, meaning that similar offers originate from different people as well as businesses. It is essential to therefore be ready to be given offers and counteroffers. You should try to remain flexible regarding the pricing but avoid stooping too low also.

How to market your property in Kenya real estate

The Kenya real estate sector is a really competitive sector which requires an individual to be very original and innovative so as to manage the many different real estate firms in the industry. You have to perpetually be slightly ahead of the competitor and hence require developing absolute and artistic marketing strategies from time to time. You have to be sure that you match the tastes and preferences of given clients. This calls for you to actually go out and do an extensive research on what the clients want to help you be in touch with your potential customers.

The following tips and insights which I will highlight will give you tips regarding the best approach to stay relevant within the competitive Kenya real estate sector concerning marketing strategies;

Identify a target market- A target market by definition is typically a group of individuals having a certain want or requirement for your product or service and are also willing to part with their money for the similar reason. Real estate is an extremely wide field with a number of clients. It's important to identify if your target customers or market segment are the ones searching for a house, commercial complex or those looking to buy units. After you have come up with this, you'll be able to know what to provide your clients while at the same time do the work to the most of your capacity.

Segment your market- A market segment is basically a sub group of persons inside your market that share common characteristics which make the identifiable. Segmenting your market assists you as an investor to better have knowledge about behavior of your clients. For example do they tend to move to areas out of town or do they prefer the urban setting? Can they prefer units located near the main road or far from the main road? After having identified the behaviors of those potential customers, you will be able to get precisely what suits their needs and as a result everybody gets what he wants. They get the best suitable properties whilst you laugh all the way to the bank account.

Be unique in what you offer- The Kenya real estate being a competitive sector, it’s imperative you position yourself apart from others by giving stuffs that will catch the attention of your potential customers and one which will influence them and motivate them to keep coming back for more. You must be so much better than most, or if possible, all the competitors. Give particular attention to small things such as the interior design, overall cleanliness of the very house or compound; paint the home in order to make it look more attractive and such like things. With all of these you will be able to get more clients and as well retain the existing ones.

Engage a variety of marketing strategies- Most investors in the Kenya real estate market make the mistake of employing just one single marketing strategy and assume that they're well off. It is important for you to inculcate a wide range of marketing techniques for instance internet advertising, direct, newsletters and many other kinds so you can generate maximum results.