Summary: In this Article, you’ll get to read about —
Real estate investment attracts many, and as you consider the best approach, the land is among the most promising lines. While many investors focus on developed properties, primarily due to the allure of the cash flow, the land is a worthy consideration. Buying the scarce and most valuable real estate asset might not be on top of your mind as you consider the industry, but you stand to gain a lot. Among the top reasons you should invest in land as you explore real estate in Kenya includes:
Finding the best real estate property to invest in can be overwhelming. Opportunities don’t come easy since many buyers are also looking. When you find that dream opportunity, you want to move fast, which is not always possible. Land doesn’t have as much competition. You’ll quickly find vacant land. This allows you to take time and diligently weigh the situation to make a sound investment. Less competition helps you make land competitive deals, making it easier to grow a profitable and extensive real estate portfolio.
The land is a limited resource, and as more gets used, its value keeps rising. Land consistently appreciates value over the years, making it a valuable investment. You can find and buy plots in Kamulu and, in a few years, sell them at a significantly higher price; this is even without raising a finger to improve the land. It gets better if you buy land in growing areas; this is since the developments make the location more attractive, raising the land’s value. Land never depreciates like other assets since it does not wear and tear over the years. A building, for example, wears over time since the paint, plumbing, roofing, among other considerations, age, requiring significant maintenance to maintain a competitive edge. This won’t be an issue with vacant land, and with the rising value, you are assured that your investment is safe.
While the land is a valuable commodity, it doesn’t cost as much in a vacant state. You won’t need significant upfront capital to find and buy land. Moreover, you won’t spend much on maintaining the land. You won’t be paying substantial taxes like you would with a developed property. Furthermore, no repairs or maintenance are needed to keep the land at its best. Simple measures like erecting a fence could be all you need, expenses that can’t break your bank. With cheaper rates and low maintenance requirements, you can buy land, wait for value appreciation over time, and then sell at a profit, having done little to nothing.
The land offers a hands-off investment opportunity since it doesn’t require much care. You can buy and forget since you don’t have to do anything to the vacant land. If you don’t want to deal with managerial concerns like marketing, searching and vetting tenants, rent collection, and property maintenance, to mention a few, then investing in land is a smart move. You’ll be making passive income as the land’s value grows, all hands-off. If you are a beginner, or your schedule doesn’t leave enough room to manage more concerns, yet you want to diversify your investments to real estate, vacant land is your answer.
Once you buy land, you have the flexibility to develop it as you see fit. While this is subject to zoning considerations, you have more flexibility than buying already developed property. You can decide to leave it as-is, build residential or commercial property, do agriculture, or even rent it out to investors. Such flexibility allows you to pursue real estate investment options in line with your preferences.
Investing in land, while easily overlooked, is among the most promising ways to enjoy a profitable real estate business. The land buying process in Kenya is not challenging, further making it easier to break into the real estate arena.
Next, Read: How to Use Data Rooms for Real Estate in the USA