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Ease in Finding Property Opinion
Terms used in Housing Finance / Mortgages in Kenya
- EMI: Equated Monthly Installment till the loan is paid back. It consists of a portion of interest and the principal
- Floating Rate of interest: Rate of interest which varies with the market lending rate. This means that there is an element of risk of paying more than budgeted amount in case the lending rates goes up
- Monthly Reducing balance: In this system interest reduces monthly with repayment of Principal amount
- Annual Reducing Balance: In this system principal is reduced annually at the end of the year so you end up paying interest even for the portion of principal you have actually paid back
- Fixed rate of interest: Rate of interest remains unchanged throughout the period of the loan
- Processing charge: It’s a fee payable to the lender on applying for the loan
- Prepayment Penalties: When loan is paid back before the agreed term of the loan, then banks/ institutions charge penalty for the prepayment
- Commitment Fee: Some institution charge commitment fee in case the loan is not availed within a stipulated period, after it is processed and sanctioned
- Miscellaneous Cost: It is quite possible that some lenders may charge documentation or consultant charges .
Thinking about building Your Own Home in Nairobi area?
If you do look a little harder finding land in Nairobi , getting planning authorization and commissioning an experienced architect are hurdles that stop many in their tracks.
Let’s start with the issue of finding land;
1. Buying an existing property and demolishing it to build yours
Finding an old already developed property, the advantage here is that a dwelling already exists on the land possibly with water, electric and gas already supplied. Assuming the property has little interest to the local authority it could mean you’re in with a chance of getting permission to demolish and replace it.
2. Searching on the Internet
The internet also offers plenty of Kenyan Property Portals and plot finding sites which are definitely worth checking. These Property websites sites will at least give you an idea of the going rate for building plots in the area you plan to build.
3. Getting Planning permission from the City / County Council.
Gaining permission can be a little less stressful if you present a plan which echoes local styles and possibly uses local material. This is not to say you can’t push the boundaries a little, but it’s often better to remain somewhat conservative with your ideas. If you present an ambitious plan, good for you, but keep in mind a fallback position if it’s wholeheartedly thrown out by the local authority. Again the internet offers lots of advice as to how to go about getting permission.
4. Get a good architect
Engaging the service of an architect is the next important step. You’ll need to push hard to get them to give you an idea of the costs involved in building your new home. Many will be happy to take you into project over-runs with plenty of additional expense. A lot of architects see budget increases almost as part of the course. So choose well and try to strike a balance between those who understand your budgetary restraints but can still deliver great design that’s well worth building.
Tips for Investing in Real Estate in Kenya Considering Current high Mortgage rates
Investing in real estate in Kenya, is investing in the future. Despite the economic backslide and the current rise in mortgage rates in Kenya the situation going to be a roller coaster ride for a while until the Kenya Shilling stabilizes against foreign currencies. But, yes. If you can afford to pay your mortgage hang on, you’ll soon reap the benefits. Prepare yourself with information and knowledge – your safety in consideration, before you take the plunge.
Getting an Appropriate Appraisal for Your Homes for Sale and rent in Kenyan property market
Property Leo is a one stop shop and a Kenyan property portal in real estate market. Essentially, getting an appropriate and accurate appraisal for the property on sale and rent is the best thing to do next once the homeowners have made the sale or rent decision on their property. Conversely, making their houses and homes for sale may not be as easy as it sounds. In essence, property appraisal can be complex and multifaceted especially when it involves many parties. Thus this creates difficulties and challenges in comprehension especially for the novice laymen. Property Leo has incorporated highly professional property agents and developers with an impressive reputation in the real estate and property development. Therefore house appraisal in property market is one of the most essential elements on the property purchase process. This enables the attraction of the probable and appropriate buyers to the house thus efficiency in the property market.