The Propertyleo Blog- Kenya's Ultimate Property Blog

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.

Propertyleo which is Kenya’s leading property portal advices that that you ask should around, before you choose a real estate agent or a mortgage provider here in Kenya.

1. Budget – If you want your real estate venture to be profitable, the first thing to consider is your budget. Carefully examine your finances. How credible is your credit worthiness? Next, make a list of all the projected expenses regarding the property under consideration and be realistic about it. Include insurance, taxes, getting utilities connected, inspection charges etc. Also include a margin for unexpected surprises.

2. Research – What are the current Real estate trends in Kenya in general and your region in particular? Pay particular attention to the pricing. What are your borrowing options? What are the current interest rates with your mortgage provider? Know everything there is to know about mortgage loans in Kenya.

3. Location of the Property – as long as you have not signed on the dotted line, you are entitled to change your mind. Are you buying the property for your personal use or are you planning to rent it out? Maybe you want to rent it out to try and have a soft landing on your mortgage and also to recoup some on the cash that you are paying out to your mortgage lender in Kenya.

4. Don’t be too trusting – don’t take the words of the real estate agent at face value. Have you seen the Kenya property news and heard of some recent demolitions in an area called Syokimau? Apparently some individuals bought some land that was disputed and ended up losing their homes which they built using hard earned money from their lifetime investments.

You visit the property take a friend experienced in such matters with you. If you have a trusted real estate agent among your acquaintances, request his/her guidance if possible too, look for a lawyer who specializes with Real Estate in Kenya to assist you with the purchase and land search.